The economic climate these days is quite uncertain all over the world. This is a source of great concern for investors which has led to a lot of them looking more to gold as a great investment asset. This is primarily because of its reputation as a safe haven investment.
Experience and time have shown that investing in this precious metal is a hedge against inflation such that no matter the level of market volatility, its value remains constant. Through the years, gold has been a symbol of wealth all thanks to it being a great store of value. This reputation is still the same to date.
Based on the above, many people find it quite attractive to invest in this precious metal. However, not as many have gotten the full benefit of their investment; the primary reason for this is the investment company they used. In this article, therefore, we will briefly discuss types of gold investments and share some tips on how to choose the best Gold Investment Company to work with.
Table of Contents
Types of Gold Investments
Below are the different means of investing in this yellow metal:-
- Physical Product – This includes precious metal coins, jewelry, bullion (bars), and collectibles.
- Gold Trading Instruments – This includes futures and options and CFDs.
- Gold Accounts – This includes IRAs, SIPPs, certificate programs and bonds
- Gold Securities- This includes mining stocks, ETFs and funds.
- Digital Gold – Gold-backed cryptocurrencies.
- Gold Mining Companies and Royalties
You can read this report for more details on these forms of investment.
Factors to Consider Before Choosing a Precious Metal Investment Company
As we stated at the beginning of this article, the success of your investment depends largely on the company you choose to work with. It is therefore expedient that you carefully consider the type of company you want to work with based on the following:-
Reputation and Credibility
When looking for a company to invest with, it is important to consider the reputation and credibility of the company. Look at how long they have been in business and their reputation in the precious metals industry. There are many ways of finding out whether they are credible or not. This includes checking out their client list and their ratings on independent 3rd party review sites.
Additionally, you should read reviews about the company and what their existing or previous clients have to say about them. The testimonials of people who have invested with them will go a long way in giving you insight into their credibility and reputation.
Certifications and Licensing
Ensure that the firm you are considering has the license to operate in the region and relevant certification(s) that qualify them to be in that line of business. Furthermore, they must be accredited and regulated by the relevant authorities. This assures you that the company you want to work with adheres to the best practices of the industry and works within the legal framework set by the government.
Products Offered
Look out for a company that offers a wide variety of products (check out the different types of gold investments mentioned above). A company with a wide variety of products is your best bet because of the different options you can choose from.
Transparency and Pricing
This is also an important factor to consider because you need to work with a company that is transparent about every aspect of their dealings; from pricing to terms and conditions and exit strategy. If you make the mistake of a company that is not up-front with its fee structure and pricing policies, you are most likely to experience some unpleasant surprises such as hidden costs and unfavorable terms and conditions.
Professional Expertise and Company Experience
You need to check out the expertise of the company’s staff. Find out the type of people that work with them and their qualifications. Also, check out the working environment and how long their staff works with them. You can check out this review of Goldco for a sample of what to look out for. Bear in mind that a company with high staff turnover may be in danger of folding up at any time.
Additionally, the longevity of a company is a testament to its capabilities, credibility, and great reputation. Ensure that you do not end up with a flash-in-the-pan organization.
Storage and Security
This is an important factor for those who want to invest in the physical commodity. Consider the storage options that the company offers and the security measures they put in place to safeguard their clients’ assets. Look out for a firm that uses state-of-the-art security and has solid insurance coverage.
Also, compare their storage and security fees with other companies to determine which one gives you the best value for money. They must also be in line with the standards set by the precious metal industry.
Exit Strategy
Exit strategy in this instance refers to the liquidation of your assets. You need to look out for a firm that will make it easy for you to liquidate your assets if you so desire. Consider only companies that offer flexible exit strategies and ease of liquidation when required. Steer clear of those who impose penalties or other stringent terms for early withdrawal.
Customer Service and Support
Never underestimate the importance of customer service as this determines the type of experience you would have with the firm. Ensure that the firm you want to work with has a responsive customer care unit that is always available to resolve issues and answer queries from customers.
Also, ensure that their representatives are knowledgeable enough to provide requisite assistance and expert guidance as you navigate the investment process.
Conclusion
We categorically stated at the beginning of this piece that the success of a precious metal investment depends largely on the gold company you work with. We have shared tips on how to select the best firm to work with. Bear these factors discussed above in mind and ensure that you consider them thoroughly before making a choice. This will help you make an informed decision and get the best from your precious metal investment.
