Many people will own gold as gold jewelry is popular with people all over the world, but there are far fewer people that invest in this shiny yellow metal. Gold can be an excellent investment vehicle, but when you are investing in gold bullion for the first time, there are many questions that you want to ask.
Below are some of the most common questions that people ask to help you on the way to investing in gold bullion for the first time.
How Does Gold Investing Work?
The process of investing is simple, and you can buy your gold bullion from City Gold Bullion or any other reputable dealer near you. Your order will be delivered, then your investment is complete. Over time, the value of your gold will increase, and historically it sits above the rate of inflation, so the longer you have your investment, the more it is usually worth it.
Is Investing In Gold Bullion Safe?
There is a risk with any investment, and the price of it can drop sharply as it is a commodity. However, whenever there have been drops in the value of gold, it has consolidated and come back stronger, so if you are patient, your investment will usually increase over time.
How Do I Store My Gold Bullion?
You have a few options that are open to you when it comes to storing your gold bullion. Firstly, you can purchase your bullion from a company that also offers secure storage, and have them look after your investment for you, for a premium. You can also use a safety deposit box to store your gold bullion, although the more gold you have, the bigger the safety deposit box you require, and the more it will cost. You can also invest in a safe for your home to keep your investment and other important documents and possessions in, and there are no ongoing costs with this option once you have paid for the installation of your safe.
Is There A Limit On How Much I Can Invest?
If you have the money to pay for it, you can purchase as much gold bullion as you want. You may find that there are lower limits on what a gold dealer will sell, so your investment may need to be at a certain level.
What Charges Are There?
There are going to be additional charges for the purchase of your gold investment, and these will usually be clearly displayed by the dealer from which you are doing business. You will pay the price per ounce at the current market value of gold, which is dictated by the market. Additionally, there will also be a percentage commission that will cover the costs of the dealer, including delivery and insurance.
Will You Buy My Gold?
You will find that most gold dealers who sell you gold, will purchase your surplus gold investment from you as well. It is vital to realize that the buying price and the selling price is different. You can check the latest market price for gold bullion online.