Why Purchase Gold in 2013?

A new year is upon us; we’ve survived the holidays and associated festivities and now we’re starting to look at the year ahead and making our resolutions. One of my resolutions is to be more serious about my retirement planning. One of the things I’ve seriously been considering is whether or not to purchase gold as part of my overall retirement investment plan. But I’m not certain that now is the best time to purchase gold. Therefore, I’ve been doing some research and reading – a lot of both.

Did you know that Barclays, in London, says that they believe that financial factors that affect world markets will not affect gold? In fact, on 1/10/13, Barclays – as quoted in an article on Commodity Online – says that these other factors “…we do not expect to hinder gold in 2013.” (http://www.commodityonline.com/news/gold-price-to-average-$1778oz-in-2013-barclays-52173-3-52174.html) Which means that gold is going remain strong, so that’s one reason I should purchase gold this year.

Another reason I’m thinking that I should purchase gold? According to another article on Commodity Online says that gold will be bullish later in the year (http://www.commodityonline.com/news/why-gold-will-be-bullish-in-later-2013-52133-3-52134.html), which means I should purchase gold now, earlier in the year, if I want the best prices.

As part of my research, I’ve been looking beyond the United States, to understand the world demands for gold. After all, we’re now a global economy and what happens overseas affects gold prices here at home. On The Daily Reckoning, there’s an article that illustrates my point. It talks about how India is currently going through a “gold mania” and that the country is the largest consumer of gold, “…buying nearly a third of production in recent years.” (dailyreckoning.com/indias-gold-mania/) So if I purchase gold now, I pretty much have a ready market for it, should I want to sell it somewhere down the line.

But I’m thinking that I’ll purchase gold as part of a long-term investment strategy. I know that gold has been strong over the years, and that it’s a precious metal that holds its value. Further, I understand that with today’s economic chaos and political instability on a global level, owning a tangible precious metal – instead of paper stocks and bonds – gives me an investment that really is something, not just an idea.

Now I that I’ve decided I will purchase gold in 2013, I need to start the next phase of my research: what type of gold I will buy and where I will purchase gold from.

Secure Your Retirement with Gold bars

When purchasing gold bars, I'm always reminded of Indiana Jones or other wondrous adventurers. For me, purchasing gold bars always feels like a world-class adventure with a rich history. I feel honored to be in the company of the pharaohs and Kings who have come before me and helped create the mystique that surrounds purchasing gold bars.

Once you get beyond the idea of investing in gold with all of its romantic illusions, it's time to “get real” and consider where you should make your purchase. Personally, I would say that where or who you buy your gold from is the most critical aspect of gold buying. It's more than making sure that you are buying from someone who engages in ethical business practices, it's working with a dealer with whom you can form a strong relationship. Ideally, your gold dealer should be knowledgeable and personable enough to act as your advisor. So it needs to be someone you respect and know you can trust. But like a good marriage, if the fundamentals are strong, everything else will ultimately fall into place.

There's one thing every gold investor should make peace with and that is the fact that gold is not the best commodity if you want to make a fast buck. Although gold is notorious for attracting swindlers and hustlers, the fact is that gold is most valuable as a solid long-term investment. Whenever the economic conditions are grim or uncertain, as they have been for the last decade, gold grows in strength. Gold is the ultimate “back to basics” investment strategy. When all else fails, you can count on gold.

Gold can be purchased in a number of ways. Some love their stacks of gold bars while others traffic in coins, mixing the roles of being a collector and acting as an investor. Regardless of what kind of gold you choose to buy, the most important thing to remember is - buyer beware. So thoroughly the vet your gold store and over the long-term, you will be more than pleased with your investment.