There are two primary reasons for investing in gold: Investing for capital appreciation (to earn money), or as insurance against economic and world uncertainty. It’s important to understand the difference between both types of investing, so you can tailor your investment goals accordingly.
Investing in gold because you anticipate its price will rise. When purchasing gold for capital appreciation, you are buying with the expectation that the price of gold will increase in the future. Whether the price goes up or down depends on the market and the current value of your investment will fluctuate. The goal is that, in the future, you might be able to sell the gold for more than you paid for it.
Investing in gold as insurance against economic uncertainty. The value of currencies fluctuate due to inflation, weakening of the U.S. Dollar, and world instability. Investing in gold as insurance can protect you against some of the effects of economic and world uncertainty. Gold prices often increase as the dollar weakens, and therefore many see it as a sound investment to protect against difficult economic times.
Look into investing in authentic gold bullion. When deciding to invest in rare coins and gold bullion, make sure the item is authentic, and investment worthy. Many different advertisements attempt to sell you amazing quality gold coins at great prices, but most of the time these items are only gold-plated coins. Non-investment worthy rare coins and bullion almost never have a chance to appreciate in value over what you paid for them. Some coins are investment-worthy, but are sold for too much money over the market price. So, even if the price of gold goes up your investment is supposed to appreciate in value, it actually does not. At Paul Albarian & Associates, we make sure the gold bullion coins we provide you are 100% authentic, investment worthy, and at the right price.
Call us at (818) 827-7152 to further discuss your interest in investing in gold for either capitalization or insurance.