How To Buy Gold Bullion
Gold prices are at an all-time record high at the moment meaning there has never been a better time to invest in this precious metal. With so much uncertainty in the global financial markets investors, governments and banks have turned their attention to gold. With prices set to continue to rise over the next few years alongside fears of a fresh worldwide recession, now is the time to invest in gold if you have not already done so. Gold is now seen as a safer option over other financial investments such as stocks and shares for the foreseeable future.
So, just how do you go about making an investment in gold? For a serious long term investment, look at buying gold bullion. Our guide below explains what options are available to buy gold bullion.
What is gold bullion?
Gold bullion is available to buy in two different forms. You can either purchase coins or small and large bars and there are advantages and disadvantages to both. Investing in coins can often be a good starting point if you have never bought gold before as they can be bought in smaller amounts than bars. You can then build your collection up as you want without paying out a large amount of money straight away. Gold coins are also more flexible. If you want to sell, you can split your sale into coins rather than larger weighted bars. Small and large bars of gold are a good long-term investment, especially if you want to buy in large quantities rather than continually adding to your collection.
Where to buy gold bullion
If buying gold adds to your portfolio of other investments, you need to find well-established and reputable gold dealers. Large gold dealers can now be found online and allow you to buy across the internet. Other options include local coin shops though these don't always give the best price due to the overheads of running a shop as opposed to an internet dealer. Be cautious of internet auction sites selling gold cheaply as they may not be all gold but a thin coating of gold over another metal such as copper.
The cost of gold
Knowing how gold is bought and sold is helpful when buying for an investment. Gold dealers inevitably make money from the sale of gold by buying it at below market prices and selling on at above market prices. The profit the dealer makes depends on how much you buy and the quality of what you buy. One of the worst deals for gold is vending machines springing up in large shopping centres. If you are looking to create an investment portfolio of gold, it is advisable to stay clear of buying gold from these machines. To get a good basis of gold prices for that current day, check the gold fix. Conducted in London, around five gold dealers fix the market price of gold twice a day. This is then published twice a day in newspapers, across the internet and on teletext in order for you to be able to determine the best deal.
Storing gold
How you want to store your gold and whether you buy gold bars or coins may influence where you buy it. If you wish to buy gold bars you have two options depending on how many you buy. You can either store them in a secure safe at home or buy through a company that offers to store your gold in vaults. Gold coins can sometimes be rare and collectable and therefore you may need to look around for what you want. Hong Kong has a reputation for buying gold coins at cheaper prices than can be found elsewhere. Rather than catch a flight, look for a reputable large dealer that can deliver it to your house. If you choose to store any gold bullion at home, it is worth telling your home insurance company to include it on your policy.
Wherever and whatever form of gold bullion you decide to buy always buy from a reputable and well established gold dealer to ensure you are getting a good investment. With the current economic worldwide downturn and unstable financial markets, buying gold has become more popular and easier than ever.