How Do You Buy Gold

Tips To Avoid Gold Scams

Even though it is relatively easy to find and buy precious metal, there are some risks to consider. Avoid Craigslist, online dealers offering massive discounts, pawnshops, TV ads, cold callers and any dealer without a brick-and-mortar location, since there is no way of verifying that the dealer actually exists. Dealers that offer free storage or delayed delivery might not be legitimate, and you may never see the gold that you paid for.

Don’t give in to the pressure of late-night telemarketers insisting you call them immediately for a limited-time discounted rate on gold. Take your time to find a reputable dealer.

Don’t give in to the pressure of late-night telemarketers insisting you call them immediately for a limited-time discounted rate on gold. Take your time to find a reputable dealer.

Buying Bullion From The Royal Mint

Buying bullion direct from The Royal Mint couldnt be easier. Create and verify your Royal Mint Invest account in less than 10 minutes, add funds and purchase gold, silver or platinum bullion immediately. All bullion is purchased at real-time prices, and you can choose to have it delivered or store your gold in The Royal Mints Vault. Additionally, for gold stored in , there is a guaranteed buy-back service at a competitive market price. to create your account today and begin buying gold from The Royal Mint within minutes.

How & Where To Buy Gold Bars

Jeff Clark, Senior Analyst, GoldSilver

If youre looking to invest in physical gold at the lowest possible price per ounce, theres no better choice than gold bars. Coins may be more attractive, but all that manufacturing and packaging comes at a price. Gold bars, on the other hand, are the stalwart of the industry, what everyone from average investors to central banks buy and store. In other words, you cant go wrong buying gold barsprovided you follow four tips including where to buy gold bars.

In this gold bar buyers guide, well cover:

• Why buy gold bars?
• How to buy gold bars?
• Where to buy gold bars
• Which gold bars to buy

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Why Investors Like Gold

Gold has a proven track record for returns, liquidity, and low correlations, making it a highly effective diversifier, says Juan Carlos Artigas, director of investment research at the World Gold Council.

These qualities are especially important for investors:

• Returns: Gold has outperformed stocks and bonds over certain stretches, though it doesnt always beat them.
• Liquidity: If youre buying certain kinds of gold-based assets, you can readily convert them to cash.
• Low correlations: Gold often performs differently from stocks and bonds, meaning when they go up, gold may go down or vice versa.

In addition, gold offers other potential advantages:

• Diversification: Because gold is generally not highly correlated to other assets, it can help diversify portfolios, meaning the overall portfolio is less volatile.
• Defensive store of value: Investors often retreat to gold when they perceive threats to the economy, making it a defensive investment.

Those are a few of the major benefits of gold, but the investment like all investments is not without risks and drawbacks.

While gold performs well sometimes, its not always clear when to purchase it. Since gold by itself doesnt produce cash flow, its difficult to determine when its cheap. Thats not the case with stocks, where there are clearer signals based on the companys earnings.

Buy Gold Bars For Less

Before you make a purchase, read about our payment methods for buying gold. You can pay less for gold any day of the year by paying with a wire transfer, Interac e-Transfer, Bill Payment, Cheque, or Money Order. You can even buy gold bars with Bitcoin and other alt-coins. Its simple to buy gold online and easy to save.

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How To Buy Physical Gold

If you decide that investing in physical gold is the right move for you, here are some things to keep in mind.

1. Find a reputable dealer. From working with pushy salespeople to falling victim to scams, navigating the world of buying and selling gold can be sketchy. Sellers can inflate their products value, or use persuasion tactics to create a sense of urgency to buy immediately. Doing some homework ahead of time can help you avoid a bad investment.

You can use the National Futures Associations Background Affiliation Status Information Center to check on a firm or individuals background.

2. Watch out for fees. Gold dealers typically charge more than golds spot price, or the price at which gold trades on a commodities exchange. This premium typically consists of a dealers fee and manufacturing and distribution charges.

3. Find secure storage. People joke about burying gold for a reason: Its valuable, and because it’s a physical commodity, people may try to steal it. Its important to anticipate storing your gold somewhere safe, whether that is a literal safe or a safety deposit box at a bank. Storing gold safely can get expensive. Depending on their size, safety deposit boxes at a bank can run from $30 to a couple hundred dollars a year.

4. Consider purchasing insurance. Insurance is an additional cost of owning physical gold. If you purchase insurance, be sure your policy covers the exact type of asset you have.

Q: How Big Is A Gold Bar

A: Gold bars may look big in pictures, but theyre relatively small in size. Heres a rundown:

• A 1-oz. gold bar from the Perth Mint is about 0.95 inches wide, 1.65 inches long, and 0.08 inches thick.
• A 10-oz. gold bar from the Perth Mint is about 1.46 inches long, 2.28 inches long, and 0.35 inches thick.
• A 1-kilo gold bar from the Perth Mint is about 1.58 inches wide, 3.15 inches long, and 0.71 inches thick.
• The standard gold bar, the type youd find at Fort Knox, is about 7 inches wide, 3.63 inches long, and 1.75 inches thick.

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Gold Mutual Funds And Etfs

Rather than investing in a single company tied to gold, you invest in a basket of gold-related securities through gold mutual funds or ETFs. Gold funds may track the price of gold, include the stocks of multiple gold mines and refineries or provide exposure to gold futures and options.

Top gold mutual funds and ETFs include:

• iShares Gold Trust
• Invesco DB Gold Fund
• Franklin Gold and Precious Metals Fund

Gold Bullion Vs Gold Etfs

Investing in gold bullion is undeniably safe. However, you lose a bit of liquidity by purchasing bullion, since youll physically need to retrieve your gold and sell it to someone in order to get back to cash. If youre looking for safety and liquidity, you may be more interested in a Gold exchange-traded fund .

With a gold ETF, such as the SPDR Gold Shares fund, youll be purchasing shares of a fund that then purchases gold bullion. So, youll never actually see or hold the gold, but the buying and selling process is greatly streamlined.

When deciding between these two options, it comes down to your priorities. Do you want the peace of mind that may come with being able to see and hold your gold? If so, then bullion may be for you. Would you rather be able to move your assets from gold to something else with ease? In that case, you may be more suited to an ETF.

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Bottom Line: Is Gold A Good Investment

Gold has been a commodity for thousands of years. Its value has been relatively stable historically, and it tends to perform better when stocks are down. For these reasons, gold is a popular investment strategy for many people who want to diversify their portfolios. However, most financial advisors dont recommend putting more than 10% of your assets in gold.

If youre looking to invest in gold for retirement, you might consider a gold IRA. Gold IRAs are investment retirement accounts that are backed by gold. They work similarly to a traditional or Roth IRA but hold bullion or coins instead of paper assets. To learn more, research how to find the best gold IRA company.

As a member of the ConsumerAffairs Research Team, Kate Williams, Ph.D. believes everyone deserves easy access to accurate and comprehensive information on products and businesses before they make a purchase. She spends countless hours researching companies and industries before writing buyers guides to make sure consumers have all the information they need to make smart, informed buying decisions.

Invest In Gold Via The Futures Market

An alternative to buying gold stocks or units in an ETF is to speculate on price movements through CFD investing in the futures market. CFD investors try to profit from gold price movements whether up or down.

That means that even if gold prices are falling, CFD investors can still make a profit . However, because CFDs are risky and are complex derivative products, CFDs are better suited to advanced traders.

You can read more about CFDs in our comprehensive guide.

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Why Do People Invest In Gold

Investors have the option to buy and store physical gold. If storing gold does not appeal to you, you may opt to invest in gold through exchange traded funds . The price of the ETF is relative to the spot price of gold.

There are a good number of reasons why investors prefer to buy gold stocks. If you are looking for something liquid, this is a great option. Because of its liquidity, financial experts looking for short term investments get them. They can trade these when circumstances are favorable.

Apart from that, gold stocks also cost less than the actual metal. Buying gold ETF is actually like buying the physical gold. Buying them in shares makes it more affordable. When you buy a gold stock, you only pay a certain percentage of the actual price of an ounce of gold. For instance, an ounce of gold may cost USD1700, whereas a gold share will only cost you USD170.

There is nothing like buying a gold coin or gold bullion bars that you can hold and pass on to your children. But what worries investors if they take this option is storage. Where are you going to store all your gold bars? How safe are they from theft? Will you have enough time to go to your vault and get your gold in case of emergency?

Gold has intrinsic value. People all over the world value gold, and this is not bound to change for thousands of years. And even if this doesn’t convince you, you might want to watch this video where Robert Kiyosaki is explaining why gold will always be a good investment.

Places To Buy Gold Or Silver

The two most common places where you can purchase precious metals are from an online dealer, such as JM Bullion, or a local coin shop. Local coin shops have been around almost as long as money has. They evolved from pawn shop establishments into a more specialized form of resale stores. Local coin shops offer customers a place where they can view their items in person prior to making purchases. Online dealers, on the other hand, are obviously more of a recent development. They serve as a virtual storefront for precious metals companies and enable customers to make their purchases online.

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Pros And Cons Of Buying Locally Vs Online

Most gold bars are bought in one of two places: at a local coin shop, or online.

Believe it or not, youll likely find better pricing online than at a coin shop, even after factoring in shipping costs. Thats because the overhead at a brick-and-mortar store is higher. But thats just part of the difference between them

Heres the pros and cons of buying locally vs. online. First, a local dealer:

Even if you decide to buy online, I recommend checking with a local dealer, because a relationship with them can be helpful if you need to make a quick sale. If you inquire with them, see if theyll negotiate on price.

Here are the pros and cons of buying online:

A good way to start is to compare prices of the same product among a few dealers.

Getting a low premium is good, of course, but price isnt the only consideration see if the dealer is educational in nature , and if they have a buyback policy.

Gold Stocks And Exchange Traded Funds

The primary advantages of stocks and ETFs are that you don’t have to store the metal, and there is potential for earning dividends. Besides individual mining stocks, there are also mutual funds available that invest partially, or exclusively, in mining companies. These can provide diversification into other precious metals, such as platinum, palladium, and silver. You can also purchase options on gold futures contracts at an established strike price.

ETFs hold bullion on your behalf. The symbol for the SPDR Gold Shares ETF is GLD. The ETF trades intraday, like stocks, and benefits from relatively low expense ratios.

Gold stocks don’t necessarily move in concert with bullion prices, because mining companies succeed or fail based on their individual operating performance. You don’t have the security of physical possession of the metal if the companies you buy are unsuccessful.

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Best Place And Way To Purchase Copper & Platinum

As in the case of gold and silver purchases, customers who intend to buy copper and platinum will benefit more from making their purchases online than at a local coin shop. Purchasing copper and platinum from an online vendor entitles them to the same advantages offered on online gold and silver orders such as easier accessibility, better pricing and more privacy. Furthermore, at JM Bullion, the transaction process remains the same regardless of which precious metals the customer chooses to purchase. While we respect the individual preferences of our customers, we would like to warn customers who intend to purchase copper and platinum locally that the availability of these precious metals will be dependent on the specific inventory of each coin shop.

Buying Gold Mining Stocks

If you can’t get your hands directly on any gold, you can always look to gold mining stocks. Keep in mind however, that gold stocks don’t necessarily move in concert with bullion prices, because mining companies succeed or fail based on their individual operating performance and how they deploy their capital and generate profits. You don’t have the security of physical possession of the metal if the companies you buy are unsuccessful.

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How To Buy Gold

Gold can be an attractive investment for those who wish to protect themselves from the volatility paper currency and stocks experience. However, the process of acquiring gold is a bit more opaque than simply heading to an ATM. You need to decide what kind of gold you want to buy, find a reputable gold dealer and make sure youre storing your gold safely.

Read on to learn why you may want to invest in gold in the first place, how to purchase gold and what the different kinds of gold investments can look like.

Buying Stock In Gold Mining Companies

The most direct way of investing in these shares is buying gold-mining companies. This poses as the highest risk yet may reap the highest reward.

Because of this, you need to select the most profitable mining company. Make a thorough analysis on the companies you are putting your money on.

Check their production costs and the production increases. Look at the companys debt, as well as the valuation of the company.

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Where To Buy Gold

As with any investment, knowing the background and legitimacy of the gold dealer you are investing with is of the utmost importance. Established dealers offer gold bars that are produced by recognized manufacturers and refiners. However, investors should expect to pay an assay fee when selling or buying gold bullion through a dealer to ensure the purity and authenticity of the asset. These assay checks determine the legitimacy of the metal, assuring the safety of both parties. With billions of dollars in transaction volume, a sizable buy-and-sell market, high quality gold bullion products and consistently competitive prices, Monex remains a preferred source for buying gold.

Call a Monex Account Representative at 800-997-7859 to discuss how to buy gold today. Our Account Representatives are well-versed in the forms of gold bullion investing, and are eager to help investors begin the process of buying physical gold.Monex account representatives are available between 5:30 a.m. and 4:30 p.m. Pacific time each Monday through Friday and on many weekends.

How Else Can You Invest In Gold

You can also buy shares in gold-related firms like mining companies, although this is a much more adventurous option.

The companies’ prices don’t always track the gold price. If a mining company is badly managed, owns unproductive mines or operates in unstable countries, its price may shrink.

You should diversify across multiple mines and regions, as buying individual stocks makes you vulnerable to instability.

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