According to many sources, the time is right to invest in precious metals.
And the Financial Times website says that the top 10 performing mutual funds in both the USA and Europe are all precious-metal funds. If you are looking to diversify your investment portfolio, then buying gold bullion is often considered to be a way to safeguard your financial security.
The price of gold is correlated with the success of stocks and shares, as when the price of stocks and shares is high, the price of gold and other precious metals is usually low.
When the price of gold is higher, stocks and shares typically perform lower. So if you are looking to make an investment in gold bullion or other precious metals for the first time, you will want to educate yourself and make sure that you ask the right questions.
Questions to Ask
Where is the gold bullion made? –Ideally, you will want to purchase a 100% authentic Australian gold bullion bar, or bars when making an investment, so it is important to ask where the gold is smelted.
What is the reputation of the dealer? – It is important that you choose a reputable gold bullion dealer who sells bullion bars that are accepted throughout the market. You can easily use the internet to research each company and find out their reputation.
Can your dealer store your gold? – If you do not have secure storage or a safe deposit box, then you will need to find somewhere safe to store your gold bullion. Many dealers will offer this service, but you will need to compare the costs as these can vary greatly between different companies. It is important that you have somewhere secure to store your investment as if it is lost or stolen you will most likely lose it all.
Can you insure your investment? – It is important that you protect your investment so that you do not lose everything if your gold is lost or stolen. When you take out your insurance policy, you will want to ensure that your investment is insured for the value of replacement, and not the value that you purchased the gold, as these can vary quite drastically over time.
Will the dealer buy back your gold? – If there comes a time that you may wish to cash in your investment, you will need to find a buyer for your gold. Being able to sell the gold back to the dealer who supplied it and stored it for you makes this process easy. However, it is important to confirm any charges that the company may have before purchasing your bullion from them.
What are the Hallmark charges? – Each dealer will usually charge different hallmark stamp fees when buying and selling gold, so it is important that you shop around to source the best deal possible.
As with any other investment, make sure that you do your homework and look at all options before making a decision. Take your time in making a choice and choose the dealer that ticks the most boxes. Investing in gold bullion is an excellent way to diversify your portfolio and secure your financial future, so make sure that you look after your investment properly.