More and more people are choosing to invest in the 2020s as inflation continues to rise. Have you joined in on the fun?
While stocks and crypto are the most popular investments at the moment, many people are still investing in gold. Before you join them, we want to talk about a few common gold investing mistakes so you can start off on the right track.
Read on to learn more.
1. Trying To Get Rich Quick
Because investing is such a hot topic right now, many people who are new to the game have started their investments with the intention of getting rich as soon as possible. This is a huge mistake, especially when it comes to investing in gold.
The price of gold is steady. This is what makes it such a good investment. It’s a good hedge against inflation.
When you invest in gold, you’re not going to get routine or short-term gains. You may even experience dips in the cost of gold from time to time. Many people see these dips, panic, and get themselves out of the market.
When you’re investing in gold, you should expect long-term gold investment profits rather than immediate gains. Yes, it takes longer, but it’s safer and more worthwhile.
2. Relying on Jewelry
Many people start investing in gold with jewelry that they either find at secondhand shops or that they inherit. There’s nothing wrong with holding onto gold jewelry as a potential investment, but keep in mind that the value of jewelry is different than the value of solid standalone gold.
When you buy gold jewelry, you’re not just buying gold. You’re buying other metals (if the gold isn’t 14k or higher), gems (real or fake), and other features that investors and buyers are uninterested in.
When you buy gold bars or coins, you’re getting solid and pure gold that you can sell for higher prices in the future. The amount of actual gold in a piece of gold jewelry is far too low to make it a solid investment on its own.
3. Buying from Bad Sources
When you first start your gold investment strategy, it’s likely that you’re going to prioritize buying low and selling high. While this is always your best bet when investing in anything, it’s tricky when it comes to buying physical gold.
Gold rarely goes “low,” and if you see a price that’s lower than what you expect, it’s likely that the gold is coming from an illegitimate source. You may be getting gold-plated or otherwise fake coins.
Make sure that you vet your sources before you make your purchase.
4. You Use Gold As Your Only Investment
Any investing professional will tell you that you need to diversify your portfolio. Yes, gold is one of the safer investments out there, but that doesn’t mean that it should be your only investment.
Pad your portfolio with reliable stocks and ETFs.
Avoid These Gold Investing Mistakes
If you’re trying to build wealth over time with gold, you’ll need to avoid these common gold investing mistakes. Remember: diversify, vet your sources, don’t rely on jewelry, and don’t expect to get rich overnight.
Good luck on your investing journey!
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