Top 4 Mistakes to Avoid When Investing in 1-ounce Gold Bars in July

If you want to ensure that your investment portfolio is prepared to weather financial storms, there may be no better asset to invest in than gold. For starters, gold is a well-known safe-haven asset, meaning that it tends to retain or increase in value during periods of economic uncertainty. That, in turn, helps to offset losses from other assets when the market is volatile. 

Gold is also an effective tool in terms of portfolio diversification and inflation hedging — both of which are valuable in today’s inflationary climate. And, gold’s recent upward price trajectory has only added to the allure. Since the start of 2024, gold’s price has hit several new record highs, climbing to $2,160 per ounce in early March before hitting $2,439.98 per ounce in late May. 

Gold prices have cooled a bit in the time since, but there are still many good reasons to buy in. And, there are numerous options to choose from, including gold IRAs, gold stocks and gold bullion. However, 1-ounce gold bars, in particular, may be worth a look, as these compact bars offer a mix of affordability, accessibility and value. But if you’re going to take that route, be sure to avoid the costly mistakes outlined below. 

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Investing in 1-ounce gold bars this July? 4 costly mistakes to avoid

If you plan to invest in 1-ounce gold bars this July, here are some of the expensive mistakes to watch for:

Ignoring current market trends

Timing the gold market can be tricky, but you should still pay attention to market trends to try and make an informed decision on when to buy in. After all, failing to research and understand recent price movements and market sentiment could lead to buying at an inopportune time, which could be a costly mistake, especially if you buy at a peak. 

So, stay informed about geopolitical events, economic indicators, and central bank policies that could impact gold prices, as these factors play a crucial role in the gold market. Being aware of these trends can help you make more strategic investment decisions.

Overlooking storage and insurance costs

Many new gold investors forget to factor in the cost of secure storage and adequate insurance when buying physical gold bullion. While 1-ounce gold bars are convenient to store, it’s essential to consider the fees for storage and insurance, as they can impact your overall investment returns.

When investing in physical gold, make sure to account for annual storage fees that can range from 0.5% to 1% of the gold’s value. Additionally, ensure your homeowner’s insurance covers the full value of your gold bars to mitigate potential risks. Assessing these costs beforehand can help you plan your investment strategy more effectively.

Falling for counterfeit products

Given the high value of gold, there’s a risk of encountering counterfeit products in the market. To safeguard your investment, it’s crucial to purchase 1-ounce gold bars from reputable dealers with established credibility.

By being cautious of deals that seem too good to be true and verifying the authenticity of your gold bars through professional assay services, you can protect yourself from falling victim to counterfeit scams. Investing in genuine gold bars ensures the preservation of your wealth in the long run.

Misunderstanding the impact of premiums

When purchasing 1-ounce gold bars, it’s essential to consider the premiums added to the spot price of gold by different dealers. Failing to compare and assess these premiums can lead to overpaying for your gold investment.

To avoid this pitfall, diligently research and compare premium rates from various dealers to ensure you’re getting the best value for your investment. Additionally, be cautious of significantly low premiums as they may indicate potential risks associated with counterfeit products.

The bottom line

Investing in 1-ounce gold bars can be a valuable addition to your portfolio, provided you navigate the potential pitfalls wisely. By addressing the highlighted costly mistakes and conducting thorough research before making investment decisions, you can maximize the benefits of owning gold and secure your financial future.