Buying Bullion In France,France is Europe’s second richest country and home to the fourth highest household wealth in the world. This coupled with a long-time use of “Rabbit Gold” (the French name for gold buried in the garden as a means of wealth preservation in times of unrest) means France as a whole knows the use and value of gold as a hedge.
France is steeped in history and as such is a numismatic hotspot with coin dealers and collectors keen to trade in this history, buying and selling everything from the truly ancient to more modern coins. This has given France an enviable network of coin dealers and numismatic specialist resources.
Taxes and regulations:
Depending on your location, you may be subject to taxes and regulations when buying gold. Familiarize yourself with applicable laws to avoid legal issues and financial penalties.
Emotional decision-making:
It’s crucial to approach gold investing with a clear mind and a well-thought-out strategy. Avoid making impulsive decisions based on emotions, leading to poor investment choices.
What is the Safest Way to Buy Gold?
Buy physical gold:
Physical gold, in the form of coins or bars, is generally considered the safest way to invest in gold. Unlike gold stocks, ETFs, or futures, owning physical gold allows you to hold a tangible asset that is not subject to the risks associated with financial markets.
Choose reputable dealers:
As mentioned earlier, researching and selecting a reputable gold dealer is critical. Ensure the dealer is accredited and offers products from recognized mints and refiners.
Types of Gold Investments
When purchasing gold, investors have several options, each with advantages and costs. Gold can be bought in bullion coins, bars, or rounds; each type comes with a premium over the spot price.
Investors often prefer Gold Coins for their collectible and government backing. The American Eagle, Canadian Maple Leaf, and South African Krugerrand are popular options. These coins usually carry a higher premium over the spot price due to their design, rarity, and the costs of minting by sovereign governments.
Gold Bars offer a more cost-efficient way to invest in gold due to their lower premiums over the spot price. Bars come in various sizes, from 1 gram to 1 kilogram, and are preferred by those looking to maximize their physical gold holdings.
Gold Rounds resemble coins but are not issued by a government mint, typically resulting in slightly lower premiums than gold coins. Rounds are an attractive option for investors focusing purely on the gold content rather than conductibility or legal tender value.
informed decisions and safeguard your investments with the proper knowledge.
Ignoring purity and weight:
One of the investors’ most common mistakes is disregarding the importance of purity and weight when buying gold. The purity of gold is measured in karats (K), with 24K being the purest form. Investing in gold with lower karats means buying gold mixed with other metals, which can negatively impact its value. Additionally, attention to weight can lead to overpaying for gold. Ensure you know the weight of gold you’re purchasing, measured in troy ounces or grams, so you can accurately compare prices.
Failing to research dealers:
Not all gold dealers are created equal. Some may charge exorbitant premiums or offer inferior products. To protect yourself, conduct thorough research on the dealers you’re considering, including reading customer reviews and verifying their accreditation with industry organizations, such as the Better Business Bureau.
Buying gold at the wrong time:
Timing is crucial when purchasing gold. However, it’s impossible to predict market fluctuations perfectly; buying gold when high prices can lead to diminished returns. To minimize risk, keep an eye on market trends and consider dollar-cost averaging, which involves investing a fixed amount at regular intervals.
Neglecting storage and insurance:
Properly storing and insuring your gold is critical to safeguarding your investment. Unfortunately, some investors make the mistake of storing gold at home, which can expose them to theft, damage, or loss. Instead, consider using a professional storage facility or a bank’s safe deposit box to secure your gold.
Contact Bonasgold with any questions about your Gold IRA and investment strategies. Our agents are ready to help get your started!
