Finances

4 Strategies For Earning Wealth With Gold

Stocks investors are often fond of saying gold doesn’t earn interest. Thanks to gold leasing, that’s not technically true, but for the average gold investor, gold is a defensive commodity that protects your wealth over the long term. But that doesn’t mean investors can’t generate wealth through gold and silver while they hedge their investments in the stock market. By employing a few simple strategies for your gold investment, you can start earning wealth through precious metal investments.

Gold can be more than just a way to store your wealth, it can be used to grow your retirement savings and your finances. Consider trying out these 4 tips to increase your wealth using gold and silver bullion.

#1 Save on Premiums

Mints and gold dealers charge a premium over the spot price of gold when you buy gold and silver coins, bars, and wafers. You can pay lower premiums by buying gold online from dealers such as Silver Gold Bull, a gold dealer with deep liquidity and a superior inventory – which means you wait for less to get your gold or sell it. One easy way to save on premiums is to never buy gold with credit; cash is king with online gold dealers. For example, paying with an Interac e-transfer or a cheque means you save 4% on gold purchases from Silver Gold Bull. Remember that the percent premium you pay is how much higher the price of gold needs to go for you to start profiting from your investment and generating wealth.

#2 Buy Low

Like almost every investment, the gold price experiences dips and surges, so even if the price of gold is trending upward, there will be daily ups and downs. To maximize your return on investment and turn gold into a commodity that generates wealth, wait for the dips. They’re inevitable, even on a bull market, and the savings will add up in the long run. Consequently, don’t buy gold bullion when it’s clearly peaking – wait for the valley.

#3 Spread Out Purchases

Every month, make a fixed investment in gold no matter what the price is. This is called dollar-cost averaging and it spreads out the risk that the price of gold will suddenly drop after your purchase. Mitigating risk is the first rule of thumb for gold investors who want to grow and preserve their wealth. Instead of trying to time the market, you’re building your assets on a fixed schedule with a clear goal – when the price dips, you’re buying more gold for less.

#4 Avoid Gold Stocks

Some investors in the gold market also invest in gold stocks, i.e., mining companies. This can be a risky business, as gold stocks are closely related to the price of gold but more volatile. A ten percent dip in gold prices can cause gold stocks to decrease 20 to 30 percent, only to go up by the same half a year later. It can be a difficult market to prepare your investments for, and unless you’re ready to take some major risks, it’s better to stick to physical gold bullion.

Summary

With these strategies going forward, you can make gold work for you. Start investing today and remember to save on premiums, use dollar-cost averaging, and buy during the dips.

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