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May 4, 2021

 Owning physical gold provides many advantages to investors, including it gives you peace of mind knowing that you have access to physical money in the event of a financial market catastrophe when the value of paper money can become null and void or just simply hard to access.

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    The key to reaping the benefits of gold is to ensure you have the right insights into how to both purchase and store it wisely, so it's there when you need it, to which a former precious metal company owner for many years and now gold consultant offers the following tips: 

Buy Physical Gold and Silver Only

For more than 4,000 years, gold was used as legal tender before later being replaced by a paper measure of faith backed by gold, also known as currency.

However, today's currency is no longer backed by government gold stores, thus leading
many people to purchase money that is backed by gold with the notion that they own physical gold on paper to hedge against an economic crash.

But if they were to ever trade in that cash for physical gold, there wouldn't be enough gold available.

In fact, the bank's terms and conditions probably don't even state that you actually own physical gold, and they probably also have a no cash settlement clause, so you could never take possession of it in a time of economic crisis.

Therefore, when buying gold to set aside as your insurance, be sure it's physical and that you own it. The terms should also state the exact number of bars you own, the standard of purity, and more.

Be Sure Your Gold Isn't Leased Out

When you purchase gold, you want to be sure that it is from a company that does not lease it and more, so you know that you are the direct owner of the gold. This will enable you to access your gold storage quickly in a time of crisis. 

Any additional assets can then be stored in a safe jurisdiction with their own private property rights.

Comply With All Laws When You Purchase Gold

If you invest in large sums of gold, you must adhere to certain laws, or it can be considered money laundering and confiscated by the government.

However, there are no laws governing smaller purchases of gold, nor do you have to provide your personal details when buying it, so many gold investors typically buy small amounts of coins at a time for more security and privacy.

Companies like Augusta Precious Metals and Goldco specialize in helping individuals set up a gold back IRA.


Save For Your Purchases

Saving before you invest in gold will ensure you have enough money to meet your goal. 

It also prevents you from having to use credit for your purchases, which during times of crisis can be called to be repaid sooner, which can cause you to default.

Only Invest Money You Can Afford to Let Grow

When making gold purchases, it is recommended you only use funds you can afford to miss for the next five years. However, keep some money for the next three to nine months, etc., in case prices drop or there is a system crash in the short term.

Invest in Coins and Bars With High Liquidity

Investing in liquid silver and gold stock will enable you to easily redeem your precious metals quickly.

Hence, you want to also invest in legal tender coins, such as Maple Leaf and Australian Nugget coins, which are easier to transport in a crisis as opposed to big, bulky bars.

You should also be sure they have a low fabrication fee and that the price per physical ounce of gold is comparable to the spot price.

Pick a Safe Jurisdiction to Store Your Gold

You should also store your gold in a safe jurisdiction where the power of politics is limited on gold reserves. 

Provinces with decentralized political systems mean the states and municipalities maintain absolute control when it comes to solving their own issues; therefore, it is not likely the government will simply confiscate.

In fact, there are many safe gold storage infrastructures emerging throughout the world each day, including, Singapore, Hong Kong, Liechtenstein, and more.

Just be sure to do your homework or talk to an experienced gold dealer before storing your gold in an offshore plan to ensure your bullion is protected under the rules there.

Store Some Coins Close to Home

Having some gold coins stored near you provides you with easy access to them if you need them. 

However, it is good to also store some of your coins outside the country because it offers insurance in the event your own region suffers a harsh crisis.

For instance, some countries still have a currency that can be exchanged for physical gold, and your gold also cannot be confiscated by the politicians there, so they offer better protection in emergencies.

It is generally recommended that gold investments less than $50,000 be stored nearby, while anything above that should be stored in a safe jurisdiction.

Go Outside the Banking System to Store Your Gold

One of the main reasons people choose to invest in gold is to safeguard themselves against a major crisis in the banking industry. Therefore, it is practical to store a portion of your gold in a banking system other than that one. 

Furthermore, property rights in a bank are not upheld during certain situations, which means the institution can confiscate the physical gold in an economic downturn.

They also do not insure physical gold stored in safety deposit boxes. Not to mention, if a crisis does occur in the banking system, your bank will most likely be closed, which means you won't have access to the vault.

Even if the bank were open during a crisis, there's a chance you still wouldn't have access to your gold because banks are sometimes known to lien it out for a return on investment, so it's most likely they won't have it.

Build Up Liquid Stocks

Gold can also be stored over time to help build up savings, in which case, you would simply purchase lots of liquid gold and then hold it for its value rather than viewing it as a vehicle for trading.

For instance, if you purchased an ounce of gold for $400 in 2005 and then held it, it would be worth more than $1500 today.

It is also a good idea to build up liquid silver stores as well, which can then be used to make smaller purchases.

Whatever your reason for buying gold, you also can't ignore the fact that our world's financial system is currently built on massive debt that will one day have to be repaid, leaving many to speculate that during that time, it could spur our economy into a crisis.

Therefore, it also makes sense to have liquid gold on the side to protect against such a time.

And remember, setting aside a mixture of both physical gold coins and bullions helps ensure you have legal tender on hand for immediate trades while also preserving some in a safe jurisdiction for greater peace of mind.

Lastly, it is also recommended you only buy gold that was refined by the London Platinum and Palladium Market (LPPM) or the London Bullion Market Association (LBMA), which attests to its authenticity for faster liquidity.

Want a list of the top reputable and trustworthy Gold IRA companies?

We have done the research and compiled a list of the 5 best Gold IRA investment companies. Each company has unique assets to fit each financial situation. Click the link below to learn more for yourself.

Ask More Questions About Gold

Gold is not for everyone. It is a strong tool in helping others grow wealth gradually. It will not make you rich quick. It helps with diversification. To continue your journey deciding on a Gold IRA investment visit our Frequently Asked Questions Page.

Book a free webinar with an analyst

If you've decided that it is time to seriously inquire about a gold backed IRA, we recommend the free webinar review to get a personalized insight into your eligibility.

Click here to move onto the free webinar offered by Augusta Precious Metals.

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Nathan Rosevear

Nathan offers insights and reviews around the highest rated precious metal IRA specialists. He is an investor in gold and silver industry.
His passion is helping Americans secure their finances through stable investing and provides such help by blogging valuable information for investors to make sound financial decisions.
Do you want some help figuring out your precious metals Investment? Feel free to give me a call at 604 603 7953.
Let me connect you with the best in the business based on your financial situation and help you save some time and maybe save you some hard earned money.
Nathan Rosevear is not a financial advisor. No financial advise will be given on phone calls. Investors are urged to seek professional advice when necessary.
Gold Investment review is paid to recommend some of the services listed on this website by referring you to the right companies. No additional cost is attributed to the investor.