Ready To Invest In Gold Coins? 3 Factors To Discuss With Your Gold Coin Dealer
Political and economic uncertainty can lead to discomfort with standard investment strategies, such as purchasing stocks or funding money market accounts. The desire to move away from this type of investment uncertainty is fueling a move toward investing in something that can offer physical reassurance of value, such as the purchase of gold coins.
Like any precious metals purchase, it is important for new purchasers to educate themselves about the process. If you are considering your first investment in gold coins, here are three important factors you should discuss with a gold coin dealer before making your initial purchase.
Storage of gold coins
If your investment will be small, such as if you'll be purchasing gold coins as a collector for hobby purposes instead of as part of a serious investment strategy, you can probably safely keep your gold coins at home. To be sure, consider asking your home insurance provider to see if your current coverage is sufficient or if you can purchase a rider to protect your investment. You may also want to invest in safe storage options for your gold coins, such as a fireproof safe or lockbox.
If you plan to maintain a larger amount of gold coins as an investment, you will want to discuss other types of storage, including secure off-site options, with your gold coin dealer to determine the safest way to do so.
Taxes
Taxation is a common concern when investing in gold coins or any precious metals, especially for investors who plan to grow their investments over time. Investors will want to discuss their proposed purchase amounts and how they will be reported to the Internal Revenue Service with both their gold coin dealer and their tax preparation specialist before making their first purchase.
Gold spot price
The cost of purchasing gold and other precious metals is usually determined by something called the spot price. Because the spot prices for each precious metal can fluctuate frequently, seasoned investors often choose to go online one or more times each day to check the current spot price and then record that number in a spreadsheet, along with information about any contributing factors that pushed the spot price up or down.
Over time, this type of recordkeeping strategy helps investors see trends that they can use for buying or selling more profitably. To get a good grasp of spot pricing and how it can be best utilized for your investment strategy, as well as information about tax liability and storage options, new investors should seek out and partner with a reputable gold coin dealer in their area.