Most people know Sebastian Vettel as the youngest Formula 1 champion in the history of the sport. At the tender age of 23, the German driver won his first title in the Abu Dhabi 2010 Championship. He continued his winning strike the next year by destroying his competition all through 2011, and was able to repeat his impressive accomplishment in both 2012 and 2013, making him one of the few people who have ever won the prestigious race four times in a row. He began his career racing for Red Bull before later on switching over to Ferrari, and his success story continues produce fine results on the pedestal, most recently grabbing the second spot in a close finish in 2015.
The man lives for his passion and it clearly shows in his track record.
What perhaps is less known about Vettel is that he’s also a prominent financial investor. With great success comes great fortune, and Vettel is determined to make the most of his price money and sponsorship deals by expanding his financial empire beyond his winnings. This is a multi-talented champion who strives to achieve whatever goal he sets his sights on. We managed to get a few previous minutes with the man, where he told us some of his secrets and financial investment tips for any fellow race enthusiasts looking to make a buck in other areas than betting on F1 drivers.
The best way to make a killing, according to Vettel?
Buy physical gold bars.
Investing in Gold Bars
The champion has invested a significant percentage of his earnings in a physical gold bar supply. Gold works as a finite currency, being treated as such by central banks and therefore worth holding, he says. It’s not a traditional investment, as you don’t necessarily trade your gold back and forth, but should hold on to it as a personal wealth insurance policy. Buying gold bars is a good way to keep your finances secure and growing until you’re ready to pass on the profits made to your children, or grandchildren. A beginner should start looking into gold bar investments first, before considering hedge funds, shares in mining operations or other more risky alternatives.
Vettel advises newcomers to start out with some bullion coins or bars, as these are sold at the spot price of gold. Most bullions are minted in one quarter, one half, or one oz form. There are heavier versions too, but for a beginner this should be more than enough to start out building a healthy portfolio. One-ounce gold bullions like the Krugerrand are among the most popular choices for most private investors, who usually have a more modest pool of funds to draw upon. There’s also the option of going for older, rarer coins. Gold coins with a collector’s worth attached to them are not just valued by sheer weight but also for their historical appreciation value and aesthetics. These coins are generally more expensive, but have the advantage over regular gold bars, given that their worth increases at a faster rate. The British sovereign is the most popular numismatic gold coin among collectors and investors. Another upside that Vettel points out is that all these coins are free from taxes and fees.
Most beginners start out by hiring a verified trader that can buy gold from a gold provider, to then be transferred to a personal depository account. An allocated account will allow an investor to own a personal supply of individual coins and gold bars, stored in a vault with a third-party custodian. Today, it’s very easy to buy gold bars online, either for home shipment or vault storage. Just look up a review site on how to invest in gold bars for sale with a reputable gold provider, and learn more about finding gold bars for sale and delivery. You can also find plenty of information on how to buy gold bars for your individual retirement account, rolling over your current IRA into a precious metals IRA backed by a privately owned gold bar supply etc.
Another example of buying gold is to put your money in companies with mining operations or gold deposit exploration. If this is more to your liking, it’s recommended that you diversify your investment by adding more than one company to your portfolio, as the risk of investing in these companies is greater than just putting money in pure gold bars. There are also gold options, stocks and futures, but here you need to remind yourself that you’re not actually the owner of any gold bars, but are simply betting on the future movements of the world’s market pricing of gold.
Financially savvy investors advise that any of these alternatives is a way to leverage your financial position, meaning you can boost the size of your original bet. As always, there’s no reward without a risk. If you put all your eggs in one basket, chances are you could lose some money if the gold price suddenly starts falling. On the other hand, there’s a pretty good chance that your investment will grow exponentially over a longer period of time, if you choose your cards wisely and play them accordingly. Buying gold bars has traditionally been a secure way to slowly grow your funds, as it’s considered one of the most recession-proof commodities on the global market. While company stocks and bonds are more volatile, physical gold bars tend to steady climb in price and are usually the first set of assets that jump up when the market goes down.
Most people take this safer alternative and are looking for gold bars for sale that can then be stored as a long-term financial backup, if the economy would face another crisis and causing the markets to crash.
As with all things in life, you should diversify your gold investment and proceed with caution before making your next move.
By investing in gold bars, you give yourself an advanced position in the race towards financial freedom, while avoiding the most common pitfalls.
We all like to go fast, but when it comes to personal wealth, it’s a marathon, not a sprint.