Is buying gold investment or speculation? Well, that depends on how you look at things. Gold is looked at as an investment. When buying gold there are many factors which come into play such as timing, location, demand, price and etc.
Timing
When you buy gold makes a big difference on whether you will turn a profit or protect your money against inflation. Buying gold is an important decision to make. If you decide to buy gold when gold is at high you will only make money when gold reaches a higher peak. Unlike the economy gold’s price cycle is for the most part predictable.
Location
Where you buy your gold is important part of the decision making process. There are companies out there whom sell directly from the factory. It is better to buy factory direct and avoid markup from a retailer. When buying factory direct make sure you are able to test whether it is real or not. If you are unsure you can buy something cheap and have it professionally inspected. It is also important you read what you are buying sometimes manufacturers may sell something which is gold plated which does not have the same value as pure gold.
Demand
Demand is a key element when selling if you buy low. If gold is in demand it is better to liquidate and reinvest your money elsewhere. Demand affects the price in which you can sell your gold. When selling make sure you do your homework and search for as many buyers as possible. There are cases where people get excited off the profit from one potential buyer only to find out they could of sold it for more.
Price
When buying gold make sure you have comparables. Buying gold should treated as if you are buying a house. When you buy a house you don’t jump at the first house you see. If you can you should stay away from malls and try to buy factory direct. When you buy something which is common like a particular style chain chances are prices won’t fluctuate too much between retailers, but if you buy something no one really buys you possibly get a good deal if the retailer is having trouble moving the product. Stores who are going out of business is a good buy as well.
Is buying gold investment or speculation? It is up to you to decide. Good luck!