The value of gold has been a valuable commodity for investors hedging against a potential recession.
The very word “recession” causes the price of gold to go up. Today, recession fears are still dominating the news, and many people want to be prepared.
For some, that means selling their gold including old jewelry, and others want to buy gold for its value during financially unstable times.
Be Aware of Scams
Whenever there is the threat of a recession, and the price of gold climbs, scam artists seem to come out of the woodwork. Some people will want to sell they have whether it’s jewelry or coins, and other people will want to buy gold as a protection.
The scam artist wants to take advantage of both opportunities. You may be contacted by a telemarketer selling non-existent gold or a dishonest gold dealer may offer you top dollar for the gold you have, but pays you far less than it is worth.
Another concern when gold is selling so high is theft. Gold jewelry, watches, and coins are prime targets for thieves.
Safe Ways to Buy Gold
If you want to have the security of gold in uncertain financial times, stay away from telemarketers and any other dealer who wants you to buy gold without even seeing it and want to store it for you.
Only buy gold that you can hold in your hand, or on secure trading platforms through stocks and ETFs.
You can purchase gold coins (the American Eagle) produced by the United States Mint and select the investment-grade. You can find a list of registered dealers on the U.S. Mint’s web site. Once you have physical possession of the gold, store it in a safety deposit box or in a strong fire-proof safe in your home.
Another way of owning gold is to purchase shares in an exchange fund that owns and holds the physical gold. No matter how you choose to purchase your gold, always remember there is risk involved.
Gold prices can drop as quickly as they can rise, and you can lose a great deal depending on the amount of your purchase. Many investors think of gold merely as an insurance policy for a short period of time.
Buy it as low as you can, and sell it when it goes up in value. It should never be more than a small portion of your holdings. There are plenty of buyers for gold, but you must exercise caution when selling. You need to know the value of the gold you have.
24 karat gold is closest to being pure gold. Before you choose a dealer to wok with (buying or selling), check them out. Look online for reviews, chamber of commerce records, and look for organizations they belong to such as Jewelers of America or American Numismatic Association.
These organizations have a code of ethics their members are expected to follow. Running a physical storefront doesn’t make a business honest any more than operating from a website business makes one dishonest.
Remember, you are always taking a risk when you invest in gold and other precious metals. A small amount as a hedge against recession fears can be a good temporary investment, but the price of gold will go up and down and you could lose money.
In a serious recession, bartering is a likely action people will take, and tangible items such as food, clothing, and personal care items can be more easily traded than gold coins.
To better navigate the precious metals market, contact Saint Vincent Holdings and start trading with confidence across all financial markets.