They say “He who wakes up early finds gold.” Though it is just a proverb, it means a lot for those who understand the value of the precious yellow metal as an investment. You must be aware of how valuable gold is, and start investing well in time to make profit, making use of it.
Though as per the records, gold has always overpowered the stocks, and is the safest investment, one must still know what they’re going before entering any market. It is ultimately your knowledge about the market, and your investment intention that decides it all.
Here are just the 10 basic and most important beginners’ tips to investing in gold:
1. Find the right time to invest
To begin with, try to buy gold when the stock market it high, because at that time, there are chances you will get gold at comparatively lower prices, which in turn will make it profitable for you in the long-run.
2. Always aim for a long-term investment
Precious metals, especially gold and silver, are most profitable in the long-term, than in quick buy and sell transactions. Technically, it is advisable to hold in for at least 5 years in order to average out your cost of purchase.
3. Select the investment options as per your objective
For instance, if you’re looking for long-term investment with higher profits, you can deal in Gold bullion, wherein you can study the market and act accordingly. Whereas if you just want to safeguard your money with gold, the better option for you is to buy gold coins or bars.
4. Decide how much of your portfolio goes to gold
Aim to allocate at least 10% of your investment portfolio to gold. This makes sure that your portfolio is safer and more balanced against market fluctuations.
5. Gold Bullion is a perpetual asset
Never forget this ground rule – a hundred rupee note may be an ounce of gold today and worth nothing tomorrow. But an ounce of gold today, will always be worth an ounce of gold.
6. Take advice; listen to experienced investors
It never harms to take advice, especially when it comes to investing your hard-earned money. If you’re confused regarding your investments, take help from experienced investors, who will be able to clarify your doubts.
Remember, a confused investor is a danger to his own portfolio. Don’t be that confused investor, clear your doubts in the beginning itself.
7. Never fret the day-to-day fluctuation
Remember, you are here for the long-term. If you invested in gold bullion yesterday and the price falls tomorrow, there’s no need to worry. You have a lot of time to recover, and there are probably even no real losses as such.
8. Buy only from a reliable, reputed seller
Buying gold directly from the refinery would be even better. You can do this if you buy gold from Augmont app, which you can install here. Investment with peace of mind is the best kind of investment.
9. Patience is the key
When investing in long-term assets like gold, one needs to have patience, study the market, and then take actions. Being impatient or impulsive can never help when it comes to dealing with gold as an investment item.
10. Invest as much as you can afford
Start small, like you would do with any other investment. Don’t aim too big or commit too much in the very beginning. Give it some time, and take a breath, let your portfolio settle down, average out the costs, and then start investing more. Once you feel confident enough, invest a little more, and aim for profits over safety.
Now that you are equipped with the basic knowledge about gold, are you excited to start investing in it and make your money worth gold, literally? Go on, and if you’re stuck, our experts are always there to give you that little push.