When it comes to deciding where to invest $10,000, it’s hard for many people to imagine putting this amount of money into the market without receiving something physical in return. For others, faith in the market and the economy simply isn’t there. If you find that you fall into either of these categories, then buying gold may be the best investment strategy for you.
You must first understand the present economic climate as it pertains to gold. We’ve all heard that gold prices are at an all- time high. Hence, the bumper crop of “Cash for Gold” establishments in communities and online alike. For many reasons, two being named in the above paragraph, the price of gold has skyrocketed since the markets took a hit in 2008. If you’re looking to make money, there is no better time than now to sell your gold.
If you have $10,000 to spend and have decided that you will invest solely on gold, then you must first decide if you are going to sink it all into gold at once or spend a bit each month. By spacing your purchase out, you spread out your expenditure as well as spreading out the purchase price, which helps to somewhat insulate you from loss of investment. We urge you to set a target purchase for each month, set those funds aside and make the purchase monthly.
Then, you must research and decide on the type of gold you will be purchasing. American Gold Eagles are the most common gold coin that people buy for purposes of investing in gold. Gold Maple Leaves are another very common gold coin that people buy for investments. Other people find that purchasing scrap gold jewelry is a way to earn more money. Decide on the type of gold you will be purchasing and stick to just one or two types. Stick to your monthly investment strategy and the type(s) of gold you have chosen and your portfolio will grow quickly.
One quick thought for your consideration if you are buying jewelry or scrap gold. Be sure to buy 14 karat gold, 18 karat gold or 24 karat gold. Anything less than 14 karat gold will cost more to melt down for scrap than the value of the actual gold. Also, be contentious about the type of jewelry you buy. Be absolutely certain that it isn’t gold plated or hollow. You want a solid gold piece.
If you can’t buy actual physical gold at the prices that you want, you can actually invest in a gold fun or an ETF or an ETN. Gold can also be added to an IRA account. Another option is to buy gold futures, or basically the right to buy a specified amount of gold at a certain time in the future at a specified cost. You can even purchase ownership of gold in a company that will store the physical gold for you. They send you a certificate of ownership or interest in the metal.
Whether you’re looking for a long-term investment or a short-term turnaround to generate profit, gold is a good market to buy into at present. With research and help from a financial professional, you can use it as an opportunity to put that $10,000 to work for you.