Monex Prices and Tips for Buying Gold

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Gold prices have risen in the last several weeks, mostly due to the uncertainly in the world market. With Greece’s recent economic turmoil, the uncertainly of the euro and the fear that the US may default on its bonds, more and more investors are looking to precious metals such as gold to help protect their portfolios. The World Gold Council claims that gold has outperformed all other forms of investment this year, including equities, bonds and other commodities. Monex prices for gold are expected to continue to rise, and they may hit $2000 per ounce by next year. Does this means that potential gold investors should rush out and purchase a vast amount of gold? Not necessarily say the experts. Monex shares some of its top tips for buying gold.

Don’t Rely Too Heavily on Gold

Gold tends to hold its price up when other commodities are falling, but that doesn’t mean that investors should cover their entire portfolio in gold. Most experts in the field of precious metals trading will recommend that an investor’s portfolio be comprised of no more than 10% of gold assets. Some experts will recommend a higher amount of anywhere from 10% to 30%, while others will recommended that only 3% of an investor’s portfolio be made up of gold. The exact amount that an investor should purchase will have to be based on several factors, including how much they are willing to spend and what the current market factors look like. Most people add gold to their portfolio to hedge against major falls in the market, not to protect themselves from total world economic collapse.

Consider ETFs

ETFs, or gold exchange traded funds are a good way for investors to use gold as a short-term trading commodity. These are shares that can be traded on a daily basis. The difference between ETFs and other types of stocks is that ETFs are backed by actual gold, while other forms of stocks are usually tracked by future contracts. These stocks can be used to create short-term wealth and can be bought and sold at will. Managing these forms of stocks is relatively cheap as well. The average annual management fee for ETFs is around 0.4%.

Monex Prices Help You Store Physical Gold

Another highly recommended practice involves purchasing and storing actual gold. This is a good idea for long-term investors who are looking to use gold as protection of their investments, or for investors who want to use gold to build long-term wealth. Many gold brokers and world banks offer gold storage services for their customers. This provides the investor with secure storage and the security of knowing that the gold is held in their name. Storing physical gold does have a few disadvantages. For example, physical gold is difficult to sell very quickly. There may also be some storage costs involved, although over time, these storage costs are less than the annual fees associated with holding ETFs. Many gold storage facilities charge a percent per deal or annual storage fees. Over a period of time, it becomes cheaper to hold physical gold than it does to own gold ETFs.

For more than 40 years, Monex prices have been the most reasonable in the industry. Monex trades in several forms of precious metals, including silver, gold, platinum and palladium. The Monex Deposit Company is a trusted precious metals dealer that has provided more than $40 billion in client transactions since the company’s creation. Interested investors can use Monex prices and options for all of their gold purchasing needs, whether they are looking to purchase gold bullion or historic gold coins.