How to buy and sell gold for profit

When you think about how to buy and sell gold for profit, you have to think about many factors.

You have to get answers to the following questions :

1. Where to buy gold?

2. Should you buy physical gold or paper asset?

3.  When to buy gold?

4.  How much can you afford?

5.  How long can you afford to wait?

6.  Where to sell gold?

7.  When to sell gold?

8.  What are the transaction cost?

9.  Where to store physical gold?

10.what are the risks of investments?

All these are the basic questions before you even venture into gold investment.

All these questions are related to the main question of how to buy and sell gold for profit.

Most people make the mistake of buying gold, but they forget to think about selling gold.

If you know about buying gold, but do not know about selling gold, you are not going to make money.

Let us have a quick look at the possible answers for the questions above.

1. Where to buy gold?
You can buy gold from the local banks, goldsmith shop, pawnshop, coin shops, online sites, Ebay, and gold discussion forums.

2.  Should you buy physical gold or paper asset?
Best to have both.
However, when money is tight, you have to think about the purpose of buying gold.
Paper asset is good, but you do not own the gold.
If you buy the gold ETF, you have to pray that the fund does not close down in the near future.
Physical gold is good if you think about passing down to your children and grandchildren.  Many people inherit gold coins from their ancestors.

3.  When to buy gold?
After a gold crash, and when everyone is buying into the stock market.
It seems that gold price and stock market goes in opposite direction most of the time.

4.  How much can you afford?
You must have at least six months of cash available for emergency use.  You can then use the rest of the money for investment purpose.

5.  How long can you afford to wait?
Gold price is volatile.  If you need money within three months, you must not use it for gold investment.

6.  Where to sell gold?
When you guy gold from the banks, the goldsmith shop or coin shops, you can check the value of selling back to them.
Most will sell you at a higher mark up, and buy from you at spot rate.
If you buy from private sellers, you can ask for the original receipt.

7.  When to sell gold?
The best is when everyone is talking about buying gold, and the price reaches a new high everyday.

8.  What are the transaction cost?
Depends on whether you buy physical asset or paper asset.

9.  Where to store physical gold?
For long term, buy a safe at home.
For short term, such as the time when you go for a trip, you can bring to pawn shop.  The interest rate for parking the physical gold is usually lower than the bank charges for a safe deposit box.

10.  What are the risks of gold investment?
The risks are many.  You can think about the fluctuation of US dollar, the wrong timing, the lack of buyers, the sudden and urgent need of money that makes you sell at a loss.

As long as you remember that there is no such thing as a safe investment, you will exercise prudence in investment.

Just remember that luck and knowledge are equally important when it comes to the question of how to buy and sell gold for profit.