Sooner or later, every person thinks about where he could invest his money in order to make a profit and increase savings. It’s especially difficult to choose where to invest best when it comes to small money. Everyone strives for material stability, but not everyone can afford to buy shares of top companies such as Apple or Google, which can bring great profits to their owners. If you are a newbie with a small budget, it’s best to choose long-term and low-risk investments, such as investing in precious metals.
Before buying anything, you need to understand what the price of this product depends on. There should be options, like:
- What are the tendencies for growth in price in the near future;
- Legal state of your investment;
- Calculate commissions and taxes;
- Make a forecast of your approximate income from this.
Many experts recommend buying gold, as this commodity has grown by 35% in value over the past year. This is a good way not only to save your money from inflation but also to get profit from this purchase. There are two ways to invest money in gold. You may invest in gold bars or buy gold coins.
Investing in gold bars.
It’s considered one of the easiest and most profitable options among investors. However, it has a number of nuances that need to be mentioned:
- When buying a gold bar, you must pay tax;
- The big difference between the purchase and sale price. You will need to wait until the cost of this precious metal rises in price by 25-30% to make a profit. It may take over a year;
- Gold bars have the necessary storage requirements. Any damage to the gold bar can result in a loss in value;
- Storing gold in a safe deposit box is the best way to keep its value, but it’s additional costs;
- Selling the gold bar may require expertise, which is paid by the seller;
- Gold bar weighs more than 2 pounds and may be too expensive for a novice investor.
Now let’s figure out what are the advantages of buying investment coins:
- These coins can be accepted as a means of payment, so you are actually just doing a currency exchange and don’t have to pay any taxes for it;
- Coins resale are often quick and risk-free;
- Gold coins are lightweight, usually only a couple of ounces, and they don’t require big capital to buy them;
- Such coins are sold in special cases, where they are protected from damage;
- Investment gold coins are made from the finest metal and have high purity.
Disadvantages that you may face if you decide to invest in gold coins:
- Such coins usually don’t have a numerous value, so you can only rely on profits from the rise in the value of gold in the market;
- This is one of the long-term investment options. You will not get profit if you sell such a coin in a few months, but in a year you will not only save your money from inflation but also make a profit;
- The purchase price of an investment coin will be higher (compared to bullion of the same fineness and the same weight). This parameter is associated with the design work in the manufacture of the coin;
- The purchase price of the investment coin will be higher (compared to a gold bar of the same fineness and the same weight). This parameter is associated with the design work in the manufacture of the coin.
This article will be useful for you if you want to learn more about alternative investments and how to invest money with low risk if you have little savings. Of course, this is just the basic information that a prospective gold investor should know. If you are really ready to invest in gold, then the best solution would be to discuss this with a specialist and find out more information about your state’s laws on buying gold, and correctly calculate the profitability of such an investment.
Remember that you only need to buy gold from trusted dealers. You will find fair prices and good quality goods from them, as well as professional advice. You can also buy gold online. The main thing is to find a proven and reliable online store.