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Big decisions usually come after lots of tiny steps. When securing your future by buying precious metals like gold, a single wrong move can cost you. When you take a decision to invest in anything, you should know as much as you can about the process. When you know all there is to know about investing in gold you will be better prepared and you will be less likely to make mistakes like the ones outlined here.

1: Buying only when gold is popular

There’s never really a “wrong” time to buy gold. But the basic dynamics of supply and demand apply. Supply has to do with how much gold the market can offer while demand refers to the amount that consumers actually has. If the supply is scarce when demand for the product is high, then it will be more expensive to buy gold. If you buy gold because it is popular you could miss out of certain lower priced products. For example in 2009, the U.S Ming ran out of its 1 oz. Gold American Eagle. The demand was so high the mint could not make a proof version of the coin. The same thing happened with the Gold America Buffalo Coin. The US Mint stopped production in 2005 and then sold their 1 oz. proof coins in 2015.

Before you buy gold you should identify your reasons for buying. What are your financial goals? What types of gold coins interest you and why, how much do you have to spend on gold? Savvy gold buyers purchase gold when it is less popular to do so when the prices are lower and there is more types of gold to choose from.

2: Only buying one type of gold coin

Gold coins are different in many ways. Having a variety of coins in your portfolio will make it more diverse which is good. Gold coins are different in size, design, purity, origin and reputation. Sizes range from 1/10 oz. To 1 oz. Designs can be inspired by nature, music, historical events, pop future and other themes that make each coin unique.

You should have combine gold bullion coins and gold proof coins in your portfolio to weather the good and the bad times better when they do come along.

Match your purchases with your financial goals

If you would like to cash your gold in in the near future, you should start by buying small 1/0z gold coins. They are right and east to carry around. If you pan to pass your gold down to your children, choose proof gold coins that have been graded by a professional. Because of their rarity and insulation from market volatility, certified gold coins have a higher potential when they are held over a longer period of time. Their scarcity increases their potential.

3: purchasing gold from unreliable sources

A lot of people buy gold from anyone who is selling especially when the market is in a frenzy. Do not buy gold from an unverifiable sources, you can fins yourself being a victim of a scammer. Be wary of gold dealers who offer free storage or delayed delivery. They may not be legitimate and you may never get the gold you paid for.

Do some research bon the company you are thinking of buying gold from. Ensure that they have the proper affiliations and a good track record. If they are going to send the gold to you via courier make sure that they offer insurance and secure shipping.

Consider the following before making the decision to buy gold from a particular dealer:

Are they easy to find? Do they answer when you call or email?

Do they take the time to understand your financial goals?

Do they take the time to answer any questions you may have?

Honest and knowledgeable gold companies do more than sell gold, they provide market insight and will help clients build a portfolio that supports financial goals.

Sources:
http://www.goldbullionpro.com/top-10-mistakes-people-make-while-buying-gold-coins/
https://coinvalues.com/blog/mistakes-to-avoid-when-buying-gold-coins

Gold News Australia