Advantages of buying gold.

 

 

Are you thinking of buying gold?

 

Gold is actual money, it has been used for a long time before paper money and is a world currency. Buying gold has intrinsic value unlike stocks or bonds that may lose value in a market collapse. People believe this type of investing is leverage against currency stock, and bond markets. Investing in gold is one way to diversify a portfolio and add stability to currency crisis.

 

Different kinds of gold investments.

 

Don't want to buy physical gold? There are other options that will have the same stability of the gold market, and no worries for storage or shipping.

 

-Mining stocks such as mining companies compare almost like the gold market, and is a way of being involved in both the gold and stock market. There are quite few mining companies on the stock exchanges and can be compared to gold price history to stock price history.

 

-Bank gold accounts is where a bank can hold and store gold in a secure location for you with no hassle. This type
of account can be allocated which means having specific bars assigned to you or unallocated which is you and other
investors holding gold that is not assigned any specific bar to a specific investor.

 

-Gold ETF and Futures and Options are other market type of investments that can be made without having to own physical gold.

 

 

When to buy gold.


Finding out when to buy gold can be a challenge. A financial advisor can help you stay on top of gold prices, but finding one who's knowledgeable in the market is a guessing game. Most financial advisors are educated on stock markets and bond markets.

 

To find out the best time to buy do some homework and monitor the London fix. The fix is a benchmark throughout the market. The largest gold bullion banks in London has members that meet twice a day morning and afternoon London time and agree on price of gold to clear outstanding orders.

 

where to buy gold.

 

Now that you have looked up the price and decided that its time to buy gold, finding the best place to buy it is the next step in investing. Buying gold bullion or stock is not a simple process, an investor will want to find the best discount price and place to buy coins and bullion.

 

The Better Business Bureau can help find reputable gold
dealers, this is the time to shop around and find the best price offered. When buying local is not an option, buying online is the next best thing. Buying online is a great way to buy wholesale, but be aware what kind of gold you are buying and check the sellers credentials before you buy gold online.

 

Tax and Profit

 

When investing in gold, it's a good idea to find the tax implications of this type of investment. Gold will not fall
under the usual capital gains tax rate. Physical gold is considered collectible rather than an investment by the IRS.


Buying gold and investing in gold for less than a year before you sell it, is considered ordinary income and taxed accordingly. But holding it for more than one year and selling for a gain it will be taxed at the MAXIMUM rate of 28%, almost double the stock market gain rate of 15%.