Gold investing is unlike any other form of investing. Gold does not earn a pre-determined amount of interest, and gold does not pay yearly dividends. Most investments are owned on paper or are logged into a computer but with gold you can actually hold the investment itself in your hands. From 1981 until 2001 gold was in a bear market. Since that time gold has clawed its way up from $252 per ounce and is currently valued at 400% more than its price in 2001. Making money by investing in gold is not something you can do in your sleep, but it isn’t brain surgery, either. Certified Gold Exchange analysts have identified 10 habits that are most closely associated with successful gold investors. These “gold insiders” practice the following 10 habits to gain a fair, legal and ethical advantage that they use to grow their portfolios while other investors pull their pockets inside-out and shrug their shoulders. Put the following 10 habits to good use and you can be a top gold insider, too.
- Search For Discounts While Others Pay The “Sticker Price”
Dealers that allow you to buy gold online usually have higher prices because they know that most people would rather pay more than risk getting suckered in by a smooth-talking salesman. Reputable gold dealers often sell bullion for 1-5% above the gold spot price, and many of those same dealers offer significant discounts off PCGS and NGC price guides. Depending on how much gold you are going to buy you may also be eligible for a large-volume discount.
- Check Gold Dealer Reputations Until Your Computer Overheats
You can’t be too obsessive about gold dealer reputations. Take advantage of the Better Business Bureau (www.BBB.org), The Ripoff Report (www.RipoffReport.com), Scambook (www.Scambook.com), TrustLink (www.TrustLink.org) and Yelp (www.Yelp.com) to see if your prospective gold dealer has any skeletons in its closet. If you don’t discover any dirt after searching these websites, as well as performing a Google or Yahoo search of the company’s name, you may have found your future gold dealer.
- Define Clear Goals Before Buying A Single Ounce Of Gold
Buying gold without first setting your investing goals is like packing your suitcase without knowing your destination. You might need bullion, certified coins or a combination of both. Maybe you need more silver than gold, or vice versa. It’s counterproductive to purchase something that may not help you achieve your goals, and a good gold dealer should know which products are best for your specific situation.
- Become Familiar With Gold’s History
Do you know the history of gold prices? Do you know all of the facts surrounding gold bullion confiscation? Can you explain the Gold Standard and what it has to do with our nation’s current economic situation? No, this is no history exam; this is information that every true gold insider has under their belt.
- Prepare For The Unknown
Preparing for the unknown is what gold buying is all about. It does not mean getting paranoid or making rash financial or life decisions, and it doesn’t mean spending all day, every day obsessing over what might happen tomorrow. Preparing for the unknown means diversifying, planning ahead and staying aware of short-term trends while keeping your eyes on your long-term goals.
- Bullet-Proof Vulnerable Retirement Accounts
One of the best habits that successful gold investors have is a tendency to keep a close eye on their retirement accounts. Although the last few years have been hard on retirement accounts there is still a tremendous amount of money left in IRAs as well as 401(k) and 403(b) plans. The IRS allows investors to buy physical gold with retirement account funds, and you can even take delivery of the gold if you so choose (penalties and/or taxes may be incurred).
- Eliminate The Risk Of Buying Counterfeit Gold
How embarrassing would it be for you – or those you leave your gold to – if you spent years filling your safe with fake gold? It has happened before, many times, and it will keep on happening as long as people continue to break two simple rules: buy from a reputable gold dealer and buy internationally-recognized products. Your gold dealer should have at least a decade in the business with no history of counterfeit products. If you buy bullion then stick with easily-recognizable brands such as Credit-Suisse and Johnson-Matthey, and if you are a certified coin buyer then insist on either PCGS or NGC-graded coins to protect yourself from fraud and a failed investment.
- Discover A Dealer’s Real Agenda
Top gold insiders know that a dealer’s words don’t always match their intentions, so test them early and often. Ask about products that you know have a high margin and see if the broker takes the bait. Mention that gold is new for you and see if you receive a higher quote. State that you know gold will go to a certain price and if the broker agrees without reminding you that nothing is guaranteed then your search for a trustworthy gold dealer continues
- Don’t Forget About Uncle Sam
Gold insiders value the yellow metal for the privacy it permits, but anyone who makes money from selling a gold investment is required to pay taxes. Tax-deferred does not mean tax-free, so if you invest in gold and sell that gold for a profit then the IRS wants to know about it.
- Buy Logically, Not Emotionally
Top gold insiders make it a habit to evaluate their potential decisions as either emotional or logical. An emotionally-charged decision might seem like the smart move at first but down the road it can haunt you. Logical decisions can be tough to make but in the long run it will be satisfying to know you invested with your brain and not your heart.
If you can learn to make each one of these habits your own then you will be giving yourself a tremendous chance at success in the gold market. It is impossible to guarantee one profit in gold but implementing the aforementioned best practices will help you to have a solid shot at seeing improvements in your portfolio, and you’ll probably sleep better at night, too. For a free hard copy of this report call the Certified Gold Exchange directly at 1-800-300-0715 or better yet, call and ask to speak with one of our non-commissioned certified gold advisers. If we can’t provide you with the service and/or goods you need then we will do our best to point you in the right direction.