Whether you're a seasoned investor or a beginner, gold is a popular way to preserve wealth.
However, without the right approach, your gold investment could cost you.
Here are the top mistakes to watch out for—and how to steer clear of them.
Limiting Yourself to One Type of Gold Investment
Gold can be bought in several forms—physical bullion, ETFs, mining stocks, or futures.
Mining stocks are more volatile and don’t always track gold prices directly.
Not Planning for How to Store Your Gold
Storage isn’t free—it often involves fees for vaulting or insurance.
Consider using a reputable depository or secure vault.
Falling for Gold Scams
Too many investors get burned by purchasing from shady dealers.
Doing your due diligence can save you from major losses.
Buying Based on Hype Instead of Strategy
Trying to time the market can lead to buying high and selling low.
Gold is better suited for wealth preservation than quick profits.
Mistake #5: Overallocating to Gold
Gold should complement your portfolio, not replace it.
Use gold to balance risk, not concentrate it.
Wrapping Up
By steering clear of these common errors, you improve your chances of long-term success.
Do your research, buy wisely, and always think long-term.
references: