How can I buy physical gold? In a world where this shiny metal has proven to be a pricey rarity, then it makes a lot of sense to want to know how to get your hands on it safely. Many people who have tried purchasing gold have either ended up losing their money to scammers or paying a lot more than they ought to have paid for the gold bars or coins. Today’s article will guide you on just how you should go about buying physical gold safely.
Investors who are out to enjoy the touch, feel, as well as security that stems from owning gold may wish to purchase gold coins and bars, instead of putting their money into assets such as gold ETFs (exchange-traded funds). Physical gold used for the purposes of investment is known as gold bullion, and you can purchase it at a spot price.
N.B: The spot price refers to the price of unfabricated gold plus a few additional costs, which often vary from seller to seller.
Investors who purchase gold during seasons when the market is favorable can liquidate their holdings in the event there is a total economic collapse.
The Buying Process – Where To Buy Gold?
Online gold retailers
Purchasing physical gold online is quite a simple process. One of the common ways you can achieve this is by checking out the services offered by licensed retailers online. All it takes is you browsing the gold bar products that are listed for sale on retail websites such as:
- American Precious Metal Exchange (APMEX)
- JM Bullion
- Wholesale Coins Direct
With such websites, you are allowed to select the type of physical gold products that you wish to purchase by weight, quantity as well as price.
You will, in most cases, get discounts for purchasing precious metals in large quantities from online gold retailers. Some will also give discounts to customers who pay for their gold using specific payment options such as credit cards and wire transfers. Such money-saving opportunities are worth checking out and taking advantage of, more so due to the fact that gold is in itself quite expensive.
It is highly recommended that you use a gold IRA to invest in physical gold since it is a structure that offers several benefits, the main one being that it provides investors with a tax shelter. Those who purchase and invest in gold through a gold IRA are required by the IRS to ensure that their gold ends up in a secure depository. Simply put, gold IRA holders cannot store their gold at home or at a local depository.
Those who decide to purchase their gold outside a gold IRA structure are, however, required to make personal arrangements to store the gold. If you follow this path, you are required to keep all products in their packaging to prevent them from getting damaged. You can, in this case, store the gold in your home safe, in a local deposit box at your preferred bank.
You also have the option to bid for and purchase gold on various auctions on eBay. Every time you are purchasing gold through the auction website, review the seller’s customer reviews and ratings. Keep off any sellers who have any documented negative feedback on the authenticity of their products. You should also avoid any seller who charges high shipping and handling fees or one who fails to deliver the product at the end of the day.
Investors can also purchase gold bars in high-end cities such as Las Vegas and Dubai. The downside to this approach is that the spot price of the gold sold through such machines is well above the spot price in the market and other retailers generally.
The Purity of Gold: Top Consideration for Investors
If you are like most people who purchase physical gold, then you are purchasing it for the purposes of investment and not just to hold on to it for fun. In that case, you ought to only hold investment-quality gold bars only. Those bars should be at least 99.5% pure. Most investment-grade gold should come stamped with information and features such as:
- The name of its manufacturer
- Its weight
Common mints/manufacturers of gold include the Royal Canadian Mint and Valcambi.
Which is The Better Option? : Gold bars vs Coins
There are several factors to consider before settling on gold coins or gold bars. Each of these forms of physical gold has its upsides and downsides, which you should consider before whipping out your checkbook.
Gold bars will in most cases enable you to capture more value as a gold investor owing to their higher gold content. They may, however, be harder to liquidate, since they are more expensive. Gold coins may, on the other hand, not give you as much exposure as gold bars, owing to their lower gold content.
A gold American Eagle coin is for instance only 91.67% pure, in comparison to most bars which are 99.5% pure. Gold coins however offer more liquidity since they cost way less than the bars, and are a common choice for novice gold investors.
It is common to find people getting started with gold investing by purchasing gold coins, and then gradually advancing to the gold bars as they gain more insights into how things work in this industry.
Safety First: Avoid Rip-offs
Expert gold investors will generally advise you to review consumer trust sites such as Better Business Bureau and Trustpilot to ascertain that your preferred gold dealer has a good reputation. Most reliable and trustworthy dealers usually disclose information about their products’ pricing.
Investors in the U.S. should also do their due diligence before purchasing any physical gold from sellers abroad. Even though the gold bars are authentic, the sellers may end up charging exorbitant prices ( one could actually end up saving a lot of money by buying their products locally). Also, clearing gold purchased from sellers abroad through the customs department may be quite hectic.
Finally, you should be well aware that potential gold scammers are usually quite active whenever the market situation is ripe for investors to purchase more gold. With the rising inflation rates, more people are looking into purchasing physical gold to diversify their portfolios, and this is an opportune moment for the scammers to strike. If you are trying to purchase your gold, therefore, be sure to deal with legit companies only, and make prior arrangements on how you will store it safely.
Frequently asked questions on “ How can I buy physical gold?”
1. How much does physical gold cost?
The price of physical gold varies from one seller to the next one. There is no constant or fixed price that you can use as your point of reference, but you can always shop around to find out which precious metal dealer is selling the gold at the lowest prices possible. I would, however, also advise that you do not go to the extent of dealing with gold dealers you are not confident about, just to get massive price discounts – you may end up with no gold and no money!
2. Who are the best physical gold dealers in the market?
It is hard to point out a specific gold dealer who is best for every investor. This is because every investor looks for different things when hunting for a gold dealer. If you are new to gold investing, however, you can click on the link below to check out our list of recommended dealers.
3. Are there any alternatives to physical gold that I can invest in?
Yes. If you do not have sufficient funds to purchase gold bars and coins, or if you do not believe physical gold is the best asset for you, then you can check out gold-based paper assets such as gold ETFs, Mutual funds that have gold mining stocks, gold mining stocks, gold futures, and options.
4. Is there a limit to the amount of physical gold I can purchase?
No. The government does not prohibit you from purchasing any amount of gold, but you may be subject to certain restrictions if you use certain gold investment structures. Generally, however, you can purchase as much gold as you want, provided that you can convince those hoarding or selling the gold to sell it to you.
That will be all for today’s post in which we have addressed the question“ How can I buy physical gold?”. I hope you found it helpful, and that you now know how to go about acquiring this shiny metal. Let me know if you have more questions pertaining to this article, and I will respond to them ASAP- drop them in the comments section below.
I wish you well,
Eric, Investor and Team Member at Gold Retired!