While it can be a wise decision, the advantages of buying gold can easily be lost if the process is not done properly. These are some common mistakes made when buying gold:
1) Not Understanding the Process
This can involve ignorance of such issues as the price, weight, and purity of the gold that is bought. Purchasing gold only when its price increases or in an economic downturn is a bad choice, with supply and demand issues an underlying factor.
2) Patronizing Bad Deals and Dealers
Purchasing items that are at an abnormally low price or buying from questionable dealers could result in a bad deal.
Rare coins are normally bought by coin collectors and are not good for investment purposes. Dealers can be checked through the Better Business Bureau.
3) Sharing the Details of Your Purchase
The details of your gold buying experience should be a personal matter and the items themselves should be secured safely. Don’t let others know that you have pure gold in your possession.
Done properly, the purchase of gold can be a good investment. The way it can protect you against inflation is unmatched.