6 Things You Need To Know Before Investing In Gold / Commodities / Gold and Silver 2022

Investing in gold is a smart investment. But why? Gold hasbeen valued for centuries and for good reason! It's rare, durable, and can beused to make jewelry or electronics. Plus, it's not affected by inflation so nomatter what happens with the economy it'll always have some value. But beforeyou invest in gold there are a few things you need to know - what type of goldshould you buy? How do you store your gold? What if the economy takes anotherdownturn? Learn more here!

1. What Type of Gold Should You Buy?

There are two types of gold that you can buy - physical goldand paper gold. Physical gold is what most people think of when they think ofinvesting in gold. You can buy bars, coins, or jewelry. Paper gold is a bitmore complicated. It's essentially a contract that says you own a certainamount of gold, but you don't have the gold in your possession. The most commontype of paper gold is ETFs (exchange-traded funds) and the precious metals IRA gold.Additionally, IRA provides an easy and efficient way to invest in gold.

2. How Do You Store Your Gold?

If you're buying physical gold, you need to figure out how tostore it. The most common way is to keep it in a safety deposit box at yourbank. You can also buy a home safe, but make sure it's fireproof! If you have alot of gold, you may want to consider storing some of it in a vault. Paper goldis much easier to store - it's just a piece of paper! Most people keep theirpaper gold in a brokerage account or an IRA. Storing gold also comes withinsurance considerations. You'll want to make sure your gold is covered in caseof theft or damage. Additionally, if you're storing gold at your home, you maywant to consider getting a rider on your homeowner's insurance policy.

3. What if the Economy Takes Another Downturn?

While gold is a smart investment, it's not without risk. Theprice of gold can go up and down just like any other investment. However, goldtends to hold its value better than other investments during economic downturns.So if you're worried about another recession, investing in gold may be a goodoption for you. Just remember to diversify your portfolio so you're not puttingall your eggs in one basket. For example, you might invest in gold, stocks, andbonds. Or, if you want a riskier portfolio, invest in crypto as well. Also,don't forget to monitor the market and gold prices so you know when to buy andsell.

4. What Are the Taxes on Gold?

The good news is that there are no taxes on gold! You can buyand sell gold without having to pay any taxes. However, if you use gold ascurrency (instead of US dollars) then you will have to pay taxes. For example,if you use gold to buy a car, you'll have to pay sales tax on the purchase.Taxes on gold are calculated by the government based on the value of the gold.Additionally, if you're selling gold, you may have to pay capital gains tax. Capital gainstax is a tax on the profit you make from selling an investment. However, thereare ways to avoid paying capital gains tax. For example, if you hold onto thegold for more than a year, you can qualify for the long-term capital gains taxrate, which is lower than the short-term rate.

5. What if I Need to Sell My Gold?

If you need to sell your gold, you can do so easily! You cansell gold at a pawn shop, online, or to a private buyer. The best way to getthe most money for your gold is to sell it directly to a private buyer. You canfind private buyers by searching online or through word-of-mouth. If you'reselling online, make sure you're using a reputable website. Finally, don'tforget to get your gold appraised before you sell. Appraised gold means thatyou'll get more money for it!

6. How Do I Start Investing in Gold?

Investing in gold is easy! You can start by buying physicalgold or paper gold. If you're not sure which type of gold to buy, ask afinancial advisor. They can help you figure out what type of gold is right foryour portfolio. Additionally, IRA provides an easy and efficient way to investin gold. If you decide to buy via online trading, firstly, you need to find areputable website, and then open an account. After that, you can start buyingand selling gold!

As you can see, there are a few things you need to know beforeinvesting in gold. But don't let that discourage you - gold is a smartinvestment for anyone! Just make sure you do your research and understand therisks involved. And always remember to diversify your portfolio. Happyinvesting!

By Steve Barker

© 2022 Copyright Steve Barker - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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