Gold Investing Mistakes You Can Easily Avoid

Over the past few years, gold investment has grown severalfold in popularity. National banks and small investors are actively buying up the precious metal.

At first glance, it seems that there is nothing easier than buying a gold bar or coin and then waiting for it to rise in price.

But even in such a simple matter, there are many nuances that should be taken into account if you are planning to invest in gold.

To avoid mistakes when investing in gold, you should first answer questions such as: What to buy, where to buy, when to buy and for how long?

Investing in gold is for the long term

One of the mistakes beginning investors make is that they expect to buy gold bars and quickly make money on rising prices.

But when investing in gold, you should be prepared for the metal to not only rise in price, but also fall in price. Furthermore, there is such a thing as a gold spread.

Therefore, such investments are made for a period of at least 5 years; during this period, the precious metal is guaranteed to increase in price.

If you want to make money quickly, then your choice is short-term gold trading through brokers .

What gold should I buy for investment?

I have already said more than once that there is absolutely no point in buying jewelry, since when you buy it, you pay a lot for the item, and when you sell it, it is bought back as scrap precious metal.

Furthermore, gold bars are much easier to sell than gold coins; they are more liquid and carry lower commissions. They come with a certificate of authenticity.

But that's not all. When buying, you should only buy bars from reputable manufacturers. The list of such companies is published in the Good Delivery List and changes periodically. If you come to sell a bar from a dubious manufacturer, they'll simply buy it for less.

Size also plays a role. Although the larger the bar, the lower the price per gram of gold, it's still best to buy bars no larger than 50 grams, as you can sell some of the gold if needed.

Where to buy gold bars

Many investors make a common mistake by purchasing gold bars from a convenient location, such as their bank.

But you shouldn't buy where it's convenient, but where it's cheaper. Thanks to the Internet, you can compare the selling prices of gold bars at different companies and banks.

For example, here are the current prices in Poland at various companies:

That is, depending on the company, the difference can be quite significant, from 1 to 12 percent, which, when purchasing large volumes, will amount to a decent amount.

When to buy gold?

Although investing in gold is a long-term investment, it is still better to buy the metal at a more favorable price.

For example, just a couple of days ago the price of one troy ounce was $2,970, but today the price has fallen to $2,910, that is, by 1%.

Therefore, it is advisable to make a purchase not immediately after a strong price jump, but to wait for a pullback, which will definitely happen.

By investing in gold, you will definitely win, but taking into account the above points, your profit will be even greater.