How To Buy Gold Bullion

Why Buy Gold ?

gold bullionDespite recent volatility, gold is generally considered a safe hedge for wealth protection in difficult times.  There are many ways to invest, including certificates, mutual funds, and futures.  But the purchase of tangible, physical gold itself is the most secure.  It’s particularly easy to buy gold bullion coins online.  Silver, though not as valuable, is also a good investment and may show less volatility.

This sort of discussion typically brings to mind the piles of bars in Fort Knox.  But don’t forget pirate treasure.  With coins you certainly get the value of the metal, but also the “numistic” value of a collectable.  We’ll learn more about that soon.

Coins come in much smaller increments than huge bar, down to fractions of an ounce. That makes them much easier to sell as well as to buy.  Most are even legal tender (but spending them for their face value is a very bad idea!).

It’s convenient to buy gold bullion online, and it diversifies your investments.  It’s also a thoroughly enjoyable hobby.  And, yes, they can be a part of your self-directed IRA with all the accompanying tax benefits.

Some Things You Should Know

Gold coins typically have a face value of $1 to $20, but are actually worth $20 to well over $1,000.  Why the big difference?  Of course the price of gold has gone up since they were minted.  But their market value is the combination of the precious-metal value plus a price premium determined by the rarity and condition of the particular coin.  So the market value is based on weight, purity, and some particulars.  You can find coins as light as 1/25 of an ounce or as large as several ounces.

Some are “genuine,” issued by government mints while others are privately issued “rounds.”  Government minting gives a guarantee of weight and purity.  There’s nothing wrong or illicit about rounds.  They have neither monetary face value nor government backing, but can be quite valuable.  You can also group gold coins into historic and modern (contemporary).  The dividing point is 1933, when the United States stopped issuing gold coinage into general circulation.  In fact, the U.S. didn’t mint any gold coins until the early 1980s; these were never intended for circulation and have a high price premium over face value.

Popular “investment” coins include the following.

  • U.S. Gold Eagle
  • U.S. Gold Buffalo
  • South African Krugerrand
  • Canadian Gold Maple Leaf
  • Austrian Philharmonic

Tips – How To Buy Gold Bullion

You really need to pay attention when you buy gold bullion online.

Small differences can make a big difference in value  For example, an 1879 Liberty has a face value of $20 and is just under 1 ounce of pure gold.  At around $1,200 per ounce (early June, 2014) the metal value is 60 times the face value.  In most cases the market value is only a few hundred dollars above that, making it almost as economical as going somewhere to buy gold bars.  But… if it was produced in a very limited run by the New Orleans mint, it’s worth over $20,000.  And the physical difference?  A little letter ‘O’ after the year!   That’s not to scare you, just to remind you to do your homework fact-check any claims.  And note how you just might get lucky with a watchful eye and knowledge of the market.

Many gold investors buy gold bullion bars. When buying a gold bullion bar you need to search or pick a dealer that is well established. There are some gold dealers that have excellent feedback records going way back. So try to pick one that has good reputation and not just who have advertisements for gold bullion for sale. When you buy gold bars, bear in mind what is the purpose of buying it. Some people buy them for their collection and some buy them, hold it for a certain time then when gold prices increase sell it. This second group are real investors. Gold bullion bars are real assets. A gold investment can yield good returns, but only if you are caution and know what you’re doing. Gold bullion bars are a unique form of investment. You must be observant and dedicated to this investment. When buying gold bullion bars you need to know the current price and where to buy it. If you don’t know where to buy it search the internet but be careful.

There are many gold dealers all over the world, some gold dealers who sell different kinds of gold in either bar or coin form. You can see lots of advertising regarding gold bullion for sale in the newspaper, online through the internet and in other stores. Other suppliers of gold have a variety of gold to sell either at wholesale or retail prices. When people hear gold for sale especially when the price is cheap everyone seems interested to buy. But you have to be careful because not all gold bullion is cheap. It’s just a strategy of the gold dealer. Be sure you always purchase from a reputable dealer. Always ask for references and feedback before trying something new. We have listed our top rated gold companies in the resources section. You can fill out the form to request investment kit.

There’s a few more things to check out whenever you buy gold coins online.  First, avoid dealers who offer big discounts, don’t post a physical address and phone number, or only accept one or two forms of  payment.  Those are all hints that something might not be right.  Second, reputable source will be rated by the Better Business Bureau (BBB), where you can go for a quick check.

Buying  Gold Bullion or Coins Online

There’s good reason why gold is considered to be universal currency as no matter what country in the world are from this precious metal considered to be very scarce however if you’re looking to find gold online than it’s important that you consider a few points. First of all understand that when you browse through some catalogs of different online dealers the only thing you’ll ever be able to do is see pictures of gold coins and there is no way you’ll know whether the picture in fact do contain real gold or not. You should always check if the dealer is a reputable gold dealer because this will ensure that no fraudulent gold activity will occur against you. In order to choose a reputable dealer it is important to check if they have been established. So this in turn will allow you to get info on the dealer in question without difficulties. It’s also important to do research on gold because you’ll find that there are many options available in the type of gold you buy. It’s a practical solution to store your gold in a safe place. Another option is to buy gold funds. It’s important that once you do business online that you be careful who you’re doing it with otherwise you might find yourself purchasing gold in a very good price and then only to find you purchased worthless metal.

Gold Backed IRA Rollover

How To Buy Gold Bullion