How to Invest in Gold

Post on: 23 Май, 2015 No Comment

How to Invest in Gold

& Avoid Costly Rookie Mistakes

By submitting my information I agree to be bound by the website User Agreement. For a free consultation with an Account Advisor, call (800) 775-3504 .

Maximize Your Return

Financial advisors recommend that investors allocate 5% to 20% of their portfolio into precious metals to secure their assets and protect their money from rising inflation and a difficult world economy. Your exact percentage will vary, depending on your individual situation and investment goals.

Asset Class Diversification

Stocks and Precious Metals are two different asset classes. Each class has its own advantages and disadvantages, but a diversified portfolio makes you less dependent on a single asset class for overall performance. When stocks and precious metals are combined into a single portfolio, a non-correlated asset is created. The non-correlated relationships of these two classes are ideal partners! When gold is rising stocks are generally falling in value, and vice versa.

Real Life Case Study

In April of 2010, Bob and Steve both realized it was time to get off the rollercoaster of the Stock Market and move a portion of their investment portfolio into gold and precious metals. To start off, each one had $50,000 to create a portfolio.

Bob takes his $50,000 and acquires 42 ounces of pure gold in the form of Gold Eagle bullion coins for just over $1,113 per Troy ounce, the market rate at the time of purchase. He could have bought any type of bullion coins or bars – the price would be roughly the same. Since all of Bob’s assets are in a single “class” (bullion), he has created a “correlated” portfolio.

After five years, the price of gold had risen to $1,232, an increase of 10.7%. Bob’s initial investment of $50,000 is now valued at $55,350. This is certainly better than many stocks or other investment options over the same time period, but not exactly the returns he was hoping for.

Steve, on the other hand, also wanted to pull some money out of the Stock Market but was concerned about the volatility of the price of gold. To protect himself, he decided to diversify his precious metals portfolio by owning “two classes” of assets (gold bullion and Investment Grade Coins). Steve acquired 21 ounces of gold (21 Gold Eagle coins, in this example) for $25,000, plus he acquired 5 rare Gold Eagle Investment Grade Proof 70 sets. There are only about 500 of each of these sets in existence in the world, making them worth much more than the standard-issue bullion version of the Gold Eagle coin. As a result, their investment performance does not rely on the price of gold to continue going up.

At the end of 5 years, the bullion portion of his portfolio had risen from $25,000 to $27,675, the same 10.7% increase that Bob experienced. Meanwhile, the Investment Grade Coins in Steve’s portfolio had increased in price by 86%, going from the initial investment of $25,000 to $46,500. When you combine the modest gains in bullion and the stronger gains in Investment Grade Coins, the total portfolio value had increased to $74,175, a gain of 48%. Steve’s double-asset portfolio out-performed Bob’s single-class portfolio by a wide margin, with a net gain of $18,825 higher.

Be Like Steve

If you want to be like Steve, the secret is to acquire the right coins at the right time. Though this is no easy task, working with your Metals Specialist to discuss your investment goals and objectives will enable us to recommend specific coins and portfolios that will give you the best chance of realizing the return that you’re looking for.

Your Account Advisor Can Help

Our Free Investors Guide will walk you through the entire process and show you case studies from different investors. We also provide the tools to help you determine the best investment strategy to pursue, based on your individual investment goals and your unique profile.

Diversification Is Key

You probably understand the importance of diversifying your portfolio, since thats why many investors turn to precious metals in the first place. But did you know that you can diversify even WITHIN precious metals ?

There are two primary ways to invest in gold and precious metals Bullion and Investment Grade Certified Coins. Though they may look alike in some cases, they are actually two different asset classes, meaning they do not necessarily go up and down at the same time.

Bullion is raw gold, silver or platinum in coin or bar form that derives its value exclusively from the metal content. The value of bullion fluctuates according to the spot price established by the Commodities Exchange (COMEX). The price can be fairly volatile, similar to the stock market. Over the last 10 years, precious metals have been in a bull market period and the value of bullion has been increasing fairly steadily, though it does experience peaks and valleys.

Bullion is generally recommended for investors that may be looking for a quick return and have a high tolerance for risk, since the price can rise or fall dramatically in a short amount of time. The most popular types of bullion include American Eagles, American Buffaloes, South African Krugerrands, Canadian Maple Leafs and refined bars ranging in size from 1 ounce to 1 kilo (32.15 ounces).

Investment Grade Coins. such as modern American Eagle Proofs and rare gold coins minted prior to 1933, are graded by a third party organization (PCGS and NGC are the most widely recognized) and their quality and condition are guaranteed once they are certified .

The value of investment coins is determined by supply and demand. just like other high-end collectibles (fine art, rare wines, antiques). Investment Grade Coins are considered to be a more secure investment since historical data indicates much less volatility. along with a more steady return .

Invest Like a Pro

Investment is serious business. Many investors are moving money out of the stock market and into precious metals.

How to Invest in Gold

Do it right and you can enjoy the benefits of a more secure long-term investment. Do it wrong, and you’ll be back on the same roller-coaster ride of ups-and-downs that you are trying to get away from.

Your Investor Guide will give you the information you need to make a wise move into precious metals, including:

Click on the Links Below to Learn More About Rare Coins:

Top Do’s & Don’t From Pro Investors:

  • DO get to know your dealer — A single trusted dealer can get to know you and your goals and look out for your best interests.
  • DO have a realistic timeframe — We all want to buy low and sell high, but flipping metals is best left for professional commodities brokers.
  • DON’T shop for low-priced coins — If you want something cheap, how do you expect it to grow in value?
  • DON’T expect the metals market to act like the stock market — The markets generally do not move together. You can’t use one to predict the other.
  • DON’T rely on bullion for a secure long-term investment.

The Secrets of the Metals Markets:

  • Find out the industry secrets that most gold dealers dont want you to know
  • Learn which coins go up in value the fastest — and which ones to avoid!
  • Uncover common gold coin scams and how to spot them
  • Discover how to use bullion and certified coins to your advantage

Bullion or Certified?

The Precious Metals Advisors at The U.S. Gold Bureau will work with you to create a balanced portfolio that will help you meet the goals you are trying to achieve based on your tolerance for risk, timeframe and investment philosophy .

We can recommend specific allocation levels of bullion and investment coins to build a strategy designed to safeguard your portfolio from fluctuations in the commodities market while protecting your investments for the long-term .

The next step is to complete our Metals Investor Worksheet to help uncover your risk tolerance, timeframe and other key factors that will help determine how you should structure your portfolio. You can use this information, along with your Metals Investor Score, when you speak to an Account Advisor so you will be on the same page and work toward the same objectives.

At the United States Gold Bureau, you will be assigned a personal Account Advisor who will guide you through the entire process from beginning to end. Call us now for a free no-obligation consultation with a Metals Specialist to ask any questions you may have or even to place your first order. Just call (800) 775-3504 .


Categories
Gold  
Tags
Here your chance to leave a comment!