Here are 5 gold tips for buying that can help you get the best deal available.
1. Don’t Use Credit, Buy with Savings :
Anyone who wants to buy gold must save first before they invest. That is the backbone of a healthy economy. The current system relies on debt, credit, and consumption – the exact opposite of a healthy economy. Don’t use the bad habits that have created this system to purchase the antidote to the system.
If you buy gold, use your savings, put it on the side, and make sure that it is fully yours. Don’t take out credit or speculate to buy gold. You never know what the market is doing and you may have to pay back your credit before the price of gold rises. Use your savings. You have to give up certain wishes today so that you are able to profit from your investments in the future.
That’s how an honest system works.
2. Store Some Coins Near You :
As I mentioned earlier, you should always have access to some gold. You can put it in a safe at home or bury it outside – whatever you want – just make sure you can find it. The key is to have direct access to your gold if something happens.
However, you shouldn’t store all of your gold nearby; just what you want to have available in a crisis situation. You should have your insurance outside the country. The United States, for example, confiscated gold back in 1933 under Franklin Roosevelt. The same happened under Mussolini in Italy, under Hitler in Germany, and under Stalin in the Soviet Union.
Switzerland, on the other hand, was the last currency to go off the gold standard. They have always had a currency — even during wartime — that could be exchanged for physical gold. And the politicians don’t have the power to confiscate gold there.
So, as a general rule, if you have over $50,000 to invest in gold, store it in a safe jurisdiction. For anything less than that, keep it nearby.
3. Only Invest Money You Don’t Need for Five Years :
We don’t know when the system is going to crash. If you believe the people who are saying that the system is going to collapse in the next six months, you’ll make bad financial decisions. Don’t believe them. Don’t speculate.
Only invest money that you really don’t need for at least the next five years. Anything can happen in five years. And in 2020, we’ve learned that anything can happen in five short months. While it is very likely that the price of gold will be higher in five years than it is today, it’s harder to know what will happen in the short term.
If you want a good return, you’ll need to wait at least five years. If the system crashes before then, you will be fine, but don’t use money that you will need in three, six, or even nine months’ time because we don’t know where the price is going in the short term.
An ounce of gold is always an ounce of gold, but the price of the fiat is what fluctuates. No matter what, there is a very high probability that, after five years, you will be really happy with your investment.
4. It Must Be Under Your Direct and Unencumbered Ownership :
There is an old saying, “If you cannot hold your gold, you don’t own it.”
This is important to understand, especially when it comes to the average person on the street who doesn’t have that much money to invest in gold.
If that is your situation, you should buy small gold coins directly and store them nearby where you live so that you have quick access to your gold storage in a harsh crisis scenario.
If you have more money and you really want to allocate parts of your wealth into physical gold. It makes sense to go into jurisdictions that have strong private property rights. The best jurisdictions you can find these days are still Switzerland and Liechtenstein, especially when it comes to physical precious metals stored outside the traditional banking system.
Just make sure that whenever you select a gold storage company, you know that you are the owner. The gold belongs to you directly, and that the company you are dealing with cannot pledge it or lease it out. That is vital.
5. Only Buy Physical Gold :
Anyone investigating gold and silver needs to understand that its basic function is as money. Gold was used as money for 5000 years. It was only in 1971 when Nixon went off the gold standard that the whole world began to transition into the fiat system using paper money that is not backed by gold. Before that, all paper money was backed up by gold.
Now that the world’s currencies are not backed by government-held gold, the paper market for gold has grown immensely as people seek to buy money that is backed by a physical commodity. This is especially easy to see if you look at the commodity exchange market – COMEX – where they sometimes have over 500 paper claims for every ounce of physical gold regularly available at the COMEX.
The leverage in the system is huge because so many people believe that they own gold on paper. However, if they want to claim that money, they will quickly find out that there is not enough physical gold available. That’s why, when you’re buying gold as an insurance against the crash of the monetary system, make sure that you have it physically.
Don’t buy it on paper.
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