Investing In Gold

With a price known to increase at incredible rates, it is not surprising why more people are considering investing in precious metals including gold. Before investing in gold, though, you need to do some research and learn from someone other than the person or entity offering you the metal.

It’s important to choose a reputable dealer selling gold bullion like Gold Buyers Melbourne, to help you make sound investment decisions, especially if you’re not yet familiar with gold or other precious metals. There are three things you can expect when buying gold, and that’s knowing the metal’s cost per ounce, the timely delivery of the gold, and the value of the bullion versus the collector value.

Let’s take a closer look at what to expect when buying gold.

1. Price

Gold PriceImage Source: Unsplash

Because the sovereign governments mint the coins and charge a nominal fabrication fee, gold bullion coins tend to trade at a small premium compared to the actual spot gold price – which tends to be based on a hundred ounces or greater .999 fine gold bard. If you want to invest in gold, it is important to know this.

The bullion coins range from 1/10 all the way up to a troy ounce and trade anywhere from 3 percent to 15 percent over the spot. The coin, its size as well as the number of coins you purchase is where the price will be based.

There are those larger dealers of gold bullion that prefer to sell a troy-ounce gold coin for around 4 to 5 percent more than the spot price. Typically, dealers purchase from gold investors at around 2 to 5 percent less than the selling price.

The South African Krugerrands, American Eagles, and Canadian Maple Leafs are among the most popular gold coins on the market.

It’s important to shop around and talk to several credible dealers to get the best possible price.

2. Delivery

Typically, you will receive your gold for up to 14 days. The seller, if aware of a mint delivery problem at the time of your purchase, should inform you of a possible delay. Rather than trying to avoid storing your coins at dealers and opt, instead, for storage at an authorized and independent depositary, especially if you’re investing in large quantities of gold.

If you receive your gold at the time of purchasing it, be careful as your transport it. Put your coins securely in a case or in your pocket. Never carry them in your hand for people to see. What’s more, be very aware of your surroundings when you leave the gold dealer’s building. Take note of suspicious characters and rather go back inside if you are uncomfortable.

3. Bullion Versus Collector Coins

Bullion Versus Collector CoinsImage Source: Unsplash

It’s important to know the difference between rare coins that carry a collector premium based on their historical supply and the current market demand, and bullion coins whose value tends to fluctuate depending on the current price of gold or other precious metals.

Some gold coins may be available in circulated conditions for a relatively fair premium over their gold content. But, the very same coins in superior condition could have a much higher value. Keep in mind that the numismatic premium can reach thousands above the coin’s melt value.

Keep these points in mind the next time you buy gold.

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Infographic describing the 8 Best Ways to Invest in Gold

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