7 useful tips to invest in and buy gold bullion

It is said that when the world’s economies shake, gold sustains. The world has come a long way, yet gold holds the same allure today as always. Gold’s luster, malleability, and rarity made it one of the most precious metals. Over the years, investors have sought rare gold coins, futures, and mutual funds. However, gold bullion has remained one of the most reliable investments as long as one knows the right ways to do so.

7 useful tips to invest in and buy gold bullion

  • The right time to buy gold bullion
    There is no “right” time to invest in gold bullion. According to most experts, the right time to invest in gold is subjective and differs from investor to investor. No investor impulsively invests in gold bullion as it is not exactly a short-term investment. The right time is when an investor thinks it is right after doing due diligence. It is essential to consider how much you are willing to invest. Also, it is important to know the current gold spot price. Additionally, you must be aware of whether you have researched the bullion market well before making a bullion investment.
  • Go for North American coins
    Most experts recommend buying gold bullion from American Eagle or Canadian Maple Leaf, as they are the easiest to sell and buy. If you are out of the country, the 24-karat Canadian Maple Leaf is preferable. Within the country, however, most veteran investors prefer the 22-karat American Eagle. This is because the U.S. Mint guarantees the purity and content of Eagle’s gold bullion. Moreover, American Eagle gold coins can be invested in individual retirement accounts (IRAs) as well. Besides that, American Buffalo coins, introduced by the U.S. Mint, compete with the purer Canadian Maple Leaf. But these are more expensive than American Eagle.
  • Right bullion dealer
    Before making an investment and buying gold bullion from a dealer, it is essential to perform in-depth research on the dealer company. Ensure that that business has a reputed and respected brand name. Reliable reviews and information about the history of the company must be available easily. Resources such as the Better Business Bureau can help understand the reputation of bullion-dealing companies.
  • Compare prices
    To get the best returns on bullion investment, make sure to compare prices. Although the U.S Mint doesn’t directly sell American Eagle gold coins, they have a tool on their website to locate dealers. This can be used to compare prices, specifically for American Eagle coins. Since gold coins sell at a premium price, which is above the spot price of gold, it is easier to compare prices from different dealers. If you are looking for spot prices of gold, you can check websites that specialize in metal exchange, too. Experts recommend that it is best to go for the lowest premium price. As far as possible, avoid buying bullion from websites such as eBay as you are highly likely to get trapped in a bidding war, which could lead to you paying more than its worth. 
  • Know the pricing
    Similar to any other investment options, the price of gold bullion also fluctuates frequently. To understand the price of investing in gold bullion, watch out for spot prices of gold for a while. Also, research the long-term history of gold investments, especially about how gold prices have shifted over the years within the market. Additionally, be aware that there might be a fee added to some of the bullion purchases, specifically when fractional gold pieces, commemorative coins, and collectible coins are involved.
  • Avoid rare collectibles
    Rare coins may interest you when you are thinking about investing in gold bullion. But rare and collectible coins require higher levels of expertise and diligence when purchased. This is although two rare coins may look similar, they might have different grades. These differences often lead to the addition of thousands of dollars. As a result, it is recommended to hire professional graders to obtain an authenticity certificate when buying rare and collectible coins. However, this can be a lot of hassle. Also, availing such services will add to the overall cost of the investment.
  • Secure storage
    Once the gold bullion is purchased, it needs to be stored in a secure place. Home storage such as locked drawers and floor safes that are password or key-protected are safe options. The locker services of a local bank can also be availed, albeit at a price.
Disclaimer:
The information available on this website is a compilation of research, available data, expert advice, and statistics. However, the information in the articles may vary depending on what specific individuals or financial institutions will have to offer. The information on the website may not remain relevant due to changing financial scenarios; and so, we would like to inform readers that we are not accountable for varying opinions or inaccuracies. The ideas and suggestions covered on the website are solely those of the website teams, and it is recommended that advice from a financial professional be considered before making any decisions.
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