There are many mistakes made by the new investor who simply want to know how to buy gold and silver which is genuine and safe. Here are the three most common:
Mistake No.1 - Following The Crowd
When new investors see large numbers of people rushing to buy gold, they follow. With everyone just blindly following the herd without any knowledge or understanding as to why they are buying at that moment, it's a great gamble and they would need a good dose of luck.
Before following the crowd you have to do your own research and check that this is actually the right time to buy. Usually when there is a rush or panic, it is because it is too late in the day, they've already missed the boat. So always be prepared and acquire enough knowledge to establish whether these followers are like lamb to the slaughter or really onto a good thing.
Mistake No. 2 - Buying gold coins from the first seller they come across
When new investors are ready to buy and especially if they are panic buying, will have a tendency to buy gold coins from the first dealer they come across.
Also, not knowing that there are varies ways and forms with which they can acquire and own their gold. There are so many companies out there selling gold and silver, can you tell the difference between the reputable ones and the downright dishonest scammers. Gold and silver investing is a game of knowledge, understanding and patience, so if you haven't got any of these prerequisites then you're in for a rough ride.
So, before buying, it's inevitable that you need to ramp up your knowledge, beware of the scams. Here are a few of them:
Counterfeit numismatic coins:
This is where the gold is substituted with cheap metal, this is done so cleverly that the untrained eye will never be able to tell the difference. Online you will find the "certified and "slabbed coins" which are supposed to be securely encased but they are cleverly removed from their slabs and replaced with coins of lesser value.
Pyramid Schemes:
This is where you are required to sign up with an initial large outlay and a continuity program as well trying to get your friends, family, all and sundry to join up, much like free marketing for the company involved. May work for some, but for the majority, all they want is to own their own genuine physical gold without all the added hassle.
Commercial Advertisements
Running these types of ads in magazines or on TV, are usually very expensive and customers are expected to pick up the tab. On top of this there is usually a time lapse between writing up of the ad and when the actual ad is aired or printed, which means the real price of the gold or silver becomes insignificant. This is much like a silly game for the unsuspecting new investor. Don't pay attention to any of these ads.
This is a small list of many, so don't get caught out, do your research.
Mistake No. 3 - No Due Diligence
This is where most people go badly wrong, they decide they just want to go ahead and do it without knowing any of the options, the pitfalls, the possible risks and scam artists. It is vitally important to have a thorough understanding of what you're doing, who you should buy from, when to buy, when to sell and to be aware of the possible risks.
Read books, learn the history, scan what the experts are doing and saying, stay abreast of the price fluctuations and watch how the world economy is behaving or shall I say misbehaving.
Visit http://www.goldandsilverinvestments.co.uk for more tips and tools on how to buy gold and silver.
Mistake No.1 - Following The Crowd
When new investors see large numbers of people rushing to buy gold, they follow. With everyone just blindly following the herd without any knowledge or understanding as to why they are buying at that moment, it's a great gamble and they would need a good dose of luck.
Before following the crowd you have to do your own research and check that this is actually the right time to buy. Usually when there is a rush or panic, it is because it is too late in the day, they've already missed the boat. So always be prepared and acquire enough knowledge to establish whether these followers are like lamb to the slaughter or really onto a good thing.
Mistake No. 2 - Buying gold coins from the first seller they come across
When new investors are ready to buy and especially if they are panic buying, will have a tendency to buy gold coins from the first dealer they come across.
Also, not knowing that there are varies ways and forms with which they can acquire and own their gold. There are so many companies out there selling gold and silver, can you tell the difference between the reputable ones and the downright dishonest scammers. Gold and silver investing is a game of knowledge, understanding and patience, so if you haven't got any of these prerequisites then you're in for a rough ride.
So, before buying, it's inevitable that you need to ramp up your knowledge, beware of the scams. Here are a few of them:
Counterfeit numismatic coins:
This is where the gold is substituted with cheap metal, this is done so cleverly that the untrained eye will never be able to tell the difference. Online you will find the "certified and "slabbed coins" which are supposed to be securely encased but they are cleverly removed from their slabs and replaced with coins of lesser value.
Pyramid Schemes:
This is where you are required to sign up with an initial large outlay and a continuity program as well trying to get your friends, family, all and sundry to join up, much like free marketing for the company involved. May work for some, but for the majority, all they want is to own their own genuine physical gold without all the added hassle.
Commercial Advertisements
Running these types of ads in magazines or on TV, are usually very expensive and customers are expected to pick up the tab. On top of this there is usually a time lapse between writing up of the ad and when the actual ad is aired or printed, which means the real price of the gold or silver becomes insignificant. This is much like a silly game for the unsuspecting new investor. Don't pay attention to any of these ads.
This is a small list of many, so don't get caught out, do your research.
Mistake No. 3 - No Due Diligence
This is where most people go badly wrong, they decide they just want to go ahead and do it without knowing any of the options, the pitfalls, the possible risks and scam artists. It is vitally important to have a thorough understanding of what you're doing, who you should buy from, when to buy, when to sell and to be aware of the possible risks.
Read books, learn the history, scan what the experts are doing and saying, stay abreast of the price fluctuations and watch how the world economy is behaving or shall I say misbehaving.
Visit http://www.goldandsilverinvestments.co.uk for more tips and tools on how to buy gold and silver.
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