Buying Gold Bullion
Have you ever thought of investing in Gold Bullion? It’s something I’ve been considering doing for a while. If this is a new addition to your investment portfolio, you’ll appreciate this handy guide. #buyinggoldbullion
A Guide To Buying Gold Bullion
Featured Image by Brett_Hondow via Pixabay
The price of gold now has vastly increased over the past two decades making it an attractive investment. The price is also set to go up, which is why people are still interested in putting money into buying and selling this precious metal.
There are different ways to buy gold, but the simplest form is as bullion – that is to say gold in it’s physical form.
Gold bullion can be bought in two main forms – as ingots, which is a bar, or as coins.
Coins are more flexible than ingots because they are broken down into smaller units, making them more versatile. For example, you could sell half of your gold by splitting your 20 coins in two and selling ten of them.
On the other hand, with an ingot, it’s harder to sell smaller amounts. However, if you’re thinking of buying and keeping larger amounts of gold, then bars are the way to go.
Start With Gold Coins
Nevertheless, if you are just starting out with buying gold, you may wish to buy some coins before buying whole bars. There are several variants around that you can purchase, such as Chinese Pandas or American Eagles. Some coins may be extra valuable because they are rare, antiquated, or otherwise considered collector’s items. These are known as numismatic coins, and unless you are specifically looking for collectables, you should ignore them.
Instead, you should focus on the coins that offer the best premium, with the hope they’ll rise in value over time so that your investment can pay itself off. One of the cheapest premiums over its spot price is for the one-ounce South African Krugerrand, and this largely in part to it being the most common gold coin in the world. You can also look for gold Sovereigns and the Britannia, which are surprisingly still considered legal tender in the UK!
The Gold Market
Regardless of whether you invest in coins or ingots, you must be aware of all the costs involved. The gold market can be lucrative, but only if you buy and sell wisely. That means buying for less than the market price, and selling above it.
For a long time now, Hong Kong is considered to be the cheapest place to buy coins, where you can buy them for as low as 0.2% above the premium.
However, getting to Hong Kong isn’t cheap nor necessarily easy, so to go there you’d have to be fully committed to buying a substantial amount of bullion. It may be better to buy gold through established dealers, who can then see that the bullion is delivered straight to your home, using couriers.
Make sure you lose as little money as possible when selling your gold too. Depending on the market conditions, you could find yourself being offered up to 5% less than the market price for your gold, so you should be savvy of all the factors involved when it comes to buying and selling your gold so that it remains a profitable venture.
Buying Gold Online
You can also try buying and selling your gold online, through https://www.goldbuyersmelbourne.com.au/, where you’ll be offered a better price than many physical sales channels.
- You can buy the physical bullion and have it stored for you rather than needing to take delivery of it.
- Once you want to sell your gold, you can have it delivered straight from storage.
- This is one way to save money at either end of the sales deals and also decrease risk on your part.
Make sure that you bear in mind the points discussed above. If you plan to buy or sell gold, make sure to only deal with trusted sellers and buyers.
This article is published in partnership with Mediabuzzer.
Have you invested in Gold bullion yet or have you considered doing so? Share your story in the comments below.
