Anyone who earns an income owes it to him or herself to have a nest egg for rainy days or retirement. There are many investments that people can have; from ETFs to mutual funds and stocks and bonds or real estate, cryptos and precious metals. Whether conventional or not, what matters is that you have something that generates passive income for you when you are unable to engage in active income yielding endeavours.
You can visit https://www.easyknock.com/blog/building-a-nest-egg for more insight on how to build a nest egg.
One investment that many people are becoming more interested in is gold or precious metals investment. The major reason for this is that gold is considered a strong asset that can be used as a hedge against inflation. It is an asset that you can hold long term without fear of losing your investment to inflation or unfavourable government policies and regulations.
Building an investment with gold or other precious metals is not something that that comes innately which means that you cannot just up and begin to invest without the requisite know-how. This is the reason why there are many investment companies that are set up to help people make the right investment choices and at the same time monitor those investments.
In this article, our focus will be on how to choose the right company to work with especially if you are a newbie. However, let us first start off by noting the precious metals that are approved for investment and the best one to invest in.
Best Precious Metals for Investment
The following are the precious metals approved for investment:-gold, silver, platinum and palladium. You can invest in these four commodities in different ways and they include the following:-
- Precious metal ETFs
- Mutual funds
- Stocks and bonds
- Physical products
- Gold IRA
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Of all the metals stated above, the most commonly invested in is gold. Just as we mentioned with all 4, there are many ways of investing in this yellow metal. As an investor, you can supervise your investment by yourself; however, if you want to invest in a precious metal IRA, you must do so through an IRS approved custodian.
You would work with the custodian to either buy the physical commodity in form of coins or bars or invest in shares of companies that mine gold. You can also buy ETFs that are backed by gold or mutual funds with focus on the precious metal. Whatever option you choose for your investment has its advantages and disadvantages.
The biggest advantages of investing in this precious metal include its long term investment value and ability to hold its value even in the face of economic and political upheavals. The biggest disadvantages include the risks or costs involved in storage of the physical commodity and illiquidity of the asset in one’s portfolio.
It therefore behoves the investor to do their due diligence to know the best option for them. This now brings us to the all-important point which is choosing the right company to work with
Tips for Choosing the Best Gold Company
Like we mentioned earlier, if you want to invest in gold through a precious metal IRA, you must definitely use a custodian. This person or company will be the one that is responsible for filing your paperwork and ensuring that you do not flout any IRS rules and regulations about these types of investments.
Having established that fact, many people are faced with the dilemma of the right company to work with. You often hear questions like ‘is Gold Alliance a reputable company? The short answer to that is that a quick look at this review from Digital Financing Taskforce will help you out. This in addition to reviews from other independent 3rd party sites will definitely give you a heads-up whether a company is legit or not.
We will do you one better by dropping tips here of how to know a legitimate gold company…
When searching for the right company to start investing in precious metals with, you need to do some research. What you should be looking out for in the course of your research include the following:-
- Qualification and certification
Qualifications and Certifications
We recommend that you make a list of at least 3 companies that you would consider. Look out for the qualifications of their team members and also paperwork such as their registration, insurance and bonds. The team members should have qualifications in legal and regulatory compliance, management and business, finance and economics.
Additionally, the company should belong to professional associations such as:-
- World Gold Council (WGC)
- American Numismatic Association (ANA)
- Industry Council for Tangible Assets (ICTA)
- Local Chambers of Commerce
- Bullion Associations
- Financial and Trade Associations
Every country has their own legally recognized professional body(bodies); find out what it is and ensure that the company you want to work with belongs to one of such associations. This is proof that they are a legit company because those organizations do not just take in any firm without due diligence. You can also visit https://www.referenceforbusiness.com/encyclopedia/Per-Pro/Professional-and-Trade-Organizations.html for more clarification.
Before you sign up with any company, ensure that you find out the reputation of the company. Read customers’ reviews to find out what clients are saying about them. Additionally, check out reviews on 3rd party sites such as Better Business Bureau or Business Consumer Alliance. Note companies that have A+ rating; this assures you that they are not only legit but also offer top notch service.
Make sure that whatever gold dealer or firm you choose are completely transparent with you. They must give you full disclosure on every aspect of your investment and transaction. Note how they answer your questions and how willing they are to simplify the process for you.
Avoid any company that gives ambiguous answers to your questions and are not willing to give you a full list of every single fee that you will have to pay for their services.
Investing in gold through any means is a worthy venture but can also cause premium tears if not done properly. We have taken time to give you tips on how to invest with the right company. Ensure that you bear these tips in mind so that you can invest profitably.