Investing in Gold

Physical Gold

Assess need. Most financial planner suggest about 10% of a portfolio should be allocated to gold. Depending on net worth, it may or may not be practical to have this entire amount in physical gold, since storage and insurance can be quite costly. Still, there is no substitute for physical metal and, in case of emergencies, having some on hand can be priceless. Find a reputable dealer. Whether it's a local store front or an online dealer, buying physical requires identifying a reputable source. If local options are not available, several good online bullion stores are listed in the Resources section below. When comparing dealers, consider shipping costs, applicable taxes, availability and, of course, price.

Buy good bullion. The value of gold bullion is based on its purity and the reputation of the assayer guaranteeing the purity. The most popular is minted by national governments such as the U.S., Canada, Australia, Switzerland and South Africa. These highly sought pieces usually command a significant premium above the spot price of their metal content. Other reputable assayers, such as mining companies , may present a better value for the investor but may or may not be as liquid for resale.

Pick up scraps. A growing sector of gold investment is recycling scrap from electronic devices, old jewelry or dental fillings. Gold scrap, or gold of lesser purity, is not as valuable investment grade bullion, but can be refined. Most of the major online gold dealers will buy scrap gold.