Six Things You Should Know When You're Looking For A Gold Seller
When you are looking to invest in gold, you need to find a gold seller you can buy from. There are a few things you should be aware of if you've decided to buy gold and are on the market for a seller.
The following are six things you should know when you're looking for a gold seller.
Gold's value tends to rise as the value of fiat currencies drops.
One basic piece of information regarding gold investing that you might already be aware of is the fact that gold's value tends to rise during periods of inflation. This makes gold a good investment during economic downturns when the value of fiat currencies tends to drop.
Buying physical gold is distinct from investing in gold stocks.
It's important to understand the difference between buying physical gold and investing in gold stocks.
When you buy physical gold, you're investing in a commodity. When you invest in gold stocks, you're investing in companies in the gold industry. For example, you might be investing in a gold mining company.
Although the value of gold stocks is definitely impacted by the value of gold as a commodity, gold stocks might not function as well in terms of a hedge against inflation as physical gold does.
There is a significant difference between gold bullion and gold coins.
It's also important that you understand the difference between gold bullion and gold coin purchases. You'll have to choose between gold bullion and gold coins if you invest in physical gold.
Gold coin investments can rise in value even if the value of gold bullion goes down. That's because gold coins have value in terms of their rarity as well as value as a commodity. Investing in gold coins may be more expensive than investing in gold bullion, but it can also be a more secure investment in some cases.
Profits you make on gold investments may be taxed differently from profits on other investment types.
As with any other type of investment, you need to understand your tax liabilities if you make money on an investment in gold.
You need to be aware of the fact that physical gold is generally taxed according to the collectibles rate. If you have questions on tax responsibilities resulting from your gold investment, it's important to discuss your investment with your tax accountant.
You'll need to come up with a solution for storing physical gold.
When you buy physical gold as an investment, you need to have the gold you own stored somewhere. You could choose to have your gold stored in your own safe or in a safe deposit box at a bank.
Otherwise, you may decide to have gold stored at an off-site storage facility. You need to consider the costs of storage if you choose this option and how these costs will impact your profit potential.
You may have to pay markup or premium costs when you buy gold.
When you buy gold, it's important to be aware of the full costs before you commit to the purchase.
Depending on who you're buying from, you might have to pay added premium costs or markups that are the result of distribution and/or manufacturing costs. It's important to be aware of these added fees because they can cut into any profits you eventually make on your investment.