Before you invest in gold bullion, you should do a little homework on the different gold investment companies in the market. There are many different types of gold investment companies with varying investment profiles. In order to get the best value for your gold investments, here are some helpful suggestions:
– Fee-useless Gold Investment Companies: Only invests in gold investment companies who don’t charge you a fee for their work. Many of the companies reviewed will charge thousands of dollars a year for large accounts and then never come around to paying the account holder a dime after the “sale”. We always recommend flat-fee, no-fee gold custodians who will not charge you a penny after the transaction. These are the real deals.
– IRA Account: If you are self employed or have retirement savings, consider opening an IRA account. Most gold investment companies do not offer direct investments in precious metals. You are better off opening an IRA account where you get to see how your money is invested and receive reports on a regular basis about your investments and returns. If you want to learn more about an IRA and how it works, check out some good books on IRAs or go to your local brokerage firm and talk to them about investing in precious metals with an IRA account.
– Annual Fees: Most gold investment companies only offer their service in exchange for a fee. Some investors don’t care and want a full service gold investment company. If this appeals to you, find companies who do not charge annual fees and don’t require account holders to wire money every time they make a purchase. Find brokers who don’t require minimum deposits to open accounts. Just because a company charges less in commissions and transaction fees doesn’t mean it’s a deal breaker.
– Service: It’s important to find the best companies with the best service. Ask how long the company has been in business and if they have a full staff. Investigate how fast they respond to phone calls and emails. Get information about their customer service department and how responsive it is to your questions. This is a big factor since gold custodians can be very busy and you might get hung up on a quick response just as you are trying to close a gold trade.
– Return On Your Investment: All companies should have a good return on your gold investment companies. They should be conservative with your money so you will have little risk of losing it. Most gold investment companies offer low risk, medium risk, and high risk options to protect your capital. Look for company options that offer the best combination of risk and return. Know what the rollover to a qualified account is when you need it, so you won’t have to rush to liquidate all your holdings if your chosen custodian is unable to deliver. You also don’t want to find yourself out of pocket because you invested too much.
– Return On Your Investment: Self directed accounts are different from traditional IRAs. You can invest in precious metals with your own money. However, you must be knowledgeable about precious metals and their pricing before you make an investment. Be sure to research reputable dealers before investing so you can be confident they will hold your investment safely. If you are unsure, ask questions.
– Custody Of Your Investments: Some people feel more comfortable investing in the larger, more popular investment firms. However, there are more custodians who deal solely in gold, and they have more sophisticated policies and procedures in place for self-directed investors. Smaller companies may not have as strong of policies for self-directed investing in precious metals, but you should always look at their policies carefully before investing. With a reputable self-directed IRA, you can have confidence that your investments are safe and secure, and that your custodian will do everything in his or her power to protect your interests. This can’t be said for all the smaller, less-established companies.
