Three Things You Should Know Before Investing in Gold

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Looking to diversify your investment portfolio? Perhaps it’s time for you to consider investing in gold. An investment in gold is relatively low risk, and it can help protect your assets in case of another market downturn. Moreover, buying gold supports national interests and jobs. In 2014, U.S. mines produced 211 tons of gold, and national gold circulation and deposits are currently valued around $7.6 trillion. If you are interested in this opportunity, there are three details you should know before diving into the market:

  1. The purest form of gold is 24 karat gold. Gold that is 99.9% (or more) pure is classified as true 24k gold. Most gold available on today’s market is between 99% and 99.5% pure, or close to 24k.
  2. There are two types of gold bars that you can buy: cast and minted. The different categories reflect differences in how the bars are manufactured. Cast bars are formed directly from melted gold, whereas minted bars are cut from a cast bar that has been rolled out to a uniform thickness. A financial advisor can help you decide which version best suits your needs and investment style.
  3. Larger gold bars can usually be purchased at a lower price than normal market value. It’s like buying anything else in bulk! If you buy a 10 ounce bar, a kilogram (32.15 ounce) bar, or a 400 ounce bar, they can generally be procured for a lower price than the spot price of gold. In the United States, gold selling shops typically stock bars up to 10 ounces.

Those are the basics! Buying gold may not be the right choice for everyone, but it can be a great and relatively low risk method for diversifying — and, to some extent, safeguarding — your investment portfolio. As with any significant change to your portfolio, an advisor will help you make the most calculated and beneficial decision for your financial well-being.

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