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3 Tips on How to Buy Gold

By , Money Morning

Investing in gold is confusing to many people, and it shouldn't be. There are many ways to buy gold and most of them are fairly straightforward.

We are currently in an unprecedented gold rush, where investors in record numbers are scrambling to buy gold in every variety. Money Morning Global Credit Strategist Michael Lewitt believes we are headed for a "Super Crash" and says "right now is the perfect time to buy gold."

If you're ready to take the leap, here are three tips that will help optimize your gold investment.

Before You Buy Gold, Determine What You Want to Buy

When most people think of buying gold, they imagine piles of coins in a lockbox or stacks of shiny gold bars in a safe. While these are options, there are several ways to buy gold:

Diversify When You Buy Gold

Diversification is important in any investment portfolio and is a particular consideration when you decide to buy gold.

It's generally recommended by the experts that you allocate between 10% to 30% of your assets in gold. Money Morning's "The Essential Guide to Buying Gold & Silver" has a recommendation of owning $1 of gold for $10 you have in bonds.

Choose the Right Gold Dealer When You Buy

When you decide to buy physical gold of any kind, do your homework before selecting a gold dealer. Because sellers of gold add a premium over the spot price, your success as an investor could depend on your selection of the right gold firm.

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The company that you choose should have a solid track record in the business with good reviews from prior clients. Also, inquire about shipping charges as this will impact the final price per ounce that you'll pay for your investment. The gold dealer that you select should be professional and have no issue with answering questions and concerns promptly and courteously.

Whether you are more comfortable with physical gold that you can store in a safe place or with paper gold that is more liquid, this precious metal investment has become a popular one. In an age of economic uncertainty, investing in gold provides many benefits.

To learn more about precious metals and gain more insight on how to buy gold, download our report: The Essential Guide to Buying Gold & Silver.

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