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The gold market is experiencing a significant surge, largely attributed to record-high prices. As economic uncertainty, persistent inflation, and various global concerns mount, investors are increasingly viewing gold as a reliable safe-haven asset. Currently, the price of gold has reached extraordinary levels, hovering around $3,000 per ounce. This dramatic increase has rekindled interest in investing in this precious metal.
If you have been contemplating entering the gold market, it may be time to consider making an investment. However, navigating the gold investment landscape can be complex given its status as a commodity. We consulted with gold industry specialists to highlight important aspects to consider when selecting a gold firm and how to embark on your investment journey.
Explore your options for gold investments now.
How to choose a gold firm for precious metal investments
Before selecting a gold firm, it’s crucial to determine the specific type of gold investment you wish to pursue, whether that involves gold bars or coins.
“The advantage of owning physical gold is that you have actual ownership of the asset, much like central banks and large governments do. When they invest in gold, it’s about possessing the product outright,” explains Alex Ebkarian, COO and co-founder of Allegiance Gold, a firm based in Los Angeles.
“Gold isn’t meant to replace your stocks like Apple or Nvidia. While it won’t yield dividends or interest in the short run, its primary purpose is to safeguard your purchasing power,” adds Ebkarian.
If physical ownership doesn’t appeal to you, consider alternatives such as gold stocks or gold exchange-traded funds (ETFs). However, before deciding which investment is right for you, take your personal financial goals into account.
“When including gold in your portfolio, you’re acquiring a fund or ETF, which serves an investment purpose. Conversely, purchasing physical gold should be regarded purely as financial insurance—it’s essential to distinguish between the two,” states Jordan Roy-Byrne, author of “Gold & Silver: The Greatest Bull Market Has Begun.”
After evaluating your options in gold investment, you can select the product that aligns best with your objectives. Here are key factors to assess when selecting a gold firm:
Business longevity
For new investors in gold, it’s advisable to partner with a firm that boasts substantial experience and can address your inquiries. “Seek out a firm with a track record of longevity. It’s vital for investors to verify this through state registration resources rather than solely relying on platforms like Trustpilot,” Ebkarian suggests. An experienced firm is generally more trustworthy and better equipped to assist you.
Begin exploring various gold investing options available online today.
Customer reviews
When selecting a gold firm, it’s essential to investigate reviews from current and past clients. “Identify companies that are well-regarded and have strong reviews,” advises Brett Elliott, director of marketing at American Precious Metals Exchange (APMEX).
Check customer feedback on platforms like the Better Business Bureau (BBB), Trustpilot, and others you find credible. Social media can also provide insights into public perception of the company. Additionally, investigating the company for any lawsuits or reports of fraud can be helpful.
Transparent pricing
Whether you choose a gold firm online or visit a physical location, transparency in pricing is crucial. You should understand the specifics of what you are purchasing, including transaction costs and any applicable fees like setup, maintenance, and storage expenses.
“An online approach may offer the benefits of clear pricing, a broader product selection, and the convenience of researching legitimacy from home without pressure,” Elliott remarks.
Conduct your research and compare pricing at various firms to avoid overpaying. If you prefer in-person transactions, be aware that some locations may have better reputations than others.
“Local specialty coin shops are generally safer options compared to pawn shops in major metropolitan areas,” Elliott advises.
Collaborative relationship
Ebkarian emphasizes that gold dealers vary in their approaches. Some may operate primarily on a transactional basis, where customers can make purchases with minimal interaction.
“In contrast, there are boutique firms that provide personalized assistance with product selection, storage options, and future liquidity strategies,” Ebkarian mentions. It is essential to choose a firm that aligns with your interests and preferences. According to financial advisor William A. Stack, it’s a warning sign if a firm employs high-pressure tactics or fear-based selling methods.
“Avoid any dealer that dismisses your preferred type of gold purchase in favor of pushing other options,” Stack warns.
Conclusion
Investing in gold can serve as a buffer against inflation. If you are new to gold investing or considering entry into this market, look for options that have lower barriers to access. “Gold bullion coins and bars typically represent the most liquid form of gold, usually accompanied by the lowest premiums,” Stack adds.
When selecting a gold firm and making a purchase, inquire about vaulting services or if self-storage is required. Roy-Byrne advises prospective gold investors to conduct thorough research across multiple firms and compare prices in order to avoid scams involving counterfeit gold.
“Exercise caution to prevent being overcharged. If you’re uncertain about the source, you may not be purchasing genuine gold,” Roy-Byrne cautions. In summary, it’s crucial to perform due diligence and avoid hasty emotional decisions, ensuring that you capitalize on the benefits associated with gold while steering clear of potential pitfalls.
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