Did you know that close to 11 percent of people in the United States of America are buying and selling gold as a way to grow and protect their wealth? Trading with gold is a wonderful and effective way of making your investment portfolio more diverse, but there are a number of mistakes in gold trading that you need to avoid if you want to have the most success.
Failure to come up with a viable gold trading strategy is a sure way to waste your investment potential and decrease your gold trading profits. You need to be patient and find the right gold trading platforms when you decide that it is time to start trading with gold.
The good news is that you’re in the perfect place to learn all about these gold trading mistakes and the steps you should take in order to avoid them. Keep reading this article for seven helpful tips today!
1. Lacking a Clear Goal
Many people will tell you that trading with gold is a great idea for growing your wealth and hedging against changes in the market. That is great, but you need a clear goal that you’re aiming for with your gold trading strategy in order to have success. Many great investors view buying and selling gold as insurance on their wealth should something happen to the global economy.
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Other investors are focused on creating the largest gold trading profits possible. If you want to grow your wealth with gold trading platforms then you need to understand your goal and your purpose from the start. Be clear with the gold broker about your purpose and they’ll help you get started on the right path.
2. Working With the Wrong Gold Trading Platforms
Most investors choose to go about buying and selling gold through a dealer. Others buy gold bars online because it is quick and easy. Having an understood gold trading strategy will make it much easier to ensure that you find the right trading platforms and gold dealers to work with when you start trading with gold.
Make sure that you vet the dealer before doing business with them in order to guarantee that they are legitimate. Go online and check out reviews to make sure that they have a positive reputation and that they have years of experience in the gold and precious metal industry.
You should also aim to avoid dealers that try to put pressure on you. A good gold broker will work with your schedule and your time rather than trying to pressure you. Most of all, make sure that the gold trading platform buys back, otherwise, you’re setting yourself up to get scammed.
3. Getting Mining Stocks
Mining stocks carry some value but it is not the same thing as buying and selling gold with your investment portfolio. You can add wealth to your portfolio by investing in mining stocks but that does not mean that you’re adding gold to your wealth.
Buying gold means that you own that gold. Buying mining stocks means that you own a stake in the mining company that is mining for physical gold. If the value of gold goes up or down, so does your wealth when you own physical gold bullion.
Don’t make mistakes in gold trading like thinking that mining stocks are the same as investing in precious metals like gold.
4. Fear of Government Confiscation
In the year 1933, United States President Franklin D. Roosevelt made it illegal for citizens of the United States of America to own gold. Interestingly, it was still illegal for U.S. citizens to own gold up until the year 1975.
The only exception when it came to owning gold in the United States was through rare coins. You’ll run into rare coin dealers that will try to get you to purchase their coins based on the fear that the government will make gold ownership illegal again. A big part of this was the conversion rate between gold and the United States dollar.
Gold and the dollar are no longer equal in value which means that the government has no incentive to take your gold after you move forward with buying and selling gold.
5. Failure to Control Your Emotions
As with any type of trading, it is vital that you control your emotions and avoid getting too high or too low. If you plan on buying or selling then do it because your goals changed or because you’ve made changes to your gold trading strategy.
It is a huge mistake in gold trading to start buying or selling gold because you’re feeling a rush of over-confidence. It is also a mistake to start selling off all of the gold in your portfolio out of fear.
6. Falling for Scams
It is as sure as anything that you’ll run into scammers when you’re working in a lucrative industry like buying and selling gold. You need to be aware that there are scammers out there that will try to sell you fake gold in order to get your money. Make sure that you trust your instincts when it comes to scammers.
If you find a great deal that will help you make great gold trading profits then you need to think twice. If you feel like it is too good to be true then you should avoid it altogether.
7. Don’t Store Where You Buy
It is a horrible idea to store that gold that you’ve invested thousands of dollars in at the same place that you purchased it from. It puts you in a position where you no longer have your money and your gold is in the possession of someone else. Your best bet is to find a reputable third party to store it or get it delivered directly to you.
Avoid These Costly Mistakes in Gold Trading
Gold trading is a great way to grow your wealth and protect yourself against things like inflation and economic downturns. There are certain mistakes in gold trading that you need to avoid, like storing your gold where you bought it from and not having a gold trading strategy. You should also do your best to keep emotions out of buying and selling gold.
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