With inflation constantly influencing the purchasing power that money has, you may be looking for a stable investment that you know will be protected from inflation. That's why many people decide to buy precious metals, like gold, which retain their value over the years. Here are some tips to know about investing in gold as a first-time buyer.
Decide On The Product
When buying gold from a gold seller, you'll notice that gold is commonly sold in bars or coins. You need to decide which one you are going to buy and the weight of the coin or bar that you are interested in. It is common for gold coins and bars to start out in 1 oz. sizes, with gold coins being a very popular option.
The reason people invest in gold coins is that it's very easy to check a gold coin's authenticity. It is easy to verify the purity of a gold coin simply due to where it came from and the year it was made. This can't be said about gold bars, which often have more questions about them and are harder to verify.
That said, gold coins are also easier to sell to individuals down the road for the exact same reason. They may be more hesitant to buy a gold bar but can look up the authenticity of a gold coin.
Focus On The Weight Of Gold
One thing that you need to be aware of when buying gold coins is to not be tricked into paying for more than what the coin is worth when it comes to its weight in gold. This is because there are collectors' coins that have a higher value than other coins, which can be tempting to purchase. This is fine if you are purchasing the coin as a collector of rare gold coins, but not as someone looking to buy it as an investment and sell the coin in the future. By focusing just on the weight of the gold in the coin, you'll be able to easily sell it to another gold buyer in the future that is not purchasing the coin with a collector's mindset.
Think that you are ready to get started with buying gold? Reach out to a gold seller at a company like Rocky Mountain Coin in your local area for more information on how to start out investing in gold coins.