Many people invest in gold as a way to diversify their portfolios and add stability to their savings. What some people aren’t aware of is that buying and selling gold can be the start of a precious metals business. Many people use gold as a way to capitalize on its value and make money. Whether they purchase gold futures or buy gold bars, San Diego investors can make a profit from buying and selling gold if they time their transactions in a smart way.
Investing vs. Buying & Selling Gold
Gold is an investment many people choose when the stock market is unstable or the economy is doing poorly. This is because gold is considered a safe and stable investment. The price of gold typically stays strong and even increases when the stock market is unstable. This adds stability and diversity to a portfolio.
On the other hand, buying gold when it’s priced low and selling it when the price goes up can result in a decent profit. Because the price of gold typically remains stable, it’s important to follow the market closely before buying gold. This will give you an idea of the best times to buy and sell.
Making Money with Gold
The COVID-19 pandemic made markets unstable around the world and caused the economies in many countries to plummet. This resulted in the price of gold rising to extremely high levels. In November 2020, gold’s price hit over $1,900 per ounce before leveling out. Investors believe gold prices will continue to increase through 2021.
Most financial advisers recommend purchasing gold and holding on to it for the long term as the market is watched. However, those who wish to buy and sell their gold may not want to wait that long. Experts predict those who buy gold and sell it in the next few years when it commands high prices may be able to net a good amount of money.
How to Buy Gold
There are several ways to purchase gold:
- Gold bullion or coins allow buyers to physically possess their gold. One drawback is that the purchaser must physically safeguard the gold.
- Gold futures are an option for those who speculate on the price of gold rising or falling in the near future. There’s some risk in gold futures, but those who carefully watch the price of gold may be able to make a hefty sum of money.
- Gold exchange-traded funds (ETF) allow people to purchase gold without physically possessing it. There are several ETFs in the world that are considered safe. The expense ratios are typically smaller, and they’re more readily available for an exchange of cash than bullion.
Best Ways to Sell Gold
If you choose to purchase or sell gold bullion or coins, going through a gold dealer may be the best option. A gold dealer will be able to offer a fair price for the bullion. Gold dealers are available in physical locations across the country and online.
If you’re looking for the best place to buy gold in San Diego, make sure to work with trustworthy precious metal dealers who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to buy or sell precious metals, including gold, silver, platinum, and palladium. Give us a call today at 858-666-6570.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.