subject: The Best Approaches Of Gold Buying And Selling [print this page] One of the most regular questions I face from newcomers is: Is it very late to trade gold? My answer is constantly clean: Never! And this is not associated to the cost of gold, you can invest in precious metal at any time regardless of what the gold price is.
The most important rule is putting a set percentage of your trading portfolio towards gold per month no matter the precious metal rate.
The most typically used percentage is 3-10% depending on the force of the trend, this percentage may be increased to up to 20% if the trend is too powerful.
In this guide we will give you some guidance that you should keep in your focus before taking the initial step in gold and silver investing.
Which form of gold to buy: Buy gold and silver in the cheapest form (within reason). Virtually all forms of yellow metal are more expensive than the intrinsic value of gold and silver in it by a specific percentage. The lower this percentage, the less costly the gold and silver form is. For instance, if a gold coin contains 30 grams of gold and silver, the price of intrinsic precious metal in the coin can be estimated by:Price of yellow metal in the coin = 30 x the price of one gram of precious metal.On the other hand, the price of the coin will be slightly greater than this be some percentage. If you buy yellow metal for investment, it is always superior to buy gold forms that are the the very least costly.The cheapest forms of gold and silver are in this order: gold bars, krugerrands and sovereigns. Other gold and silver forms and coins are more expensive and really should be avoided.Yellow metal bars, krugerrands and sovereigns, this the order according to the lower cost, however our suggestions for you is to purchase in the invert order i.e. sovereigns, krugerrands, and gold bars due to other factors that affect our choice. For instance, Gold Sovereigns are a smaller sized, more attractive, more historical, and likely better regarded coin than krugerrands, consequently it is worth paying a slight added price over krugerrands, to buy sovereigns.Krugerrands are the best one ounce precious metal bullion coin. They are available in larger quantities, and they can be purchased at lower fees than any other one ounce bullion coins. Despite the fact that they are not charming, and have no historical attraction, they are a very cost effective way for smaller investors to buy gold.When to purchase and sell precious metal: Buy at low prices and sell at high pricesAs a common rule, it is better to buy precious metal when its price is low rather than high and sell yellow metal when its rate is high rather than low. On the other hand dont wait around for absolute bottom to buy or absolute top to sell, since most often you will miss these points together with the passive influence of feelings on your decision and the higher risk and stress associated with this approach. One of the most well-known methods is to buy precious metal when its rate is within 10% of the bottom and sell gold and silver when its price is within 10% of the top, and I assume this one of the easiest, safest and most effective tactics in gold investing.by: Sergio Ruthenberg
