Key Investing Considerations

Unlock

The following questions are to help you decide on what is most appropriate for you.

  • Why did you decide to buy gold?
  • Are you an investor, speculator or saver?
  • Are you investing for the short, medium or long term?
  • Are you diversifying your portfolio?
  • Are you using gold as a form of financial insurance?
  • Do you want gold to be physically available at all times, or you simply want exposure to the gold market?
  • Will you want the gold delivered to you, or would you prefer it to be safely stored?
  • Do you have information about all the costs that may be involved? These include: taxes, commissions, premiums, storage and insurance.
  • What are your chances of prompt physical delivery? In a crisis situation, the chances of physical delivery are limited!
  • Is the counterparty (the precious metals dealer through whom you will be making the purchase) reliable and trustworthy?
Charts

Gold investing can be profitable when you take the time to learn all the benefits and drawbacks associated with your gold ownership options.

Before engaging in purchasing gold, you should consider the following:

  • Assess the prevailing trend, as well as other factors that are likely to impact on the price of gold.
  • Determine the kind of gold you want to acquire. For most investment purposes 22 carat gold or higher, is deemed appropriate.
  • Decide on the type of bar or coins to buy.
  • Compare prices against the current market price of gold to source low premium gold bullion products.
  • Choose the dealer with due diligence to avoid wasting money on fake gold bullion coins or bars.
  • Investigate the tax regime that applies to your purchase; capital gains, VAT - depending on the country you reside.
  • Make sure when buying to take delivery charges into account, as these weigh on the final price of your gold bullion acquisition.
  • Think ahead about where you are going to store it. Consider the risks in the storage of your bullion, and the cost of insurance to protect against risks.

When assessing one's gold ownership options one of the key considerations should be the costs (both upfront and possibly recurring annual fees), proximity to your asset and counter party risks. . Investors are increasingly wary of having too many counter parties (brokerages, custodians, sub-custodians, banks, trustees) involved in their gold ownership transactions. Investors are increasingly concerned in being able to take delivery of gold in the event of a systemic crisis.

If you want to hedge financial uncertainties, protect yourself against inflation, deflation, stock market volatility and potential currency debasement, there is only one portfolio item that performs well at most times.

Gold bullion

 

World Gold Counsil Royal Canadian Mint  US Mint  The Royal Mint  Rand Refinery  The Perth Mint Metalor Umicore  Balmoral  Brinks Malca Amit  FedEx