The first thing to learn about how to invest in gold is to gain the understanding about Why to buy gold. Owning gold is it’s own payoff. Speculating in gold is risky and can be time consuming and costly. Investing in gold is a form of financial planning. While the nuances between owning, speculating, and investing may seem a bit complicated, they are not, and a few minutes from now you will understand all three forms of holding gold coins and gold bars much better.

Owning Gold

Owning gold is a long-term strategy. When you buy bullion gold coins or rare gold coins with the intention of owning them, this is more like the idea of buying a wedding ring for the love of your life. You don’t ever intend to sell the ring or borrow against it, but if you ever had to, you know you could. A wedding ring is a symbol of commitment, faith , and comfort. The analogy between gold coins and wedding rings also holds true against inflation, or the weakening of the U.S. Dollar. Forty years ago you could buy either a nice wedding ring or a few gold coins for $1000, today, not so much.

Speculating On Gold

Speculating on gold coins or gold bars would be more akin to buying a wedding ring for someone who you are passionate about, but not ready to spend the rest of your life with. You might be moved in the heat of the moment to buy an expensive ring and propose, but you are truly unsure about how things will work out in the end, you just hope for the best. You may find a lifetime of love and family follow the wedding ceremony and you win, or you may find a heart breaking split and a vanishing act that takes the ring you purchased along with it, and you lose. Speculating on gold is dangerous, and ITM Trading does not suggest holding gold for the short term.

Investing In Gold

Investing in gold means buying gold with the idea of selling it at a later date and getting more than you paid for it. To continue the wedding ring analogy, this would be like buying a wedding ring for someone, knowing that later down the line you would definitely be getting a divorce. You are just hoping that while you are married you are comfortable, and that when you come out of the divorce you are better off financially than when you went in. Basically you would be hoping to capitalize on the wealth or work of the other person. Ironically, in American culture these people are called “Gold-diggers” and this is not a flattering term.

The wedding ring analogy can be deeper yet in respect to investing in gold. Even though you might get married with the idea of getting a divorce a few years later, life won’t be great in the meanwhile, and you probably won’t end up much further ahead than if you had just enjoyed yourself and worked towards your own gain. You see, gold is a financial constant, one ounce of gold will always be one ounce of gold, only the amount of Dollars it takes to acquire the ounce of gold will change. More than likely if you buy gold and hold it for five years and sell it at a 10% profit, you will find that everything around you has also gone up in price 10%. The benefit to investing in gold is that while you hold it, you have a constant, that is, you are not alone.

Own Gold For The Long-term

ITM Trading suggests owning gold for the long term, and only putting 10% to 20% of your wealth into gold coins and gold bars. Like a life-long partner, gold coins will be there when you need them. Gold bars will offer comfort and support. Their worth will not desert you. They will both increase in value over time, just like the perfect spouse.