There are many aspect of investing in gold, but here we shall talk about the one that matter the most and that is COST of investing in gold. There are quite a few cost features connected to investing in gold and when you put together all of these, they constitute a sizeable percentage of your funds invested in this precious metal. Here’s vital gold investment advice that should not escape the attention of those investing in gold.
Before we talk further on gold investment advice, you should understand gold spread, which is primarily the difference in the purchasing price and selling price that is decided by the dealer. The price that the dealer lays down will be more than the spot price by a small percentage. Similarly, at the time of buying gold back, the dealer will lay down a price that is lower than its spot price by a small percentage. Gold spread forms an essential prerequisite for investing in gold and it could easily occupy six too nine percent of your investment.
When investing in gold you’ll need to pay two kinds of taxes. Of course, you would know that sales tax needs to be paid at the time of buying gold. The other tax is the capital gain tax, which is to be paid on making profit from your investment in gold. However, sales tax may be exempted, depending on the kind of gold that is bought. You may also avail of exemption from capital gain tax provided investment in gold is carried through specified Individual Retirement Account like Gold Roth IRA account or Gold IRA.
Gold Shipping and Insurance
The other factors that add to your total investment in gold are insurance and shipping of the metal. Plus, you can’t altogether rule out the possibility of gold getting lost while being shipped. It is not unusual for many investing in gold to overlook these expenses. You need to take account these expenses not only at the point of buying, but also while selling gold back to dealer.
Investors of gold would naturally need to look for a secure place for storage of the metal to avoid risks of theft. Again, you’ll need to incur additional expense for the purpose and it must be pointed out here that whatever option you may choose for safe storage of gold, it is going to be a recurring expense. That makes it imperative to look for an option that proves cost effective in the long run.
So, those were the major expenses connected to investment in gold. You would do well by keeping this gold investment advice in mind while investing in gold.
You may also like to search the Internet for Gold Calculator that helps simplifying the calculations for the above aid cost. You will also find the calculator helpful in reckoning the ROI (return on investment) and break even point while investing in gold.
Here’s hoping that the above going gold investment advice proves helpful to investors in buying gold at the most competitive prices and benefit from their investment in this precious metal.