Many people invest in gold in order to beat inflation, as the price of gold usually rises in due course of time at much better rate as compared to the other investments. However, if you are interested to invest in gold then avoid committing following mistakes, which can result into lower profit than expected.
- If you want to buy gold coin then do not buy when every body is rushing to buy. Usually, when many people are buying gold then there will be more demand than supply and you will end up buying at higher prices. As a matter of fact, you must sell your gold during this time.
- Avoid putting all your money on gold coins. Gold coin is not like dividend paying instrument or asset and quite often its price may go down and reduce the value of your investment. You should not put more than 5 per cent of your savings in gold.
- Many people often end up buying gold coin from certain unauthorized sources where there is a chance of getting fake golds. Such people offer lots of discounts to attract you and you may lose your money this way.
- Never buy gold as per the advice of your relative or colleagues. They must be having some different investment goal and advice you based on their own perspective. You must study the market and make decision.
- Avoid buying gold without knowing current price of the gold. Many people often end up buying gold without doing any research and end up paying more price than what is the actual value on that particular day.
- Avoid buying any rare coins without having any knowledge about numismatic value as these types of coins need expert’s eye to access the real value of such coins.
- If someone suggests you to buy rare gold coins for investment purpose then never buy such proposals. Such numismatic coins are not meant for investment but only meant for collection. Its price is not based on current price of gold but its rarity.
- Few investors prefer to keep the purchased gold at some offsite vault or certain banks. Such decision can cost you a lot if due to some reason banking system collapses.
- Many people often prefer to buy gold stocks or gold bonds instead of buying real golds. All these alternate systems may not follow the exact rates of gold in the market. Investing in such alternate system needs lots of knowledge about the market.
Gold is certainly a good investment however you must invest in it prudently.