Page 90 - Introduction to investing in Gold

The Beginner's Guide to Investing in Gold
Set up an Account with Bullion by Post
Whilst I use Interactive Investor to buy shares, I get (and store) my physical gold with Bullion by Post. I should add that they also take care of the insurance.
I’ve already covered this, but I’d view physical gold as being at the lower end of the spectrum on the risk curve, so I like to have some.
Research Investment Ideas
Having put funds in the accounts, I then use the B.R.I.D.G.E system to select the shares that I’d like to buy through my Interactive Investor account. I do a lot of research before parting with my hard-earned money.
Even if I get a “tip”, I still like to research it. At the end of the day, it’s your money being invested. Whilst the person giving you the tip will no doubt want a beer if it goes well, you’re unlikely to get anything if it doesn’t!
Invest in line with your strategy
This is where a lot of people get it wrong. Please don’t be one of them. I’d suggest you only research companies that fit your strategy.
It’s common for investors to get excited about the potential of a high-risk company and invest in that at the expense of a lower-risk company. Sure, it could take off, but if it doesn’t, you’ve only got yourself to blame.
As I’ve said before, you really need to think about what you want to achieve. I look at my investments as a football team. A good football team is strong in all departments. Sometimes they win games because their goalkeeper, defence, or midfield are so good. It’s NOT all about the forwards.
Just to remind you...because it’s important:
The largest multi-national miners are my Goalkeepers. They tend to be large companies (often with market values over $10bn) that produce several different commodities, so I would view them as lower risk.
Next up are the defenders. Again, these are large companies, but they’re often focused on one country or one metal, so higher risk.
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