Gold Bullion & Gold Coin Dealers Usa
You can easily invest in gold bullion, coins and bars from local coin and gold dealers in the USA. Although these shops are perfectly trustworthy and sell high quality gold, silver, platinum and palladium a lot of the time they carry smaller inventories and can charge higher premiums than online gold dealers. This is mostly due to overheads, higher operating costs, rent etc so bare this in mind when buying gold in the USA from a local dealer.
We have listed a number of reputable local gold dealers and brokers on the Buy Gold Online website if you decide to take this route. Click on any of the states on the U.S. map at the top of the page to find a local gold dealer in your area.
Investing In Gold Mutual Funds And Etfs
You don’t invest directly in gold itself when you invest in gold funds. The most common means of buying gold directly is in bullion gold coin. The most common way to invest in gold as an investment security is through an exchange-traded fund , such as the SPDR Gold Shares .
Mutual funds invest little to no assets in physical gold. They often hold the stocks of mining companies.
Buying Gold Futures Options
More experienced investors who dont want to risk a lot of capital might consider options on gold futures or options on a gold ETF. These contracts represent the rightbut not the obligationto buy or sell an asset at a specific price for a certain amount of time. Options can be used whether you think the price of gold is going up or going down. If you guess wrong, the maximum risk associated with buying options is the premium you paid to enter the contract.
Available in the U.S. through the Chicago Mercantile Exchange, put and call options on gold futures can be bought and sold through a futures broker. Options on SPDR Gold Shares ETF are also available to investors and can be traded in a standard brokerage account that has received approval for options trading. Meanwhile, some traders buy and sell gold futures contractswhich trade on CME under the symbol GCto speculate on short-term moves higher or lower in the yellow metal.
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Gold Investments In The Form Of Gold Mining Stocks
A way to invest in a gold mine is to invest in mining stocks. You are basically backing the mining company and the prices of gold mining stocks follow the gold industry and the performance of the company. Gold mining has its risks though, remember its a dangerous business and this factors into the investment.
Know The Difference Between Bars And Coins
While all forms of pure gold have significant monetary value, not all investment-quality gold is equal. From an investment perspective, investors wanting to add the physical product that tracks the price of gold may wish to avoid gold coins. These coins often feature attractive designs, have historic value, and contain a lower quantity of gold, but still, cost more due to their numismatic value.
In addition to costing more, gold coins sometimes skew the value of an investors portfolio. For example, the highly regarded American 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 collectors piece. Some investors may want collector’s items, while others may want plain gold bars, which typically are the easiest to hold long term and convert to cash.
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How To Buy And Keep Gold Coins
If you decide to buy gold coins, get it from a reputable dealer or financial institution. We wouldnt buy gold coins on Craigslist, but thats just us.
If you buy gold coins from individuals or from anyone else youre not sure of, have the gold coins authenticity verified first. You dont want a collection of gold-plated lead.
U.S. gold coins come in one, one-half, one-quarter, and one-tenth ounce denominations. You pay a premium over the price per ounce when you buy gold coins, which is how the dealer makes a profit.
You may pay a higher premium if you buy gold coins less than one ounce each. You should generally buy bullion coins, such as the American Gold Eagle, Canadian Gold Maple Leaf, or South African Krugerrand.
Collectors coins, called numismatic coins, are a different game than bullion gold coins. They can sell at a very high premium, and their prices are dependent on more factors.
Unless you are very knowledgeable about collectors coins, stick with bullion coins.
Once you have the coins, you may be tempted to run the coins through your hands, like Ebenezer Scrooge.
But of course you wont you should leave coins in their cases, away from scratches and fingerprints.
Dont even think of hiding gold in your house, unless you have a safe. Thieves know where to look, or they can find it with a metal detector.
For very little money, you can rent a safe at a bank for your gold and other valuables.
Gold As A Hedge Strategy
Investors have had concerns about the devaluation of the U.S. dollar. The federal government pumps more money into the economy to stimulate it due to large deficits, but the more currency that is in circulation, the lower its value. More investors put money in gold as a perceived safer alternative when concerns over dollar value increase.
Hedging is the term used for mitigating the risk of losing money. A hedging strategy is a plan an investor has to lessen the impact of losses.
As the demand for gold increases, so does its value, which in turn raises its price. Gold is thought to be a safe haven for related reasons. Investors feel safer with real assets in times of economic uncertainty. Gold can be used as a hedge against inflation or hard economic times.
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Advantages To Buy Gold Coins
Gold and other hard metals have always been a time-honored part of traditional investment plans. Heres why:
- Gold tends to go up when other investments decline, providing a stabilizing effect for your portfolio.
- Gold is a bulwark against inflation.
- You dont have to pay capital gains tax until you sell.
- Nobody has to know you have it if that matters to you.
- In worst-case financial scenarios, such as massive currency devaluation, you can use gold and silver to buy and sell. That may sound crazy but it has happened in other countries.
Gold As An Investment
As a means of diversifying your portfolio, gold investment can be beneficial. Gold is a perfect choice as an investment. Gold tends to hold its value very well because it is both a finite resource and relatively rare. Besides, the gold price isnt directly correlated with many other asset classes, meaning its price tends to move differently than that of equities, bonds, real estate, or other types of assets.
You could consider it to be insurance for your portfolio. An allocation of 10-15% of gold in your investment portfolio will help provide protection and diminish your overall returns volatility. This weighting doesnt have to be in physical gold, though some physical gold provides other protection types. There are several other ways you can get the diversification benefits of gold.
Please look at our gold investment training and learn the different methods to invest in precious metals. This brings us to the key question that will be answered in this article, and that is, how can you invest in gold?
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But Gold Can Indeed Be A Good Hedge In A Crisis
Gold can soar in value during hard times, when investors are fearful and uncertain and seek safety. Just look at the diverging paths that stocks and gold took in 2020 amid the outbreak of COVID-19.
When the pandemic-fueled selloff in stocks finally bottomed out on March 23, the S& P 500 was sitting on a year-to-date loss of more than 30%. Gold prices, however, held firm. By March 23, they were up about 1% for the year-to-date.
And then the real fun began. Gold went on a tear over the next four-plus months, rallying 36% through Aug. 6 when it hit an all-time high of $2,067.20 an ounce.
As noted above, the 21st century has given gold several opportunities to shine. The turmoil that followed the Sept. 11, 2001, terrorist attacks and continuing through the 2008-09 economic meltdown was bullish for gold investors.
It’s not unusual to see golds price rise with bad news and drop with good news .
Future Contracts For Gold Investing
When you buy a future contract you are looking to buy gold that will be delivered at a later date. Sometimes this is from a gold company sometimes it is directly from the mine. The gold is bought at a set price and delivered later. It does have its downsides as you do have to trust the company to deliver on your gold investment.
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Investing In Gold Coins In Other Ways
You can even buy coins with your Individual Retirement Arrangement . You wont be able to take these coins home.
Your IRA administrator will keep them in a vault for you. Coins must meet standards of purity to qualify as IRA investments.
You can always invest in gold without actually bringing home any gold coins.
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Advantages Of Gold Securities
Along with some of the general benefits of gold ownership, securities offer:
- Liquidity. Trading as they do on major exchanges, gold securities are obviously easier to buy and sell than bullion. No storage costs, either aside from any management or account fees your broker or fund manager might charge.
- Compounded returns. While dividends offered by miners are typically average at best, they are greater than no dividends at all, which is what you get from physical gold. And there is also the possibility of appreciation in the share price.
- Low initial investment. The most cost-efficient way to invest in general, mutual funds and ETFs let you in on the game at a far lower cost. With the spot price of an ounce of gold around $2,000, $180 for a share of the SPDR Gold Shares ETF equal to 1/10th of an ounce of gold is, well, spot on.
Gold Funds Beat Physical Gold
As attractive as coins and bullion may be, funds are the easiest way for retail investors to get exposure to gold. They’re becoming increasingly popular too. Gold ETFs enjoyed record inflows of $47.9 billion in 2020 almost double the previous record set in 2016. In terms of tonnage, gold ETF demand rose 120% over 2019. Demand for bars and coins grew just 3% year-over-year.
No wonder: It’s much easier to get gold exposure by holding a gold fund electronically in a brokerage account rather than receiving, storing and insuring the physical metal.
The SPDR Gold Shares , the worlds largest gold-backed exchange-traded fund, has about $61.3 billion in assets. The ETF tracks the price of gold bullion. If you choose to invest this way, Kiplinger prefers the lower-cost iShares Gold Trust , which has annual expenses of 0.25%, compared with 0.40% for GLD.
You also can invest in numerous mutual funds and ETFs that invest in the stocks of gold-mining companies.
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You Can Buy Gold But Should You
Despite its age-old allure, gold isnt always the strong investment that movies and TV shows may have led you to believe.
I advise all of my clients to stay away from investing in gold, says Smith. Gold is a speculative investment and has a very poor long-term performance record. For individuals that still move forward on purchasing gold, buying gold in the form of a tradable security is a much easier and cheaper way of incorporating it into a portfolio.
I advise all of my clients to stay away from investing in gold. Gold is a speculative investment and has a very poor long-term performance record.
But while hes clear that he doesnt think investing in gold is a good idea, Smith does acknowledge the draw the physical metal can have. Theres something comforting about being able to touch what you own. You dont get that if you own a part of Johnson & Johnson.
Greg Young, a CFP and founder of Ahead Full Wealth Management in North Kingstown, Rhode Island, agrees. People like gold because its so easy to understand, he says. But anytime someone insists on a specific asset, there is an underlying emotional rationale.
About the author:Alana Benson is an investing writer who covers socially responsible and ESG investing, financial advice and beginner investing topics. Her work has appeared in The New York Times, The Washington Post, MSN, Yahoo Finance, MarketWatch and others.Read more
Want To Buy Gold Heres What You Should Know
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What do Scrooge McDuck and King Midas have in common? Hint: Its not a well-diversified portfolio. While owning gold sounds cool, and may even be considered responsible during a stock market downturn, investing in gold comes with some unique challenges and doesnt always pan out the way you might expect.
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The Bottom Line On Gold Investment
As you can see, there are numerous ways to make gold investments. The best is still buying physical gold, whether you hold it yourself or in an allocated account. Even if you plan on diversifying your gold investment, you should start with physical gold and build a solid foundation before branching out into other gold investment vehicles. Planning for an approaching retirement can be a daunting task. Making investment decisions that will affect your lifestyle and your comfort during retirement is often difficult. This difficulty becomes particularly acute for investors approaching retirement age and is making the transition from wealth acquisition strategies to wealth preservation strategies. At this stage, investors seek to avoid the volatility of uncertain markets and find safe, stable investment assets. Gold has been that type of haven for centuries. Known for its ability to weather the storms that often wreak havoc in other markets, gold offers stability in these chaotic times. Investing in precious metals is an excellent addition to a retirement plan portfolio. Investing in gold through an Individual Retirement Account is a popular method for adding gold to a portfolio. Using a gold IRA avoids the risky nature of storing physical gold and preserves the tax advantages of having an IRA. The process of implementing a gold investing strategy using a gold IRA is pretty straightforward, but there are a few terms an investor should know.
Investing In Precious Metals Through A Reputable Dealer
The last option is you can go with a reputable retail dealer, and that’s where the United States Gold Bureau that’s really where we come in. We deal directly with the public, we buy at wholesale prices, with an enormous selection of inventory, we are in the business of precious metals, we are constantly buying, selling and trading metals. I think the biggest thing you want to consider when deciding who you want to work with is:
1. is the company reputable?
2. do they have the inventory selection that you want?
3. Are there prices competitive and fair?
4. Do they deliver good service and do the things they say they are going to do?
It’s really about getting the maximum value out of the relationship. One of the nice things about working with our company is you get the opportunity to work with an individual account manager that is going to work with you from beginning to end, and really walk you through the process, help you get educated and help you get to a place where you are comfortable with the buying decisions that you are making.
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