With inflation at an all-time high and the stock market in the red, experts are debating whether or not the country has entered a recession. While the jury is still out on that, you can protect yourself financially and cope with troubled economic weather by redirecting your money into safer assets like gold. Here’s all you need to know about how to invest in gold.
1. Store your gold in a secure location near you
You should always have direct access to at least some of your gold. You can store it in a safe near your home or keep it with someone you trust. The key is to have immediate access to your gold in case of a crisis.
If you have a lot of gold, however, store some of it at home and keep the remaining in third-party storage. People who have invested a significant amount of money in gold can consider storing it internationally, as well.
2. Store your gold assets in a safe jurisdiction
Given the issues discussed above, you may want to consider storing at least a part of your gold in a safe jurisdiction where political figures have limited power. Switzerland is, at present, one of the safer jurisdictions because they have a decentralized political system and multiple presidents.
Liechtenstein works similarly, but they have an active monarch — Price Hans-Adam II — who has veto power. Fortunately, he has been a strong supporter of gold as an asset.
3. Store your gold outside the traditional banking system
The current banking system is based on paper, credit, and computer digits. Physical gold is essentially the antidote to such a system. Given this, if you decide to purchase gold, it would be best to store it outside the banking system.
Property rights in the current banking system are temporary in nature. In the past, banks have confiscated cash and physical gold. To protect your gold, it’s best to store at least a part of it in places other than a bank.
4. Ensure that you are compliant with all the laws when purchasing gold
Whenever you can, make sure to purchase a few gold coins. Most investors are unable to purchase a lot of gold all at once, but that can, in fact, work to your advantage. If you purchase a few coins every year, you can make the transactions privately.
If you, however, want to purchase larger amounts of physical gold, you’ll need to follow the law and declare your purchases. Make sure not to flout any rules when investing your money in gold.
5. Buy gold with money you don’t need in the short-term
You don’t know how the market is going to perform or when the system will crash. Given this, only purchase gold with money that you don’t need for at least the following five years. While it is highly probable that the price of gold will be higher in the next five years than it is now, it’s harder to predict what will happen in the short term.
Avoid the temptation of buying gold to turn in a quick profit. No matter what happens economically, there’s a good chance that after five years, you’ll be happy with the investment you made.