Buying Gold

If you are buying gold for investment purposes only, you should buy coins and bars, and avoid jewelry. Jewelry has a very high risk, due to manufacturing and processing fees. You must be aware of capital gains tax. If you sell your investment before three years, you will pay 30 percent capital gains tax. After three years, you only pay 20 percent capital gains tax.

There are two different sizes of gold bars you can purchase; ingots are the bigger bars and biscuits are the smaller bars. Biscuits are easier to buy and sell, because you are dealing with smaller investments and lower shipping costs. However, they do cost more per ounce due to manufacturing costs. It is the equivalent of buying penny-stocks opposed to blue-chip. The ingots get a higher premium but shipping costs will be higher. To avoid this, you can use a gold dealer who uses paper to transfer ownership.

You will want to buy your gold from reputable sources. Avoid buying gold from online sites like eBay. The US Mint is a good place to start. If you are buying rare coins and you don't know what you are looking for, you could be taken advantage of. This is why it is important to use a reputable coin collection company. Another good tip is to get the coin appraised by an independent appraiser before you make an investment. When the dollar is declining and the stock market's down, gold has a history of increasing in its value.