At a time when buying gold seems critical it’s also critical to know what you are doing. If you haven’t purchased gold before then you might have cold feet when it comes to spending your money. I don’t blame you. I remember how I felt before I made my first purchase. I was a bit nervous and I wasn’t sure how to approach the purchase and I had no idea what to expect.
There are some general “rules” that you should follow if you plan to buy gold. You want to educate yourself on an important purchase like this because there is no perfect time to buy gold regardless of what your friends and family tell you. The price has been volatile for some time, and that probably won’t change any time soon. Today, I am going to share with the ten commandment of buying gold so that you have a greater understanding of why you should buy, and why trends don’t matter all that much on price.
If you are planning on buying gold, there are ten things you really should know before you do. This is information for you and for the entity you purchase from as well. There are state laws regarding the purchase of gold and transactions involving gold, so don’t overlook these.
- Always take delivery on your gold purchase. When you buy don’t back out. You don’t want to leave your source high and dry.
- Don’t buy premium if you can buy otherwise. If you buy premium you’ll overspend. The plan is for you to trade in that paper money that won’t do you any good so you can buy actual currency you’ll be able to use in the future.
- Bullion is for business, numismatic coins are for collectors! Bullion is the gold you want. Coin collectors have held back from buying the collectibles because they want to prepare for a new economy too. Be mindful of this!
- Always buy gold. It’s more valuable and it’s gold no matter where you live.
- Buy in small quantities before you go big. If you are new to buying gold, make sure you get into the habit and you have set the paper money aside to do so. The more you educate yourself the more prepared you’ll be to go into a bigger purchase.
- Don’t buy coins you don’t understand. It’s easy to look at coins and think they are cool, but do they hold real value for you? If you don’t understand them don’t spend the money. It’s that easy.
- Get to know your supplier. It’s wise to investigate who is who and whether or not they are a reputable dealer.
- Don’t buy what the government is looking for. The government will attempt to confiscate certain type coins. Educate yourself; I can’t say this enough! Focus on what you can spend as currency.
- Don’t exchange gold bullion for $20 U.S. gold pieces. Bullion is your currency period. Never forget that.
- Don’t break the law under any circumstances! Follow the rules for your locality, state, and federal. Remember, this is about preparing for a tough economy and nothing more. Your family depends on you to provide for them, and once you buy gold you’ll need to hang onto it.
If you know someone you trust that has been buying gold already ask them for advice. Don’t be afraid if you don’t know all of the details upfront. Focus on educating yourself and talking with folks that have been buying for a long time. They know the market well enough to give you pointers and they can direct you to reputable dealers where you can get the bullion you want.
I hope that you found this article helpful, and I hope that you’ll share it with others that are “buying gold” to prepare for the future.