For millennia, gold has been one of the most precious commodities in the world, which makes it an unusually stable investment. While the prices of real estate and stocks can plummet and skyrocket, gold coins and bullion hold their value against the ups and downs of the market. If you’re planning on buying gold, here are a few key tips for getting the most out of your investment.

How to Invest in Gold

1. Buy Physical Gold

Many exchange traded funds (ETFs) and other investment vehicles will sell you an interest in a supply of gold. However, the companies selling these certificates may not actually have any physical commodities either. If the exchange collapses or the market is severely disrupted, you may wind up with nothing but paper certificates. Always buy physical gold coins or bullion, which will almost certainly keep their value.

2. Stick to a Strategy

While gold has risen in value every year for the past 10 years, there may be daily fluctuations in price. As with any investment, it’s important to keep your objectives in mind. Are you investing for retirement or hoping to make short-term gains? Getting worried about momentary dips in price can cause you to sell into a bear market, potentially robbing yourself of thousands of dollars.

3. Buy Legal Tender

Antique gold coins and bullion from certain mints may have value to collectors, but they can be harder to sell. Large bars can be especially difficult to liquidate, so invest in legal tender coins, like the Canadian Maple or the Australian Nugget. These typically have the lowest overhead, so prices are typically close to the spot price of gold.

4. Don’t Over-Commit

If you invest more than you can reasonably afford, you may be forced to sell back your coins at a loss later. Before investing in gold, calculate your income and expenses carefully. If you may need funds in the short term, you might want to focus on building your savings before investing in gold.

5. Don’t Buy With Credit

Some people suggest buying gold on credit, selling it, then using the proceeds to pay back the loan. However, you may not earn enough to cover the interest, so this approach can lead to significant losses. Instead of speculating, think of gold as a way to store value for the future and always use your own money.

Since 1973, Hawaiian Islands Stamp & Coin has been Honolulu’s premier gold coin and bullion dealer. Whether you’re just getting started or are a seasoned investor, their industry-leading experts will deliver winning service you can rely on. Visit their website for a sample of their coins for sale, call (808) 531-6251 to speak with an expert, or just drop by their shop in Chinatown today.