How and Where to Buy Gold Online
With the turbulent times in the economy, stock market, banking system, etc, it seems like the world is ending. It’s not, but things are going to get worse before things get any better. When tough times hit the economy, people buy and invest in gold. Why? Because gold holds it value and is not subject to major losses. It is a simple commodity and attainable by anyone.
But there are many ways to invest in gold. Let’s take a look at the common ways to own or invest in gold, along with some general advice.
By far, the best way to invest in real gold is gold bullion. It is the most liquid and guaranteed form of gold. When dealing in professional gold markets, gold bullion is bought and sold in the form of Good Delivery bars. Good Delivery bars are certified, at least 99.5% pure gold, and are very carefully tracked when moved to ensure that they are never tampered with. This ensures that if and when you are ready to sell them, you will never have a hard time finding a buyer.
Most novice gold bullion investors will need at least $10,000 to get started if they do not know what they are doing. Commission fees are high, and storing the gold somewhere safe can be an issue. But there is a little known secret for the rest of us. The website is called BullionVault, and it eliminates most of the issues associated with buying gold bullion. This website allows smaller investors to buy gold at the prices big buyers pay. Low commission fees, storage is handled for you, friendly customer service, and the website is really simple to use.
Gold stocks usually refer to gold mining companies. You’re not actually buying the gold, but rather in the company that mines it. The value of the stock will depend on the demand for gold, how fast the company is growing, and many other factors. The risk is when the gold runs out at the mine, the stock will likely crash. No mining company is able to predict the amount of gold it will mine and for how long, so there is some significant risk involved.
Tip: Like any stock investment, it pays to do your due diligence. Do not blindly invest in gold stocks because the price of gold is up. Research the companies thoroughly, keep an eye on their performance, and after enough time make your decision.
Gold jewelry is the easiest way to invest gold, but also the worst. Unless you are an avid jewelry collector or expert, there is no way to tell what you are paying for. Gold jewelry will almost always lose value as soon as you buy it (the same thing applies to driving a new car off the lot.) Resale value for gold jewelry will always be less than what you paid. The reason is because when you buy gold jewelry, at a jewelry store for example, you are paying a premium for the store’s overhead, marketing costs, and the labor for making the jewelry. The price of the jewelry is significantly more than what the actual gold is worth.
Gold jewelry is not very liquid either. If you want to off-load jewelry, you have to go through second-hand markets like eBay or classified sites, and even then it can be hard to sell.
Tip: Never buy gold jewelry as a gold investment. As a matter of fact, when gold prices go up, you’re better off selling the jewelry you don’t want for fast cash. You can sell broken and junk gold jewelry by clicking here.
Gold coins can also be a good investment in gold, but you have to be careful where you buy them from. Collectible gold coins are a good investment because their quality and content are guaranteed. There are many kinds of gold coins available, and they seem to be issuing new ones all of the time. You can “strike gold,” so to speak, if you’re holding onto a coin that suddenly becomes a hot collectors item.
Gold coins are easier to sell than jewelry, because there are is a market for them. Some coins will increase in value over time, while others will hold their value if they are not at all scarce.
Tip: Research the gold coin collector niche before making a purchase. It is always wise to invest in gold coins when the price of gold is low. When tough times hit, the demand for gold coins can skyrocket. In fact, demand can go so high that the US Mint stops selling gold coins because they cannot produce enough. There are many online sources for buying gold coins, so look and ask around. Unfortunately, we currently do not have a recommended source for buying gold coins.
Posted in Gold Investing