5 Tips for Investing in Gold

a stack of coins

Gold has endured throughout the ages as the world’s currency of choice. The earliest paper currencies were backed by gold, and humans have used it to facilitate trade for ages, in addition to accumulating and storing wealth.

Therefore, gold is a solid investment avenue worth considering, due to its enduring nature. However, investing in this precious mineral requires proper guidance to maximize your chances of success. Below are five tips you should know before investing in gold.

1. Buy gold that you directly own.


It’s essential to invest in only gold that you can physically access when you need it. Gold coins are an excellent investment since you can easily store them and access your storage in times of need. That being said, you can buy other types as well, but always ensure that your gold is yours and the company you’re buying from can’t hedge, pledge, or lease it out in any way. You can also consider other alternative investment opportunities besides the stock market to diversify your portfolio. Credible alternative investing platforms such as Yieldstreet can help if you’re interested in pursuing alternative investments like these.

Yieldstreet is a digital wealth management platform offering its investors several alternative investment opportunities in alternative asset classes like real estate, fine art, marine finance, litigation finance, and commercial loans. Yieldstreet investors must have at least a $1 million net worth or earn $200,000 annually (or $300,000 combined with their spouse), to qualify as accredited investors. However, thanks to Yieldstreet’s Prism Fund, anyone can make minimum Yieldstreet investments of $1,000 in five income-producing alternative assets. This investment platform also enables you to put money into the Yieldstreet wallet, a high-yield FDIC-insured savings account, in which you can earn interest on funds held on Yieldstreet regardless of your accreditation status. What’s more, the Yieldstreet platform is credible, as evident by many good Yieldstreet reviews, so it’s undoubtedly safe for alternative investing.

2. Buy with savings, not credit.

Saving before investing in gold is necessary, so consider buying gold with only your savings. Using credit and incurring debt in your bid to own gold isn’t advisable, since you may have to pay back your debts before gold prices rise. Several mining businesses continue to satisfy the global demand for gold, so you can undoubtedly have some to buy after accumulating enough savings. Leading mining companies such as Alamos Gold are great examples of such organizations.

Alamos Gold is a Toronto-based intermediate gold producer with diversified production from four operating mine sites in North America. Their Young Davidson mine and Island Gold Mines are in Northern Ontario, and their Mulatos and El Chanate mines are located in Mexico. Alamos Gold, Turkey, has three Turkish projects: the Kirazli project in the Çanakkale Province, the Ağı Dağı project, and the Çamyurt project. The Turkish Government’s lawmakers protested against the Kirazli mine site, alleging Alamos was promoting deforestation and might contaminate the environment due to cyanide use. However, Alamos CEO, Mr. John A. McCluskey maintains that these allegations are false since Alamos remains committed to preserving the ecosystem through forestry projects and social responsibility programs in local communities.

3. Invest in liquid stocks.

Gold is your monetary insurance and a means of building up savings over time. Therefore, buy and store gold on the side instead of making it your main trading vehicle. Since it’s a store of value, your liquid gold on the side will ensure that you can access your investment during crisis periods, instead of running around with kilos of gold. This way, you can use your gold to finance significant opportunities during crisis times.

4. Store some gold in safe jurisdictions.

It’s also prudent to keep your gold in several safe jurisdictions where politics has limited power and influence. Switzerland is a popular haven for gold keeping, since it has a decentralized political system with seven presidents, so states have more power to make their own rules. These states would undoubtedly never allow for the confiscation of their gold, making Switzerland great for gold storage, unlike in countries with centralized systems that can make top-down gold-related rules that affect all states.

5. Only use funds you won’t need for five years.

With gold investing, it’s also advisable to only invest cash you don’t need for at least five years. Although gold prices will likely be higher in five years, you can’t tell what will happen in the short-term. Consequently, you’d have to wait at least five years to enjoy a good return on investment, so use funds you won’t need for at least five years instead of using money that you’ll need in a few months. This is because of the uncertainty when it comes to where gold prices are going in the short-term.

Gold is an excellent investment avenue worth considering for various good reasons. The above-listed points are five helpful tips you should know to guide you on your path to profitable gold investing.

Ahmed Guillen leads OI's editorial staff. He is passionate about professional development and helping our readers navigate starting and enhancing their businesses and investments.

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