Hobbies And Interests
Choosing a Type of Gold Investment
There are two ways to enter gold into your portfolio: possessing the physical metal and owning stock in gold mining. Depending on what you want to do with your money, both options can be attractive. If you are concerned with savings, then you should buy the metal, which won't pay dividends but will provide a certain level of security. If you want to increase your wealth, on the other hand, you'll have to take the riskier option of investing in mining stock.
Types Of Physical Gold To Buy
If you want to buy actual gold, then it's important to consider value and future expenses. Gold collector coins are a bad choice because there's often a high markup associated with their rarity—it can be as much as 100 percent over the value of the metal, compared to the 5 percent markup associated with bullion coins and bars. If you're a first-time buyer, you should consider buying one-ounce bullion coins such as the American Eagle, Austrian Philharmonic or Australian Nugget: they're a good value and you won't have to file a 1099 with the IRS when you sell them in the future, as you would with a larger form of gold, such as gold bars.
Authenticity
It's important to ensure the quality of what you're buying. Some less reputable dealers may deceive you as to the real worth of what you're purchasing, to their advantage. It's always preferable to buy gold from a large, well-respected dealer, one that will provide you with a certificate of authenticity.