May 23, 2020 02:04 PM EDT By Staff Reporter, UniversityHerald Reporter

Gold is an ancient asset that has predominantly retained its value despite constant changes in the market. Many investors find the investment of gold beneficial as it is immune to uncertainties. However, if you are a beginner in the gold investment, you need to be cautious before attempting to penetrate the market.

For instance when acquiring Ingot 1kg in Covid-19 you need to be smart in your purchasing decision to acquire the best deals in the market. 

1. Legitimate dealers

The standard of maintaining a decent lifestyle is quite high in today's era, and most jobless citizens are turning to scammers to make a living. If you don't have prior experience handling the gold coins or bullions, then it is almost impossible to differentiate genuine from fake gold.

Adequate research is necessary to ensure you are dealing with genuine dealers. There is a need to ensure that the dealer is verified and not a scammer. In times like now, where there is a global crisis due to a pandemic, it is crucial to be intelligent while committing your income. The best dealers have a good reputation and favorable prices. 

2. Costs of acquiring the asset

Genuine gold is a rare metal globally, and securing such an asset attracts a considerable high amount of money. Most sellers will require you to pay a premium amount in addition to the gold market value. If you are not in a financial position to secure the investments, you can opt to try out in the future. 

The costs can also differ by country. If you're looking to invest in gold in countries like Denmark for instance, the price could be different from the United States 

3. Storage consideration

The demand for gold is considered high, and improper storage will leave it vulnerable to thieves. If you are considering investing in the physical metal, you need a secure place for storage. The best option is to approach banks and secure a safe to ensure proper storage. But if you have a safe storage facility on your premises, you can store it there comfortably. 

4. Type of gold you are interested in

Gold has diversified forms in the market. You can select from coins, bars, or bullion depending on your needs. Each of the gold types has its merits and demerits; thus, before investing, ensure you are well informed. Also, the prices of gold tend to differ depending on market conditions and availability. For instance, the cost of Ingot 1kg in Covid-19 is different from that of last year when the economic conditions were favorable. 

5. Taxation considerations

The taxation of gold differs depending on the type. For instance, if you have physical gold, it is not prone to tax in your possession. But once you opt to sell the asset, the gains from the sale are taxable. Other forms of gold are taxable, but their tax rates are quite low compared to other assets. 

Bottom Line

Due diligence is critical before opting to invest in the gold market. Despite many investors claiming that the assets are not prone to price volatilities in some instances, it is affected. Lastly, there is an increase in scammers in the industry, and you need to e cautious before investing your hard-earned cash.

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