One Kilo Gold Bars are Appealing, but They’re Not Paramount for New Collectors
When you’re new to precious metals, it may seem like investing requires a fortune the size of a small country’s economy. The reality is that you do not need to buy a large amount of gold to begin investing.
How Should I Start Buying Gold?
You can start by purchasing a small amount of gold and gradually increasing your holdings as you become acquainted with the market and as your resources allow. Many people are used to envisioning a 1 kilogram gold bar as the most common size due to media portrayals, but the reality is most people can’t afford that size, especially when just starting out. Many beginning investors find that purchasing something like a 1 ounce gold bar in TEP allows them to start affordably, without having to worry about additional storage materials.
It is a best practice to diversify your portfolio with a range of assets like gold, silver, and other precious metals rather than putting money in a single investment. This strategy helps to reduce risks and increase your potential for long-term financial growth.
What if I cannot Afford to Buy Gold by the Ounce?
Even if you are working with limited capital, fractional gold like 1/10 oz American Gold Eagles carry all the prestige and proportionate value of the 1 oz Gold Eagles.
If this is not an accessible entry point for your budget right now, there are single-gram Gold and half-gram gold coins available from many mints and manufacturers. Gold foil notes like Goldbacks are available in even smaller sizes and range from 1/20th oz to 1/1000th oz.
Another way to begin a gold investment strategy includes secondary market gold.
Ready to begin investing? Here’s a checklist to make the most of your time, money, and investments.
- Determine your investment goals. Will you be using gold as a hedge against inflation, diversify your holdings, or for retirement in a Gold IRA (Individual Retirement Account)? Defining these goals will help guide your purchases and the products you purchase.
- Research the market to understand what you’re buying before making your first purchase. Learn about the sundry kinds of gold products you can invest in based on your goals and factors that can impact them, including the price of gold.
- Calculate the costs. Educate yourself on premiums, storage fees for physical gold if you plan to purchase physical metals, and IRA-approved gold products if you will be using a Gold IRA. You want to understand and feel comfortable with these costs before spending any of your hard-earned money.
- Diversify! Consider diversifying with other precious metals like silver and other gold assets like ETFs.
- Consult a financial advisor. New investors and investors with limited experience will find it helpful to work with an advisor who can provide guidance. They can help you develop a sound strategy appropriate for your risk tolerance and goals.
