Buying Guide: Safe Ways to Buy Gold

Some investors want to not only enjoy the security of investing in gold but they also want to feel and touch their assets. For investors like this, intangible investments like gold ETFs and the likes just won’t cut it. Physical precious metals are usually preferable to people like this.

If you are one of such investors, then you may have several questions such as what is the safest way to buy gold, what is the process involved and more. Simply asking these questions won’t do.

This is why we are here to answer these questions and then some more. In this article, we will be discussing some things you need to know when buying gold.

The Buying Process

One of the easiest and yet safest ways to buy the king of precious metals is online. The process involved in doing this is quite straightforward to the point and doesn’t involve a lot of stress.

The first step to take is to find a reputable online store. Once you get one, you can easily select the product as well as the quantity you want to buy.

Some online precious metals dealers will even offer discounts to people who buy bigger quantities of the asset.

Also, some dealers may offer discounts based on the payment method you choose. For instance, some dealers may give discounts when credit cards are used for payment, while others may give discounts when wire transfers are used. So, you simply need to find out what the dealer you have selected offers and choose the better payment option.

Gold bars are also sold on eBay, so you can be bid for yours there. However, if you choose to do this, you need to be as careful as possible. Ensure you look into the seller and stay away from those who have several negative reviews on authenticity, delivery failure, and high handling and exorbitant fees.

What to Buy

When buying the yellow precious metal, you need to be very sure of its purity among other things. If you are buying the metal for investment, then it has to be not less than 99.5 percent pure. This is especially true for those investing in Individual Retirement Accounts. You can visit here to learn more about Individual Retirement Accounts.

Also, for investment purposes, the bar bought should have its purity, weight, and manufacturer on it.

Bars Vs Coins

Every form of this precious metal has monetary value. Yet, when investment-quality ones are considered, not all are the same. Hence, if you are buying this asset for investment, you want to be certain that they are worth it. You need to avoid coins with numismatic value. They typically have attractive designs, lower gold quantity, and are historically valued. They also tend to cost more.

If you wish to get collector’s items, this isn’t an issue. However, the best choice for investment is typically gold bars as holding them long-term is easier, the same way converting them to cash is.

Size

The size of the gold bar you buy should be one you can easily liquidate. Let’s give an illustration. Let’s say this precious metal goes for 1,400 dollars per ounce at the time you want to buy, and you have about 14,000 dollars to spend on the asset. This means your money will get you 10 ounces of gold.

Now, instead of buying just one bar of 10-ounce, the wiser choice will be to buy 10 bars of one-ounce. This way, when it is time to sell it off, you would easily get a buyer than if you had just 1 big bar.

Shopping For Gold

One thing to always have in mind as you shop for this asset is its spot price. As we have said already, buying this asset is not complex and doesn’t involve so many processes especially when you are buying from reliable online dealers.

Hence, you need to be sure of the dealer’s reliability, one way to do this is to check review websites and read reviews to learn how reputable they are.

Generally, reputable dealers disclose every fee that is required upfront. If you are buying from abroad, then you also need to do your homework. Sometimes, the bars could be authentic, but the charges could be exorbitant, this can create some issues when you try to clear your asset through customs.

Furthermore, you have to get a good deal when you buy the asset. One of the ways to ensure this is to know the asset’s spot price, check several dealers’ prices and then settle on a fair deal. You can figure out the spot price by looking it up on websites that display the price of this asset daily. Visit https://www.dailyfx.com/gold-price to find out the current spot price of gold.

Each dealer will often attach their profit margin to the spot price, they typically will also add additional costs like payment processing charges, handling and shipping fees, and authentication certificates charges. When you compare the prices of more than two dealers, you would end up with the best deal.

Conclusion

You can buy gold safely when you do your homework and ensure the dealer is as reputable as they come. However, it doesn’t stop at getting your gold safely; you also need to consider several other things as you shop, this is especially true if you are buying the asset for investment. In this article, we have discussed some important things you need to know when buying gold.