LOS ANGELES, July 3, 2017 /PRNewswire/ -- There a number of options available when it comes to acquiring gold or precious metals, and it can sometimes be overwhelming to determine the best strategy for you.
Our guide will help you differentiate between the different ways you can invest in gold.
Gold can be bought in a variety of shapes and sizes - from ingots to bars to coins. Not all gold is created equal - the most commonly used coins and bars will likely be easier to sell when you want to cash in. The most internationally recognized and demanded coins, for example, are the American Gold Eagles 22kt, American Gold Buffalos 24kt and Canadian Maple Leaves 24kt.
Storing Your Metals
Gold dealers will offer the option for you to take delivery of your metals, or for them to hold the metals for you.
If you choose to take delivery, there will be a cost for secure postage, and the burden will be on you to insure it or arrange secure storage if so desired.
If you want the dealer to store the gold for you, there will be a storage fee. This is typically charged as a percentage of the value of the gold.
Risk and Paper
An alternative strategy for gold investment comes in the form of exchange-traded funds, or "paper gold."
In this form of investment, no physical products change hands - which provides an added element of risk to your investment. Because ETFs are not backed by physical holdings of gold, they are decidedly riskier than a physical gold investment.
To further hedge against uncertainty, investors can also use retirement accounts, such as IRAs or 401ks to purchase precious metals. Gold IRA accounts function the same way as a regular IRA, only instead of holding paper assets, they hold physical bullion coins or bars. Gold IRAs can be used in combination with other precious metals, such as silver, platinum and palladium. The metals are traditionally held in a vault for the benefit of the IRA account holder until he or she chooses to take possession of the holdings via distribution.
Gold has been used as a safe store of wealth for centuries. The biggest advantage in gold is that it can be relied on to hold its value when other markets are struggling, and balance out paper investments that may be more volatile.
"Capital Gold Group is proud to be a US Mint Distributor and offers a wide range of products for physical delivery and seamless retirement integration," says Jonathan Rose, CEO and President of Capital Gold. "Our team has been helping people diversify with gold and silver for over 15 years, and now is the time to be buying gold and silver."