The world is in a state of flux – developing nations’ economies are struggling, many nations are in conflict, the BRIC nations are changing the world order. It is a situation full of change and in this change, the only asset-class liquid investment which is both safe and appreciating, is gold. Though investors are flocking to buy gold, the first question which plagues them is “how do I buy gold?” Here is a guide.
What to consider before buying gold
Gold bullion coins versus gold bullion bars Do you want to buy gold bullion coins (ready-made gold coins) or gold bullion bars? Many dealers like jewelry shops and gold dealers sell gold coins while only a few deal in bars. If you want to buy gold bars, you have to locate the right dealer. The investment amount The second thing to consider is the investment amount. A small investment is not impacted by a small price variation. A large investment is impacted even by slight price variations. Figure out the price and compare dealers before you buy.
Where to buy gold?
Local coin shops If you want to invest in gold coins, the local coin shop is the place to go. You can meet the dealer, chat him up and physically examine the coins. The disadvantage is the price – local shops sell gold at a high price. Gold bullion dealers They buy in bulk from many sources and offer low prices to customers. They also supply gold to the local shops. If you are planning to make a large investment in gold, visit a gold bullion dealer. Just search for them on the Internet, compare a few dealers, and buy from the most reputed dealer. Gold bullion mints They make coins and bars and the gold you get from them is new and just crafted into coins and bars. Mints are government institutions and sell gold coins and bars to all types of investors, so long they come through an authorised dealer. Buy from a mint if you are making a large investment. The Internet You can use the Internet to buy gold. Look for shops and dealers, talk to them and choose your preferred retailer. However, buying physical gold is a physical thing which needs one-on-one interaction in the seller’s facility. So, make sure to choose a shop or a dealer who is nearby or one which you can visit without inconvenience. Gold auctions Finally, you can also buy gold coins or bars at gold auctions. You will have to outbid other buyers to get what you want, though. The advantage of buying at auctions is that you may buy some rare stuff which has the potential to appreciate much faster than conventional gold coins.