I was interested in investing my paper money into something more solid, ie. precious metals, specifically gold and silver. These will be hard to come by eventually and will take over the world of paper money. I don't know if we will ever see the value for either go down like it did during the 'crash', so should I wait before buying any of either? The current price for both are fairly high and haven't changed much in recent years, so I wanted to ask those of you who know about investing or those of you who own gold and silver, what are your recomendations.
Also I'm not big with investing so if I do decide to ever buy them, what would be the best way or doing it?
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A few things to keep in mind when buying gold for investments:
1. Buy gold in coin or bar form because when bought as jewelry, the cost of work is included which hikes up the price more than the actual cost of the gold is worth. You will also be at a loss with gold that includes non-gold adornments (such as fake crystals) because those are added to the weight even though they are not gold.
2. Stick with the purer forms of gold (ie. yellow gold above 18 kt.). Best you can find are in forms of coins or bars.
3. Buy gold when the prices are lower and sell when they are higher. You can use goldprice.org to see what the rates are currently and what they were in the past years. Don't sell until you have sought more than one gold buyer because their rates may differ slightly; you'll want whoever can give you the closest to what your gold is actually worth, so know what your gold is worth before selling or taking anyone else's word for it.
4. Don't forget that you will have to pay zakaat for whatever gold you have every year that its in your possession.
What is your budget roughly for investing in gold/silver? Yes it is good investment.
That really depends on how much it's worth at the time of buying it. I have a decent amount saved up but I want to make sure I buy it when the price is at a fair value.
format_quote Originally Posted by *charisma*
Assalamu Alaikum
A few things to keep in mind when buying gold for investments:
1. Buy gold in coin or bar form because when bought as jewelry, the cost of work is included which hikes up the price more than the actual cost of the gold is worth. You will also be at a loss with gold that includes non-gold adornments (such as fake crystals) because those are added to the weight even though they are not gold.
2. Stick with the purer forms of gold (ie. yellow gold above 18 kt.). Best you can find are in forms of coins or bars.
3. Buy gold when the prices are lower and sell when they are higher. You can use goldprice.org to see what the rates are currently and what they were in the past years. Don't sell until you have sought more than one gold buyer because their rates may differ slightly; you'll want whoever can give you the closest to what your gold is actually worth, so know what your gold is worth before selling or taking anyone else's word for it.
4. Don't forget that you will have to pay zakaat for whatever gold you have every year that its in your possession.
5. Make sure your gold is stored in a safe place!
(1)(2)(3). Coin or bar was my original choice, though I've never bought either before. I was also not sure how to even begin with the process of starting or even knowing which places were worth looking into. Should I try to find someone locally? Online? Is there an Islamic / non-Islamic way of doing this? Etc. Prices do not seem to have changed much in terms of + or - recently and the prices only seem to be going up when looking at it long term so I want to make sure I get in on it before it gets even higher, but at the same time, I want to be sure it won't tank as it did in the past. But I guess that's part of the risk.
(4)(5). Definitely
Thanks for the info
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