Tips for Buying Gold Now
If you’re about to make your first purchase of gold, then it’s a good idea to understand why you’re doing it and to know how to do it well. Here’s a few tips for you to consider before you place your order at Golden Eagle Coins.
Only buy physical gold
Gold’s primary function is as money. Only since 1971 has paper money not been backed by gold, and this has actually led to many people turning back to precious metals because they’re a physical commodity.
There are still people who buy gold on paper, but this method doesn’t actually guarantee that you own the gold. Sometimes when people try to claim the gold they own they find that there’s not enough gold actually available to honour the purchase.
Keep it physical and make records of all the hallmarks or other identifying features of the bars of coins you buy.
You should own the gold entirely
“If you can’t hold it, you don’t own it.”
This is a useful adage, especially when it comes to physical investments. If you don’t have a huge amount of money then buy small amounts – coins, ounce or gram bars – and store them somewhere on your property so you can access them if the banks crash. If you do use a storage company, make sure that you legally own every single atom – the company can’t pledge it or lease it out.
Buy liquid coins and bars
You need as much legal tender gold and silver as you can get, like the Australian Nugget, the Maple Leaf or the Austrian Philharmonic. If there is a crash, then you need flexible, relatively low value coins or bars. There’ll be a small fee on top of the spot price for these coins, but it shouldn’t be any more than 5-6%. Bigger denominations have smaller fees, but it depends what you’re after.
Buy with your savings rather than credit
Our current system has too much credit going on, so make a healthy purchase with money that’s actually yours. You won’t have to pay interest on your purchase or worry about having to pay it all back in a hurry because the creditors are panicking.
Keep some coins near you
Whether it’s in a safe or buried under the chicken coop, you should be able to get hold of it when you need to, especially if you’re in a hurry. Only stash as much as you think you’ll need in an emergency, and keep the rest in a safe jurisdiction.
A safe jurisdiction?
Switzerland is a safe jurisdiction because its political system is decentralized. The government can’t just seize citizens’ assets – cash or commodities – because it’s in trouble; this actually happened in Weimar Germany.
Make sure you’re compliant with any laws you have to recognize
If you’re just buying a few coins here and there, then you can do it anonymously, but once you start buying larger amounts, you’ll have to declare them and get tax advice. Similarly, if you store your gold in another jurisdiction, make sure you’re abiding by the local laws.