Buying Gold

I’ve heard a lot of talk about gold the past few months. Some people are predicting gold at $750 per ounce, while others are predicting some outrageous prices such as $3000 per ounce. Gold currently stands at about $545 per ounce.

A smart investment decision would be to keep some – not all and not a large percentage of your investments – in gold. At $545 an ounce, I think the price may be inflated a little and I personally would wait for a better entry price, under $500 and closer to $400 per ounce.

Many people I talk to would like to purchase gold bullion but do not know where or how to purchase it. Once place where you can buy gold online is Kitco, an online gold buyer and seller marketplace. The gold prices at Kitco are slightly inflated so that they can make their business profits, but the inflation is minimal. And, Kitco will send you the actual gold coins or bullion bricks you purchase. You are not purchasing gold stored in a vault somewhere, you’re purchasing gold that you can put in your own safe. Or, if you so desire, you can bury it like a pirate.

I have a friend who is in his early twenties who has been purchasing gold coins every month since the day he was born. His father purchased the gold coins for him when he was a baby and still growing, until my friend had the ability to purchase gold coins on his own. Needless to say, he now has a solid financial foundation. He has also made some good profits since he began 20 years ago, if he were to sell all his coins today.

Setting aside part of your paycheck to purchase a few gold coins each pay period has two advantages. First, you’re building a financial foundation of real assets that will grow over time. Gold’s greatest reward comes with long term investing. Secondly, you’re diversifying your investment portfolio. Investing and trading is not strictly about stocks. Investments and trades take many forms, including stocks, bonds, mutual funds, bank accounts, gold, other precious metals, real estate, and business ventures. Diversifying your investments secures your financial future.

Let me make this clear, I am NOT saying you should put all your savings and money into gold. I’m saying you should buy gold as my friend has done. Buy few coins a month, each month. As the old saying goes “slow and steady wins the race.” Sure, you can put all your money into a penny stock and hope it goes up 1000%, but that’s foolish and illogical thinking. Growing your investments takes time and a clearly defined financial strategy. Gold should be included in your investment planning and strategy.

Update:

A friend just told me the Kitco website was down. Quite unfortunate as this has been a realiable website for me in the past, mostly to get gold and precious metals prices from.

Another online gold buying and selling website you can use is A-Mark Precious Metals. You can also get free gold and precious metal price quotes from A-Mark if you’re not interested in purchasing.

Yet another website for gold price charts, gold news, and other information is TheBullionDesk.