Buying Gold – These Are The Biggest Investor Mistakes!

Buy gold: If in doubt, prefer smaller denominations (1 Ounce, 1/2 ounce) they can be liquidated later more easily than, for example, a 250-gram gold bar (photo: gold reporter).

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Buying gold is the order of the day

The price of gold rose by 22 percent last year – calculated in euros. This gold rally and the increasing awareness of many investors about increasing financial risks in old-age provision as well as immediate fear of crashes have also driven many new investors into gold. Even if the precious metal prices consolidated somewhat recently, the general conditions have not changed. The world is pumping and this credit bubble will burst at some point.

sources of error

If you urgently intend to buy gold, you can do something wrong. Too inexperienced, too reckless, too greedy … It’s about the purchase of gold coins and gold bars. And as the past few weeks have shown, it can be problematic if the gold supply in precious metals trading is suddenly very limited. In order to protect new gold investors from the worst mistakes, we have summarized five most important tips.

1. Buy gold for pure speculation

The gold price is subject to strong fluctuations. Anyone who chooses the investment horizon too narrowly or relies on gold derivatives can quickly be disappointed. On the other hand, the euro gold price has increased by an average of more than 7 percent per year since 1970. In any case, gold should be seen as long-term insurance against loss of value. Because: Gold cannot go bankrupt. It is not bound to third party claims. Gold is debt-free money!

2. Buy gold when everyone does

Anyone who buys gold regularly, regardless of the current price and regardless of the current hype, will reduce the average costs of their gold insurance in the long term and will always be there when prices increase. Buying only in hype and just out of panic is never a good idea.

3. Buy gold without mind

Before you invest your money in gold, you should find out about the properties of the various gold investment products, their “normal price” and suitable sellers. You will find the most important information in the “Buy Gold” section. Pay attention to the so-called premium. This is the percentage premium that you have to pay for an investment product beyond its pure material value (the current gold price on the stock exchange). Examples of a usual premium: 1 ounce gold coin (approx. 4%), 100 g gold bar (approx. 1.5%).

4. Buy gold somewhere

Apart from the gangs of fraudsters who keep cropping up and who have already knocked a lot of customers off with fake online shops: buy gold from well-known precious metal traders and, above all, don’t blindly hit any cheap online offer. In our dealer portraits you will find some reliable suppliers from whom you can also buy precious metals conveniently and safely online. There you will also find the best purchase prices for your once purchased gold coins and gold bars.

5. The wrong gold product

Adjust the gold products you have purchased to your personal income situation and think about the later sale in units when you buy them. For example, if you own a 500 gram gold bar, you are also forced to sell it later in one piece. Not very practical! Gold coins of ½ ounce or 1 ounce can be sold much more conveniently – depending on capital requirements – even if these investment products are a bit more expensive (premium).

Note: The aspects listed are only a rough selection of what should be considered as a gold buyer. Long-term oriented gold investors can find further information in our guide “Retirement provision with gold”. It also includes an extensive list of recommended stationary precious metal dealers.

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