Gold has been used for financial transactions for thousands of years. It’s one of the most expensive minerals in the world as it has been used to adorn kings, emperors and pharaohs. It is also one of the best investment options any investor could have.

But just like any investment, there are certain practices that should be followed to ensure success of investment in gold. Gold is very easy to understand in terms of ownership and pricing but trading and earning could be challenging if you’re not careful.

The following are the things you should consider when you’re opting to invest in gold.

1. Gold is volatile in short term – never think that you’ll earn thousands of dollars in just one month. The contrary might happen to you if you’re not careful. Short term gold investment can offer easy earnings but can also cause great losses.

2. Consider it as part of portfolio – a general rule for investors should be applied to gold investment. Think of your gold investment as part of your portfolio. This means you will have to be observant on this type of investment or else you’ll end up losing everything.

3. Owning gold bullion is the only measure of ownership for trading – there are many forms of gold trading but most of them will not let you own physical gold. Acquiring gold bullion is the only method of actually owning physical gold. Other forms of gold in terms of jewelry will allow you to sell but never in real trading.

4. Gold is not money – gold is recognized around the world but it can never be used as money. You can enter into trading but not in the sense of giving gold for some product or services.

5. For safety reason, go for long term trading – the only way you can assure earnings in gold trading is to trade for a very long time. Patience is a key to success in gold trading. Short term investment, as already indicated, is a very risky trading practice even when you’re using gold.

6. Trading without the actual bullion – investors have many ways of trading gold even though they don’t actually own a single gold bullion. Gold ETF and futures are only some of the investment options anyone can use in order to trade gold without any physical contact to this expensive mineral.

7. Online trading with the right company – if you’re just starting in gold trading there’s a big chance that you’ll be doing your transactions online. Choose the right broker for this type of transactions. Many of gold trading companies can help you but there are a few that can scam you if you’re not careful.

8. Gold trading in relation to currency – one of the best ways to learn about gold trading is to study currency trading. This type of trading has almost the same volatile behavior as gold.

9. Scams exist – this is the most difficult part of gold trading. Because of the lucrative marketability of gold, there is a big chance that scams will happen everywhere. Even in established companies, scam could happen anytime. Here’s a small but very useful tip to avoid these scams: if the transaction sounds too good to be true, walk away.

10. Learn about the market – gold has been used for thousands of years and can get more lucrative in the coming years. Learn what you can get from this trend in order to gain financial advantage. Take your time to learn as rushing into this type of investment is not only risky but very costly.