The shiny, brilliant nature of gold makes it very desired, and thusly very valuable and expensive. Investing in the rare precious metal is no doubt a good idea, however can seem like a tricky game. Plenty of scams are out there on the market, and so I am here to give you some tips and pointers on what to look for when investing, how to best protect your money and investment by avoiding scams, and how to find an online dealer.
To begin with, realize that there are two different classes of gold you can buy: physical and paper. Physical gold is just that, cold hard gold, including bullion coins and bars. These can be bought from a local dealer or online, and can either be shipped to you or you can pay a fee to have them stored elsewhere. Paper gold refers to everything from exchange traded funds (ETFs), to IRAs, stocks and bonds. So for instance, you may buy into a stock of a gold mining company, or you may invest in an ETF, actual gold with a certificate noting your holdings. The same is true with IRAs, wherein you don't actually retain physical gold.
So now that you are aware of the types of gold you can purchase, how do you ensure that any and all transactions are trustworthy, and that your money will be safe? Well for starters, it is good to understand the ways in which gold scams can happen. Scams happy more frequently with paper gold, i.e. you purchase an ETF from a company, however they are not reputable, and the paperwork they send you is completely falsified. This is also true with stocks and bonds. Thusly, be sure to only ever buy through well-established and trusted dealers who have been in business for at least 10 years, and check and re-check their reviews and your sources.
Physical gold scams can be avoided by using the same tactics (i.e. researching the company very well before purchasing to begin with) however the scams are pulled off differently. Either the gold sold is of very low purity (thereby significantly lowering its value), or its not even gold, rather just a metal substitute with a gold coating poured over it to appear real.
To find an online dealer, you will want to do much the same as finding a physical dealer. Ask around to your friends and financial advisor for referrals on reputable sources. Browse through plenty of websites looking at dealers. Read all of the reviews. Investigate them through other, external sources. Ask them questions directly about their sources and business dealings, and if any red flags pop up, look somewhere else. Just make sure that you do thorough research before you buy, as it is your only insurance to keeping your money safe.
To begin with, realize that there are two different classes of gold you can buy: physical and paper. Physical gold is just that, cold hard gold, including bullion coins and bars. These can be bought from a local dealer or online, and can either be shipped to you or you can pay a fee to have them stored elsewhere. Paper gold refers to everything from exchange traded funds (ETFs), to IRAs, stocks and bonds. So for instance, you may buy into a stock of a gold mining company, or you may invest in an ETF, actual gold with a certificate noting your holdings. The same is true with IRAs, wherein you don't actually retain physical gold.
So now that you are aware of the types of gold you can purchase, how do you ensure that any and all transactions are trustworthy, and that your money will be safe? Well for starters, it is good to understand the ways in which gold scams can happen. Scams happy more frequently with paper gold, i.e. you purchase an ETF from a company, however they are not reputable, and the paperwork they send you is completely falsified. This is also true with stocks and bonds. Thusly, be sure to only ever buy through well-established and trusted dealers who have been in business for at least 10 years, and check and re-check their reviews and your sources.
Physical gold scams can be avoided by using the same tactics (i.e. researching the company very well before purchasing to begin with) however the scams are pulled off differently. Either the gold sold is of very low purity (thereby significantly lowering its value), or its not even gold, rather just a metal substitute with a gold coating poured over it to appear real.
To find an online dealer, you will want to do much the same as finding a physical dealer. Ask around to your friends and financial advisor for referrals on reputable sources. Browse through plenty of websites looking at dealers. Read all of the reviews. Investigate them through other, external sources. Ask them questions directly about their sources and business dealings, and if any red flags pop up, look somewhere else. Just make sure that you do thorough research before you buy, as it is your only insurance to keeping your money safe.
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