If you haven’t noticed by now, gold is on the rise! In late 2022, gold started an upward trend, not uncommon when the US dollar shows decline. In a recent Forbes article entitled Gold Stocks Are Rising In 2023 – Should You Add Precious Metals To Your Portfolio, the contributor states, “Despite uncertainty and potential headwinds, gold has plenty going for it in 2023. The Fed is still raising rates, but slowing its pace.” The Forbes contributor goes on to say, “Gold, like other commodities, can be subject to extreme swings in value over short time horizons. However, over the long-term, gold is generally viewed as an extremely stable investment.” As investors seek precious metals investments to diversify their portfolios in a dismal market, it is a good time to consider the best ways to buy and store gold.
Best Gold Investments To Make Now!
There are basically two main ways most investors make a gold investment: 1) buy gold-related stocks, individual retirement accounts (IRAs), exchange-traded funds (ETFs), and mutual funds, or 2) buy gold bullion—pure, investment-grade gold that is certified as such—usually in the form of physical gold coins or gold bars. While stocks, IRAs, ETFs, and mutual funds are considered the easiest and safest ways to make a gold investment, physical gold is often a more attractive, desirable option that does not rely on the government.
- Stocks, IRAs, EFTs, and Mutual Funds – These securities shares represent a set amount of gold that can be bought or sold through your brokerage or retirement accounts. It is a safe, easy ways to invest in gold and count on a third party to guide you through your purchase.
- Physical Gold – Gold bullion comes in the form of coins or gold bars. Gold coins and gold bars can be purchased through a reputable broker. It is possible to purchase gold from a bank, but it is not recommended because you may pay two or three times more for gold and it may take more time to secure these physical assets from a bank.
Keep in mind, while subject to change, no branch of federal or state government should be interested in the amount of gold you might own. If you are making a gold investment, it is important to understand not only your gold-buying options but also your gold storage alternatives. You have storage choices depending on the type of gold purchase you make.
Best Ways to Store Gold
As investors, you are likely relying on four major types of gold storage depending on the gold investment you choose: 1) home storage, 2) retail bank safety deposit boxes, 3) bullion bank vaults, or 4) bullion depositories. One of these storage option should fit your investment style:
- Home Storage – Home storage for your precious metals must include humidity protection, stable temperatures, insurance, a safe and secure location, and easy access. While home storage gives peace of mind, it also comes with some disadvantages. Large quantities of gold or other metals purchases can take up a lot of space and may also increase personal risks. Home storage does not always protect your assets in terms of natural disasters or unwanted entry by an intruder. It also places full responsibility on the investor.
- Retail Bank Safety Deposit Boxes – Many investors like the convenience and security of their local retail bank; but as environmental social governance compliancy and worldwide threats of a transition to digital currency circulate, many investors are not going in this direction. Not only that, a bank limits the hours in which you can access your assets, the bank does not insure your contents in the case of loss, bank storage costs money, and the space for your assets may be limiting. Federal laws do not govern bank safety deposit boxes.
- Bullion Bank Vaults – Your gold broker may recommend a bullion bank vault where a third-party entity participates in the purchase, lease, sale or lending of pure bullion. These banks are generally for larger gold bar deposits and offer heightened security compared to a local retail bank. Given their capability for large lots of gold, they also engage in an unallocated type of bullion account that offers an instant cash transaction. You will not find these banks in rural locations and the minimum amount of gold to open an account is usually one thousand ounces. These vaults are primarily for institution-based transactions.
- Bullion Depositories – This common type of gold storage involves a private security company that guides in both the storage and the transfer of gold bullion. Not only do the storage containers use industrial-grade steel but also your assets are fully audited and insured. The bullion depository is also good for large amounts of precious metals, and expect others’ assets to be stored there as well. There is a storage fee and your physical presence may or may not be required. There could be a delay when you wish to withdraw your assets.
Why You Shouldn’t Wait
As stated in the Forbes article, “A good portfolio has a mix of both risky and conservative investments. Holding a conservative investment like gold over the long-term can be a good way to offset riskier investments in your portfolio, like stocks. Both are necessary, and your asset allocation will depend on your financial goals, risk tolerance and duration of investment.”
Gold is certain to play a crucial role in the retirement portfolio of your future. It has already guided investors nationwide to hedge against inflation, protect their assets during economic downturns, and serve as a return on investment.
Whether you want to buy physical gold or buy gold for an individual retirement accounts (IRA/401k), you must be acquainted with a reputable broker. At Reagan Gold Group (RGGUSA), you get the advice you need, the highest standard for gold products, and the options that meet your personal investment needs.
In today’s gold market, it is critical that you find a trusted source to ensure the purity, size, form and weight of your precious metals products before you buy. Bullion bars and coins are of high interest given the state of the nation. Contact RGG today for the best ways to buy and store gold. Consider a 10% to 20% gold mix for your retirement portfolio. You shouldn’t wait.