How to Buy Gold Coins and Bullion
BUYING GOLD VIA COINS AND BULLION
So, you’ve decided to invest in gold. Of course, there are many forms of gold in which to place your money. You may decide to buy Exchange Traded Funds, or perhaps shares of gold mining companies, or then a gain gold certificates or digital gold. But if you want to be able to have an item of gold that will give you aesthetic pleasure as well as the investment value of the gold content itself, then gold coins or bullion is a great way to invest.
Here we look at how to invest in gold, and buy either gold coins or gold bullion.
Where can Gold be bought?
There are many places from where gold can be bought, from the high street to on line brokers.
With the gold price so high, there are many shops opening offering to buy and sell gold. Also, auction houses can be a solid source of gold, in coins and jewellery form. Of course, gold cons are best bought from a specialist dealer.
The important thing to remember is to always trade with a reputable company or individual. If its your first time as a buyer, why not get I touch with your local coin collectors’ club, where veteran numismatists will be happy to help you find the best dealer for your needs. Don’t forget, coin dealers specialise, so you may be building relationships with two or three dealers for your coin buying needs.
Wherever you buy your gold, make sure you invest your time first in finding the best outlet you can.
How much should you spend?
This really depends upon what you want to buy, and your investment objectives. Perhaps a better question is ‘How do I know how much to spend?’
Again, research is key. Get down to the local library, and search on the internet. If there is a certain item you wish to buy, ensure you know what it is, and how much it is worth before you start to negotiate a price.
Remember that if you are investing in coins, then there will be a premium on the price of the pure metal content, and this is most usually more than the metal content itself. Coins are bought and sold more for there history and ‘back story’, quality and rarity, than for the gold content.
Can I negotiate a better price?
The answer here depends what you are buying and from whom.
If you are buying gold bullion in the form of bars, the simple answer is no. The price will be fixed, and that price will be a little above the value of the weight of gold, particularly if you are buying from a reputable dealer or on line agent (for example the Vancouver Bullion and Currency Exchange, www.vbce.ca).
However, if you are purchasing coins from a dealer, then you should always haggle the price. Remember, by the time you are at this stage, you know what it is you want to buy, and you will also know the value of the coin.
What about buying on line?
Again the rule here is to approach in the same way that you would do if buying on the high street.
One of the most common on line sellers of gold coins is the auction site, eBay. However, you must be wary of the seller. There are many counterfeiters of coins, and there are plenty of stories of buyers who have purchased a coin that has been forged. On-line auctions are definitely a place to carry the motto caveat emptor: buyer beware.
What about buying gold bullion coins or bars?
So far, we’ve looked mainly at buying gold coins that have a value other than the gold itself. If your main objective is to invest for the gold content, then you will probably want to buy gold in the form of bullion coins or bars.
Most mints around the world produce gold coins. Some of the best examples are to be found from the Royal Perth Mint and the US Mint. In many instances, coins can be bought direct, or from accredited dealers. Being accredited by the Mint for whom it is acting, you can be sure of an accredited dealer’s trustworthiness.
Gold bars for investment purposes are generally held to be London Good Delivery Bars, and are maintained in central bank vaults. At a weight of 400 ounces, they are often priced out of the range of small individual traders.
If you want to buy bullion bars, then BullionVault.com offers an efficient service with safe custody and easy purchase and sale mechanisms.
Whatever your preferred purchase, you should always conduct thorough research before proceeding. Gold offers you a chance to enhance the return on your savings, but you should be clear from the outset what your investment objectives are. Knowing why you want to invest, and then understanding the investment you are to make will take a little time, but pay dividends.