How to Buy Gold Wisely and how to Start an Investment Portfolio

Ten years ago, having just seen a commercial to buy gold, I thought it would be wise for myself to invest a small portion of my savings.  After all, at that time silver was only around $6 an ounce, and gold $300 an ounce.  I began looking through my savings accounts to determine if I could invest in gold; I also wanted to use my savings money to buy my favorite car, the Camero.  Being the unwise person that I was back then, I decided to put 100% of my savings toward that car.  Now, that is one of my greatest regrets.  Every ounce of gold that I purchased back then would have earned $1000.  Any money that I put into silver would have tripled.  If only I had invested that $20,000!  Had I invested that money, I could have had an investment portfolio worth $60,000.

In this article, I will tell you step-by-step how to start your very own investment portfolio which could triple in the next ten years.

Question: What if I put all my money into precious metals and then there is a drastic decline in its value?  Is it really wise to invest in gold?

Answer:  Precious metals often will decline in value, however they usually will overall increase over time.  If an ounce of silver increased $1 yesterday, but decreases $0.10 today, you still make $0.90.  You must also remember that US Dollars do indeed increase/decrease.  They usually will only decrease (inflation).  Why?  Because our government continues to print more money, hence causing inflation.  Can they print gold? Absolutely not!  That is why gold is secure.  It is rare and you cannot inflate the amount of gold on earth.  “You can, however discover more gold mines, right?”  Yes.  But still the inflation of dollars is far more than the occasional inflation of gold.  Gold is also so rare, that when any gold is discovered, people and governments readily purchase it.  What has been the longest currency (even since the Ancient Egyptians)?  Gold!  Just the fact that it has been increasing in value for the last 10,000 years is only proof that it will probably increase during your lifespan.

Have I convinced you that you really ought to start even a small investment portfolio?  Now I will show you how to do it.

(1) Allocate all your savings.

Determine exactly how much you wish to spend on precious metals.  Make graphs, charts, and timelines of your future expenses (college, new car, etc).  I would advise you not to put 100% of your savings in gold, however do consider at least 25-50%.

(2) Decide which gold/silver products to purchase.

Not all gold is created equal!  DO NOT, and I emphasize DO NOT, spend $100,000 buying a 300-ton gold block from “Joe’s Gold and Burger Shop”!  There have been numerous incidents of individuals buying from unreputable dealers who sold gold plated tungsten bars which looked exactly like gold bars, however were worth only a fraction of the cost of an equal sized gold bar.  I would suggest the three following companies:

US Mint (Coins) – If you wish to purchase coins, this is by far the best place.

APMEX (Gold Bars and Silver Bars) – If you wish to purchase bars as opposed to coins, this is the best company.  They have excellent support and even an online chat where you can instantly speak to one of their highly-qualified sales representatives. (Rare Coins) – If you wish to not only enjoy the benefits of gold, but also those of owning a piece of history, rare gold coins are for you.  They are almost a double investment: amount of gold and being a rare coin.  These coins are absolutely immune to inflation because it is not possible for them to go down in value because 1908 coins are not being minted anymore!  It is not possible to “make” more or “find” a mine of more of them.  If you are serious about investing, this is where to go.

(3) Make a Purchase

Use your common sense.  If you buy a huge gold bar, pay the extra $20 for insurance on the package.  Make an effort to be at your home on the time of arrival.

(4) Keep good care of your investments!

This goes especially for silver because it can tarnish easily.  Use clothe and jewelry polish to keep them clean.  I personally use these cleaners.  Although these metals can be held, try to avoid frequent usage.

(5) Be Aware of the Gold Prices

It is not hard to calculate how much your portfolio has changed in value.  If the market is looking good, purchase more bars!  There is no reason to just keep what you have.  If silver is declining while gold is sky-rocketing, sell your silver and trade it in for gold!

I hope you will be able to start your own portfolio!  Remember, when buying gold or silver, you are not “buying” but rather “trading” a declining source of wealth for a growing source of wealth!