There are several reasons why one would want to own physical gold bars. It’s nice to touch and look at but it’s also a safe and stable investment.
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Physical gold is also known as gold bullion and you can buy it at spot price, which is the price of gold plus extra costs. Gold bullion can be turned into money in the event of a complete economic crash, which makes it attractive to people who don’t trust the banking system.
But you may be wondering about how to buy gold bullion. This is a fair question because we so rarely interact with gold in our daily lives. Luckily for you, we’ve got the answers you’re looking for.
So keep on reading and we’ll walk you through everything you need to know about purchasing gold bullion.
The Process of Buying Gold
Purchasing actual gold bullion online is pretty easy. Find a precious metals dealer and look around the site to see if it feels legitimate. Check reviews too.
You can choose the gold bullion you want to purchase based on price, quantity, and weight.
Online gold vendors usually offer discounts to people who purchase bigger quantities. Some sellers will give discounts for using a credit card, while others would give a discount for wire transfers. Figure out what you’re preferred payment is and see if you can score a discount.
After you get the gold bars, you should keep them in their packaging. You want to make sure that they don’t get scratched. Put them in a safety deposit box at a bank or keep them in a safe in your house.
You can also purchase gold bullion on eBay. When you’re buying gold on auction sites, it’s crucial that you review the feedback on the seller. Don’t buy from people who have a lot of negative feedback related to failure to deliver, high handling and shipping costs, and lack of authenticity.
If you want, you can also look for a Gold-to-Go ATM. These machines are available in cities like Dubai, Las Vegas, and New York. People are advised to be very careful of the spot price of gold at these machines.
They tend to sell gold well above the actual price and gold and for more than most other vendors.
Only Purchase Pure Gold
If you buy a gold bar for investment purposes, it should be at least 99.5 percent pure gold. The rest will be an alloy, like copper or silver. This is to make smelting possible.
People who buy gold bars as an investment should only purchase bullion that bears the name of the manufacturer. The bar should also state the purity and weight. Purity is usually expressed as 99.99% stamped on the face.
Popular mints that make gold bars include Valcambi, Perth Mint, and the Royal Canadian Mint.
Know the Difference Between Gold Coins and Bars
While all kinds of pure gold can be liquidated for cash, not all investment-quality gold is the same. From an investor’s point of view, you might want to avoid gold coins if you intend to add the physical product that tracks the price of gold.
This is because gold coins usually contain a lower quantity of gold. However, they tend to cost more because of historic value and the intricacies of their designs.
Not only do gold coins cost more, but they can also skew the value of your portfolio. For example, The American Eagle coin contains less than 92 percent pure gold. However, it costs more than regular gold bars because it is valued by collectors.
Some investors may prefer to have a collectible coin. However, others might want plain gold bars. These are usually easier to keep long-term and also turn into cash.
Buy Gold in Workable Sizes
If you buy gold bars, you should consider the ease with which you can liquidate the gold as part of the purchasing process.
For example, imagine that gold is selling at $1,500 per ounce and you have $15,000 in cash to buy gold. You will have an easier time selling ten bars that are one ounce each rather than one bar that is ten ounces.
If you end up needing to sell your gold quickly for some reason, you can at least sell some of your gold. However, if you have just one bar, you’ll need to find someone with enough money to buy the whole thing. You can’t cut your gold into pieces and sell it that way.
However, a bar of gold that is only one ounce is very small. And a larger bar might be more attractive to certain buyers.
When you purchase gold bullion, you should review the seller’s site on platforms like the Better Business Bureau. This way, you can learn more about the retailer’s reputation.
Most of the time, a reputable gold vendor is going to disclose upfront all of the fees that are needed to go through with the sale.
The Importance of Knowing How to Buy Gold Bullion (Without Getting Scammed)
Hopefully, after reading the above article, you now have a better sense of how to buy gold bullion without getting scammed. As we can see, it’s important that you review the seller’s website and also consider what you want out of your gold investment. This will help you make smarter purchasing decisions.
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