Investors are predicting tough times ahead for the U.S. economy, especially with the current political chaos in Washington. News reports say that more and more investors are buying gold and hoarding cash in anticipation of another recession or a similar situation. If you have considerable cash assets or savings, now is really the time to buy gold.
Gold is at an all-time high since 2009. Financiers advise a 10 to 15 percent gold allocation depending on any cash assets you might have. If you are still unsure whether you need to buy gold, or even how to buy gold without getting scammed, read ahead.
Why You Need Gold in Your Portfolio
Gold is the time-honored hedge against currency devaluation and falling interest rates. Gold prices go up when the value of the dollar and interest rates fall down. These things usually happen during a recession, and investors risk losing significant amounts of wealth. Gold can provide a hedge against stumbling cash assets in economically trying times.
For example, consider the recent Brexit vote that sent the pound on a downward spiral not seen in decades. British retirees experienced a major blow to retirement savings that only have cash assets in portfolios. Gold prices, on the other hand, shot up. So, people who had gold along with cash retirement savings were protected against harmful consequences of the vote.
You absolutely need gold to protect yourself in case another recession happens. Considering that you will be saving and investing for several decades in the future, it’s safe to say that there will be financial uncertainty that needs planning ahead for. Gold is the best way to go.
How to Buy Gold
There are several ways to buy gold. Traditionally, people went to banks or offices of gold dealers. Nowadays, you can buy gold online. But first, you need to understand whether you need to buy gold in bars, bullion or coin forms. Also, you need to be cautious against possible scammers.
Gold coins are the most popular way of buying gold. Coins are small and portable, so they are easy to store. Gold coins that are national mints can also be used for trading without a hassle. Those who want to store large stacks of gold in a bank can choose gold bars. Gold in forms like the Valcambi Combibar is convenient for people who want gold parts that can be broken down into manageable parts easily.
Then, you need to find a gold dealer. Choose a reputable dealer like LearCapital.com, which is a registered business entity with good customer reviews. Good gold dealers offer proofs of purchase and tell you where the gold is stored. These dealers may be recommended by experts as well as U.S. Mint.
Signs of Scam Dealers
If the dealer does not offer a legitimate and complete business address, then that is very likely a scammer. Online dealers sometimes do not offer proofs of purchase or don’t disclose how the gold will be stored. These are scammers. You can spot a scammer easily with a quick background search. See if the company has a good website, reviews, recommendations and a social media presence.
If you are alert and informed, it’s easy to spot scammers online. Do not let fears of getting duped keep you from protecting your future finances with gold.