subject: Investing in Gold – Tips for Beginners [print this page] Investing in Gold Tips for Beginners Investing in Gold Tips for Beginners
Since the very beginning of human civilization, Gold is equally treasured by both men and women (women craving for Gold jewelry while men loving it because it has always been a symbol of wealth and power). As an investment Gold is probably the oldest and the most popular form of investment. It is not quite established, exactly who was the first one to think of Gold as a representative of wealth or money. Gold is normally considered a very safe investment, especially in tough financial conditions such as political turmoil, financial crunch or stock market crash. However, the return on investment is often not that good when compared to other investments like bonds or stocks.
For beginners, there are various ways to start investing in Gold. Some of them include (but are not limited to) buying bullion gold bars, gold coins, gold accounts and gold exchange traded funds (GETF). Investing in gold doesn't require the kind of investment astuteness which is required when investing in other ventures. Also, gold investment is a relatively safe investment, at the same time it doesn't offer the kind of yields that you can expect when investing in other more risky, and at the same time more profitable alternatives.
One must remember that investing in gold is not like investing in stocks where you must consider many factors before buying or selling stocks, for the reason that gold prices keep relatively intact even when there are huge ups and downs seen in the economy. However, the best time to invest in Gold is well before the economical turmoil starts because once it starts, people will rush to buy Gold to safeguard their capital, which will result in shortage of Gold. One mistake beginners often make is buying the Gold when the prices are going up (makes sense to invest in something when the prices are rising); however it is not advisable in any investment. You must invest, when the prices have not started to climb, for the reason that you never know as to how far the prices will go (this advice holds true for many other forms of investments as well).
If you are just starting with a small budget, your best bet is to buy Gold coins. While bullion gold bars are equally good, Gold coins have an edge because of their small size and weight, which means they can easy to store and carry.
