Instead of intangible assets like gold exchange-traded funds, investors who want to experience the security, touch, and ownership benefits of owning gold may want to purchase gold bars (ETFs). At spot pricing, which is the price of unfabricated gold plus additional charges that vary depending on the seller, physical, investment-grade gold, also known as gold bullion, can be bought. If there is a complete economic collapse, which is highly unlikely, physical gold can be sold.
The Purchase of Gold
Online physical gold bar purchases follow a straightforward procedure. Online purchases made from authorized merchants are one popular method of buying gold bars. Visit reliable retail websites to look at gold bar products, like American Precious Metals Exchange (APMEX), JM Bullion, and Wholesale Coins Direct. Choose the gold bars you want to purchase based on weight, quantity, and cost.
Customers who purchase larger quantities of gold from online dealers generally receive discounts. Make sure to select the most cost-effective payment method when making a purchase because some merchants provide discounts for credit card purchases while others only offer them for wire transfers. Keep the gold bars in their packaging once you receive them to minimize scratches, and store them in a home safe or safety deposit box at your bank. Keep in mind that you’ll probably be responsible for covering the cost of insurance and delivery.
On eBay and other comparable auction platforms, you can also place a bid on gold bars. Reviewing the seller’s feedback is crucial when purchasing gold from the auction website. Avoid making purchases from sellers that have received documented complaints about authenticity, outrageous shipping and handling costs, and inability to deliver.
In places like Las Vegas and Dubai, you may purchase gold bars at gold-to-go ATMs. Because such ATMs sell the precious metal much over this price and above the prices of the majority of other retailers, consumers are urged to pay close attention to the spot price of gold.
Purchase Pure Gold Only Gold bars of investment quality must contain at least 99.5 percent (995) pure gold.
The remaining portion is an alloy, typically made of silver or copper, which enables smelting. People who buy gold bullion as an investment should only buy a bar that is branded on the front with the manufacturer’s name, weight, and purity, which is typically stated as 99.99 percent. The Royal Canadian Mint, Perth Mint, and Valcambi are three well-known mints that create gold bars.
Understand the distinction between coins and bars
All forms of pure gold are highly valuable in terms of money, but not all gold is of investment-quality. Investors who want to add a physical product that monitors the price of gold may want to stay away from gold coins from an investment standpoint. These coins frequently have appealing designs, historical significance, and only a small amount of gold, but they still cost more because of their numismatic worth.
Gold coins occasionally distort the value of an investor’s portfolio in addition to costing more. For instance, the highly prized American Eagle coin made by the U.S. Mint, which has 91.67 percent gold content, is worth more as a collectible than ordinary gold bars.
Plain gold bars, which are normally the easiest to retain for a long time and convert to cash, may be desired by some investors while collector’s goods may be desired by others. Because of this, buyers looking to buy gold as a safe haven investment frequently choose simple gold bars.
Purchase workable-sized gold
When purchasing gold bars, buyers should think about how simple it will be to sell the bars. For instance, if gold is selling for $1,400 per ounce and a buyer has $14,000 to spend on gold bullion, buying 10 bars each weighing one ounce is usually preferable to buying a single 10-ounce bar because it will be simpler to sell the gold later on. They can sell the 1-ounce bars one at a time as needed, but if they need to sell the 10-ounce bar immediately, it might be more difficult to find a buyer. In contrast, investors occasionally save money to purchase gold bars of a larger size due to the diminutive size of -gram gold bars.
In addition to bars and coins, jewelry made of actual gold can also be purchased. Due to craftsmanship and merchant expenses, gold jewelry is typically marked up significantly before being sold. Jewelry is therefore rarely seen as a reliable way to invest in gold.
Buyers of gold bars should research a gold seller’s reputation on websites like the Better Business Bureau and Ripoff Report. Reputable gold dealers should always be transparent about all costs involved in completing a transaction.
Before purchasing gold from foreign suppliers, American buyers should conduct adequate research. Depending on the quantity bought, even if the gold bars are real, seller fees could be outrageous and customers might have trouble getting the gold through customs.
Investors should be aware that gold often performs well as a commodity during economic downturns. A greater proportion of investors would be prone to consider gold as an investment possibility during times of economic unrest. Potential gold fraudsters may be most active around these times as well.
Think of alternate options
Investors who want to profit from a gold investment may also want to think about indirect access to gold by purchasing shares of gold mining companies, gold-focused mutual funds or ETFs, or gold futures contracts. Each of these assets offers a way to diversify a portfolio outside of physical bullion, even if they may be linked to the overall performance of the gold market.
Beyond gold bars, investments in other forms of precious metal bullion, like silver, offer another way to diversify portfolios.