6 most common mistakes in investing in gold – and how to avoid them

Investing in gold is increasingly interesting to more Finns.

August 14, 2026

The price of gold has risen sharply in recent years. Many have started for the first time

to invest in gold. At the same time, the most common mistakes are repeated in gold investing.

Again and again. Most of the wrong choices are not related to gold, but to how and on what

basis the investment decision is made.

We will go through the six most typical mistakes that investors encounter.

Contents

1. Constantly postponing your gold investment
2. The temptation of cheap gold
3. Understanding how the gold price is formed
4. Forgetting about gold storage and insurance
5. Putting everything into one large gold bar
6. Buying gold on emotion without a plan
Summary: how to avoid mistakes when investing in gold
Sources

1. Constantly postponing your gold investment

One of the most common mistakes is not related to buying, but to not buying. Waiting for the right moment

often leads to the investment decision never being made. The decision remains under consideration

time and time again.

The fundamentals of investing in gold determine

Many say in hindsight that they regret not buying gold a year or two ago. Looking back,
the moment always seems clear, but the same fundamentals that supported buying then often exist in the present moment as well. For example, the world has not changed in the past year, so right now is just as good a time to invest in gold as it was a year ago. What matters is that a decision is made at all.

2. The temptation of cheap gold

When gold is being purchased, the temptation to seek the lowest possible price is

understandable. However, the price of investment gold is always based on the world market price, to which

the seller's premium is added. The premium is typically a few percent. If the offered price

deviates significantly downward from this, it is almost always the case that the product being sold is not

what it appears to be.

What is cheap gold?

In practice, this can mean a gold-plated product instead of genuine gold. Or otherwise unclear

origin. The safest way to avoid this mistake is to buy from a well-known, reliable dealer.

3. Understanding how the gold price is formed

The precious metals industry is not price-regulated. This means that operators can essentially price their products however they want. The price does not have to automatically be based on
the world market price. When investment gold is purchased from a reliable dealer, the price is formed from the market price plus or minus the premium.

Premiums can also change

It is also good to know that premiums fluctuate with market conditions. If inventory levels are

low or product availability decreases, premiums can rise quickly according to the laws of supply and

demand. This happened, for example, at the start of the COVID-19 pandemic in 2020,

when some investment gold was sold at significantly higher premiums than usual.

4. Forgetting about gold storage and insurance

Many people only start thinking about storage once the gold is already in their hands. At home,

storage is possible, but then it is advisable to ensure that home insurance covers

valuables at a sufficient level. If the lifestyle is mobile and the home is occasionally empty

for longer periods, insured storage should be considered already at the acquisition stage.

Home is not the best place for storage

In Finland, thousands of burglaries and fires occur annually. In total, several

cases per day. This is not a reason to be afraid, but a good reminder that storage should be

planned in advance.

5. Putting everything into one large gold bar

One large gold bar seems like an attractive solution to many. In practice, however, most investors at some point need to realise part of their investment, for example because of an unexpected expense or a large purchase. If the whole investment is tied up in one largebar, the entire lot has to be sold at once, even if only part of the amount is needed. Remember the taxation of investment gold

Also remember the tax aspect. When the entire bar is sold, the entire profit generated from it

is realized for taxation at once, even if part of the amount is immediately reinvested in physical

gold. An investment divided into smaller amounts, for example into several medium-sized bars,

provides more flexibility to sell just as much as there is a real and genuine need to sell.

6. Buying gold on emotion without a plan

When the price of gold rises quickly, many buy it because they do not want to miss the train. The decision
is then based more on emotion and the actions of others than on an expert view of the factors driving the price.

Planning is always worthwhile in investing
This is not investment advice, but a general principle is good to keep in mind. When making an investment decision, it is also worth considering when and on what basis you might exit the investment. Planning, both in buying and selling, makes investing more profitable than reacting to a fleeting emotion.

Summary: how to avoid mistakes when investing in gold

Most of the mistakes in investing in gold do not relate to the gold itself, but to the decision-making around it.
Postponing decisions, making purchase decisions from unreliable sources, and deciding to invest in too large bars are good examples of this. Planning is the be-all and end-all of investing in gold. Plan the size of the bars to be purchased, the storage of the gold, and learn to understand investing, and you are already halfway there.

After this, all you need to do is make your purchase from a reliable dealer. When you are aware of these things in advance, you can make your investment decision calmly and wisely on your own terms. Jalonom is Finland’s largest and most trusted buyer and seller of gold, offering certified investment gold based on the world market price.