Investing in gold is the right choice for anyone who wants to preserve and increase the value of their wealth in the long term, especially for beginners. It is not without reason that this precious metal is so popular, as it is one of the most stable and low-risk investment instruments. That is why gold is known as a safe haven.

It earned this nickname because even in uncertain economic conditions, gold continues to perform well. When currency values depreciate, stock markets plummet, or inflation rises, gold prices tend to remain stable or even increase.

However, before diving deeper into gold investment, it is essential to understand the basics to avoid making incorrect decisions that could lead to losses. Therefore, let us discuss the key points you should know before starting your gold investment journey.

1. Determine Your Investment Goals

The first step you should take before buying gold is to determine your investment goals. Do you want to secure your wealth, prepare for retirement, or buy a house in the next 10 years? Setting goals will help you determine the amount of gold you need to buy and the storage period.

For example, if you want to invest in gold for your children’s future expenses, then your gold purchasing strategy can be done gradually and adjusted to the target time that has been set. In addition, having a clear goal will prevent you from impulsively selling your gold when the price rises.

With a goal in mind, you can focus on saving and allocating funds regularly, and be disciplined in building your gold portfolio without being tempted to withdraw funds too quickly.

2. Monitor Gold Prices Regularly.

Gold prices change daily, even hourly. Therefore, make sure to monitor gold price movements before deciding to purchase. By regularly monitoring gold prices, you can help yourself buy gold at a relatively low price.

To get the latest gold prices, you can read the latest news about gold prices through gold investment websites. If you want something more practical, you can use a gold investment app that provides real-time gold prices.

Read also: Trading Gold vs. Investing in Gold, Which is More Profitable? – Treasury

3. Buy Gold from a Trusted Source

Security is non-negotiable when buying gold. Make sure you only buy gold from verified sources with a good reputation. Avoid buying from unknown sources or individuals who cannot guarantee authenticity.

You can buy gold from official retailers. Ensure you receive an authenticity certificate, especially if the gold you are purchasing is in bar form. This certificate serves as crucial proof when you wish to resell the gold. Without it, selling the gold becomes more challenging.

Additionally, purchasing from legitimate sources guarantees the authenticity of the gold and minimizes the risk of fraud. This allows you to invest with peace of mind and security.

4. Choose a Secure Storage Location

After purchasing gold, the next important step is to ensure that it is stored securely. If you purchase physical gold such as precious metals or jewelry, you will need to provide a storage location such as a safe at home or rent a safe deposit box at a bank.

However, in this digital age, there are also digital gold investments. You can invest without having to store gold in physical form. Digital gold is stored digitally on the platform that provides it and can be cashed out at any time. Additionally, digital gold can also be exchanged for gold bars.

Storage security is crucial in gold investments, as the risk of loss due to theft or natural disasters can be highly detrimental. Therefore, prepare a good safe before investing in gold.

5. Determine When to Cash Out Gold

One of the advantages of investing in precious metals is their high liquidity, but you still need to consider the best time to cash out. Gold should be cashed out when its price is high, not just when you need quick cash.

If you want to make a significant profit, you should hold onto your gold for at least five years, and it will increase in value year after year. You should also know that smaller gold denominations are easier to liquidate than larger ones, such as 50 grams.

Understand that liquidating gold, whether physically or digitally, may require specific time and procedures. Therefore, ensure you plan the liquidation carefully according to your needs and market conditions.

Investing in gold is the first step toward preserving wealth and protecting the value of money from inflation. However, to achieve optimal results, you need to understand how this investment works, from its purpose, purchase, storage, to liquidation. All these steps will help you build a wise and well-directed gold investment strategy.