Key Takeaways
- The most standardized way of directly owning physical gold is by acquiring bullion bars.
- Be sure you are doing business with a reputable dealer and check the bars’ purity, form, size, and weight before purchasing.
- Keep in mind that purchasing gold bars comes with extra costs including storage and insurance and a sales markup.
The Gold-Buying process
Buying physical gold bars online is a reasonably simple process. One common way to purchase gold bars is through accredited retailers online. Browse gold bar products on reputable retail websites such as the American Precious Metals Exchange ( APMEX ), JM Bullion, and Wholesale Coins Direct. Select the aureate bars you wish to buy by slant, measure, and monetary value.
Online gold retailers typically give discounts to customers who buy larger quantities. Certain retailers give discounts for purchasing by credit card, while others do so for cable transfers, so be certain to choose the most cost-efficient payment choice. When you receive the gold bars, keep them in their promotion to prevent scratches and store them in a home condom or safety deposit box at your savings bank. Note that you will likely be creditworthy for paying for delivery fees and indemnity .
You can besides bid on gold bars on eBay and alike auction sites. When shopping for aureate on the auction web site, it is significant to review the seller ‘s feedback. invalidate buying from sellers with attested negative feedback on authenticity, exorbitant ship and treatment fees, and failure to deliver .
Gold-to-go ATMs are available if you wish to buy gold bars in cities such as Las Vegas and Dubai. Consumers are advised to be specially aware of the spot monetary value of gold because such ATMs sell the precious metallic well above this price and above the prices of most other retailers .
Buy Pure Gold lone
Investment-quality gold bars should be at least 99.5 % ( 995 ) pure gold. The remainder is an debase, normally ash grey or bull, that makes smelting possible. People who purchase amber bullion as an investing should merely buy a stripe that features the name of its manufacturer, its burden, and its purity, normally expressed as 99.99 % stamped on its front. popular mints that produce gold bars include the Royal Canadian Mint, Perth Mint, and Valcambi .
Know the Difference Between Bars and Coins
Though all forms of pure gold have significant monetary value, not all investment-quality gold is equal. From an investment position, investors who want to add the physical product that tracks the price of gold may wish to avoid amber coins. These coins often feature attractive designs, have historic value, and contain a lower quantity of amber but however cost more ascribable to their numismatic value .
In summation to costing more, gold coins sometimes skew the value of an investor ’ second portfolio. For exercise, the highly see american english Eagle coin produced by the U.S. Mint contains 91.67 % gold but costs more than plain gold bars because of its value as a collector ’ second piece. Some investors may want collector ‘s items, while others may want knit gold bars, which typically are the easiest to hold long term and convert to cash. For this reason, plain amber bars tend to be a popular choice among investors seeking gold as a safe haven investment .
Buy Gold in Workable Sizes
Gold stripe buyers should consider the facilitate with which they can liquidate the bars as separate of the bribe serve .
For exemplar, if gold is selling at $ 1,400 per snow leopard and an investor has $ 14,000 with which to buy gold bullion, they will normally have an easier meter selling the amber down the road if they buy 10 bars that weigh 1 ounce, preferably than one 10-ounce bar. They can sell the 1-ounce bars one at a clock as needed, while they might have a harder time finding a buyer for the 10-ounce legal profession if they need to sell promptly. conversely, considering the bantam size of -gram gold bars, investors sometimes save up to buy bars of a more solid size .
digression from bars and coins, it is besides potential to buy physical amber in the form of jewelry. broadly, gold jewelry tends to be sold at a significant price markup because of craft and retailer costs. For this reason, jewelry is not normally seen as a potent method of investing in gold .
shop Around
Investors should be aware of gold ‘s spot price when browsing the bullion market. Finance websites that display breed tickers normally display the day by day monetary value of aureate .
gold is fairly easy to buy, but prices vary greatly as sellers include their craved profit gross profit plus extra costs such as authentication certificates, transportation and wield, and requital action fees. A price comparison including the different sellers ‘ charges is key to getting the best price on gold bars .
Avoid Rip-Offs
Gold bar buyers should review websites such as the Better Business Bureau and Ripoff Report to learn more about a gold seller ’ mho reputation. In general, reputable gold sellers must disclose all the fees required to close a transaction upfront .
Buyers in the U.S. should besides do their due diligence before buying amber from sellers overseas. even when the gold bars are authentic, seller charges may be exorbitant, and buyers might face issues clearing the gold through customs, depending on the measure purchased .
Investors should be aware that gold as a commodity tends to perform well during economic recessions. During periods of economic convulsion, a larger number of investors may be inclined to look to gold as an investing opportunity. These are periods in which potential aureate scammers may be most active as well .
Consider Alternatives
Investors looking to benefit from a gold investment may besides wish to consider collateral access to gold through investments in aureate mine stocks, gold-focused ETFs or reciprocal funds, or gold futures contracts. Each of these investments may be tied to the broader performance of gold, but provides a room of diversifying a portfolio beyond physical bullion .
Investments in other types of cute alloy bullion, such as silver, provide another mean of diversification beyond gold bars .
Read more: How To Invest In Commodities | Bankrate
The Bottom Line
Physical gold possession involves a numeral of unique costs, including storage and indemnity costs, and the transaction fees and markups associated with buy and selling the commodity. There can besides be processing fees and minor draw fees for investors making smaller purchases .
Though these costs may not significantly affect person looking to invest a little dowry of their portfolio in gold, they may become prohibitive for investors seeking to gain larger photograph .
