1. Understand the Difference Between Owning Real Gold and Owning Gold Mining Shares
Owning gold stocks add more risk to your portfolio because you are exposed to the volatilities of the stock market. It is not really investing in the precious metals at all, more investing in the stock market. You don’t want to have to spend your time analyzing balance sheets and company performance statistics. Also your money would still be in just ‘paper’ and not a tangible asset. To avoid this first mistake, stay away from stocks. Buy physical bullion and store it in a secure vault to ensure peace of mind and security knowing you have full control of your asset.
2. Having No Plan
In Stephen Covey’s book ‘The Seven Habits of Highly Successful People’, he states ‘Begin with the end in mind’. Investing requires a solid plan. You should know what your goals are and invest in ways that will bring you closer to the desired outcome. If you fail to plan, you’re planning to fail.
3.Buying Numismatic Coins Instead of Bullion
Once you have made the decision to invest in gold, do not make the mistake of thinking that numismatic coins have the same value as gold bullion. Numismatic coins derive their value not just from their low gold content but also from the rarity and collectability of that particular coin. It is hard to evaluate the purity of such coins. To avoid this mistake and the risk of them containing high levels of copper and other non-precious metals, stay with standard gold bullion.
4. Buying From Multiple Dealers
Many new investors make the mistake of buying gold bullion from several different bullion dealers. It’s not only more difficult and time consuming to buy from different dealers, you will also pay many different markup prices. Avoid this mistake by buying in bulk from one dealer. This will limit the expenses and lower your overall costs, due to the better rate you will receive.
5. You Must Take Action
Many self-improvement coaches and gurus all talk about “taking massive action”. Taking action is probably the most important step in the whole process, but if it is so simple, why don’t we do it?
Fear- Fear is the single biggest obstacle holding people back. Anthony Robbins refers to it as:
F. False
E. Evidence
A. Appearing
R. Real
On the other hand fear is what also keeps us alive and away from danger. It is very important to be able to decipher between the two.
Being to late to buy is a big mistake many new investors make. You want to buy towards the start of the cycle, not the end.
Michael Martin is a well respected gold investor and author. He teaches financial education and thinks there is no better opportunity today than to be investing in gold. For more information visit,
