Page 96 - Introduction to investing in Gold

Ongoing work (contd.)
If you are thinking about buying and storing some physical gold, do your research sooner rather than later (see Chapter 4 for more). It might take you a long time to set up an account if there is some sort of “rush” for buying gold.
If you invest in a mining company, regularly check what they are doing. Keep up to speed with the value of gold (or whatever commodity you are investing in).
Select some companies that are active with the commodities you like. Get to know the companies; follow their activity as well as the commodity price.
It takes time to set up an account with a broker (they need to check several of your documents), so if this is something you want to do, it makes sense to start the process soon. This relates to both an account with a bullion dealer and an investment platform through which you can buy mining shares. It’s important to note that these are likely to be two accounts with different organisations. For example, you could set up an account on Interactive Investor through which you could buy some shares and then set up another account with Bullion by Post to buy physical gold.
Keep an eye on the AISC – are they similar to the levels when you invested? If they’ve changed, why have they changed?
Monitor the gold price (or the price of whatever commodity you’ve bought) – is it similar to when you invested?
Have any developments led to a change in your rationale for investing? For example, have interest rates changed? What is happening to inflation? Should you still classify it as a short-term investment, or is it now a more medium-term project? What is happening to the investment cycle?
Having made an investment, regularly “check in” with it to make sure the reason for buying it holds true.
It’s a volatile market, so be prepared for the value of your investment to move around.
Look at not just your particular investment but the overall market. Often, share prices move because of market rather than company factors.
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