It is every investor’s dream to at least have the touch and security of owning gold. Most of them may wish to have physical gold instead of owning intangible investments such as EFTs. Investors can get gold bullion at spot price, which is the price of pure gold plus additional costs depending on the seller. Physical gold bars can be sold in case of inflation or economic collapse. You can get gold from online websites such as eBay or on walk-in stores and ATMs. Whichever places you choose, ensure you conduct prior research on prices and authenticity. Some retailers in places such as Vegas and Dubai sell gold at exorbitant prices. Hence you need to be aware of such spots when making your purchase. So let us go through some of the things you need to consider when purchasing physical gold bars.
Understand The Difference Between Bars And Coins
All forms of physical gold have significant financial value. However, you need to understand they do not all have the same quality. From an investment point of view, it would be best to avoid gold coins since they contain less gold content but have attractive designs and historical value. They are also pretty costly because of their numismatic coin value. Additionally, coins sometimes distort an investor’s portfolio. For example, the highly-rated American Eagle Coin only contains 91.7% of gold but is expensive since it is valued as a collector’s piece. Therefore, as an investor, you have to decide whether you want a plain gold bar or a collector’s item; however, gold bars are easy to hold for a more extended period and liquidate.
Purchase Gold In Practicable Sizes
As part of the purchase process, a physical gold bar investor has to consider the ease of liquidating the asset. For example, purchasing ten one-ounce bars instead of 10-ounce bars is a good decision since selling the one-ounce bars will one at a time be easier compared to selling 10-ounce bars. Therefore you need to consider whether the amount of gold you buy can be sold urgently and quickly.
Conversely, most investors save up to buy a sizable amount of gold; therefore, buying one gram gold bars will also not work. Thus ensure you buy workable sizes that can be easily liquidated.
To get the quality and bargain, you have to shop around. Remember, with gold bars; different retailers have different prices and additional expenses such as transportation and handling cost, certificates of authentication. Therefore you need to be careful to avoid making a bad investment by carrying out price comparisons. Also, go through customer reviews, especially if you make your purchase from an online website.
To avoid getting duped, gold investors should go through websites such as a better business bureau to know gold sellers’ reputation in the market. Generally, a genuine gold seller has to disclose the transaction costs and other expenses involved in making a complete gold purchase. If you are importing gold from an abroad seller, you have to watch out for custom clearance fees according to quantity so that your coveted asset is not stuck at the customs office after spending a lot on it.
Look For Pure Gold Only
A quality bar should be made of 99.5% gold. The rest are alloys, either silver or copper, which make smelting easy. When buying gold bars, ensure you buy one that has the following ;
- Name of the manufacturer
- It has a 99.99% stamp on the face
- Exact weight
Therefore when purchasing gold from a mint, you also need to ensure that it is a reputable company. Remember, it is easy to get duped into buying fake gold hence the need to go through the necessary features and the company’s reputation.
Avoid Taking Credit To Buy Gold
The gold market is constantly shifting; therefore, due to such uncertainties, it is best to use your savings to make your investment instead of credit. You may be forced to repay your debt before the price of gold rises. Such circumstances have made people sell their gold at a throw-away price, thus not gaining much from the vast investment.
Whether you are saving up for your retirement or just trying to learn the investment ropes, you will never go wrong with a gold investment. However, the purchase process determines whether you will have made a good or bad investment. For new investors, it is necessary to conduct comprehensive research before making any purchase. Learn the difference between gold bars and coins, owning physical and non-tangible gold, and understanding gold bars’ market prices and value. Most importantly, familiarize yourself with some of the risks that come with this investment, such as security threats so that you can know how to protect your asset once you get a hold of it.