ITM Trading: Are Precious Metals Something You Should Invest In?

For some the only consistent thing when it comes to money is gold. Some would say that it makes the world go around. While the United States no longer backs its currency with gold, making the American dollar fiat currency, gold is an investment that over the long term retains its value.

Gold can make a good addition to diversified investments. It’s a physical investment that can later be sold for a profit. Let’s go through the types of gold you can invest in, what to look for in a gold broker, and warning signs that a broker may not be all they seem. You’ll be well equipped to continue your research and choose the best way to add gold to your investments in the future.

Ways to invest in gold

There are many ways to invest in Gold, but three main ones stand out. First is jewelry, which can double as ornamentation. Coins are another way, making gold easily portable and easier to spend.  The final way is in bullion or bars, which can vary in size. Let’s take a look at these.

You can find out more about owning gold here.

Jewelry

In history, the rich didn’t just hoard gold and precious gems in dungeons as if they were dragons. Instead, wealth was often displayed as jewelry, making it much more portable. Our views on how to show our wealth have changed, but the fact we use gold and other precious metals to make jewelry has not. There are a few guidelines for selecting gold jewelry for investment.

First, look for older pieces. Many modern gold pieces are alloyed with other metals to both increases the strength of the piece and to use less gold. Second, look at the inside of your piece, or the back. Are there numbers accompanied by a letter K? These numbers are what Karot the piece is, with 24k pieces having the most gold content.

Find more information on gold karats and percentages here: https://www.gold.org/about-gold/about-gold-jewellery. This will help you determine not only the purity of the gold jewelry you own, but also help you learn about what percentages of gold and other metals go into different types of gold. Some older jewelry pieces also are considered antiques. This means you’re often paying a higher price for the gold than if you’d purchased bullion.

Gold Coins

Gold has been used to make coins since we figured out we could melt metal and change its shape. Coins are easy to carry and break down your gold investment into smaller pieces, making it easy to part out and use to get a return on investment. This feature makes it, along with silver coins, popular with the prepper community. Gold coins can run into some of the same issues as Jewelry. For example, you often are paying more than the price of the gold content. It can be hard at times to get a hold of gold coins which makes them highly prized by coin collectors. For example, the United States government collected the majority of gold coins in the early 1900s, allowing citizens to keep up to 100 dollars in gold coins. The rest had to be turned in for paper currency.

Bullion

This is often viewed as the best way to buy gold. You pay for bullion bars, which are sold for the gold content. This means you’re paying for only the gold. This can mean that you have to take a chance on when gold might be at a lower price or settle for paying a higher price then not be able to get a return on investment if you have to sell when the market is unfavorable. Bullion is also harder to divide up on the fly and can make you a walking target if you carry it on your person.

Find out more here: https://www.forbes.com/advisor/investing/how-to-buy-gold/

Warning signs to look out for

A broker should be open with you about involved fees, as well as their business model. It is normal for brokers of any kind to charge fees, but be on the lookout for brokers who avoid discussing the fees they charge as well as fees that seem to be excessive. A gold broker with a physical location that might be in a rough part of town should likely be avoided. No matter how good the reviews are, a bad neighborhood combined with carrying gold can spell disaster. It would be a tragedy to lose your investment upon walking out of the broker.

Keep in mind that you do not have to stick with the same broker for all of your gold-related transactions. If you find your chosen broker doesn’t fit your needs, it is perfectly okay to change brokers. If a previously trusted gold brokerage starts giving you warning signs, it is often better to visit a different broker.

What to look for in a gold broker

While some may choose to go on their gold investment journey solo, most will benefit from consulting with a gold broker. Think of a gold broker as a stock broker: they keep an eye on the markets and can advise you on the best times to buy and sell any gold you invest in. Some Gold Brokers, such as ITM Trading, are family-run companies, while others may be in a more traditional corporation format. Still, others may be running solo brokerage companies.

Your primary concern here should be finding someone you feel comfortable with. You do not have to go with the first local broker that you find. Do your research and inquire about how to invest with a gold broker. Ask questions and look for reviews. This is potentially a lot of money you will be investing into your future.

Gold is a brilliant addition to any investment profile, and it has the advantage of being an investment you can hold in your hands. It can serve as a sense of security in a future that might feel uncertain. Just go about your way carefully, and your gold investment will serve you well.