Buying gold is one of the best things that you can do for your financial future. When you are first presented with the idea of investing in precious metals, however, you are likely going to be left confused about how to get started.
The truth is that buying gold bullion is very easy to do, and you will avoid any scams or fraud if you practice due diligence before making any purchases, whether it is online of offline. The complete outline below will detail exactly how to buy gold.
Places to Buy Gold
There are two different primary ways to own your own gold. The most popular and convenient way to buy gold is over the internet. Online gold dealers offer comprehensive catalogs of items to choose from, which can be purchased by you the customer.
After you pay for the items, they will be physically mailed to you. Buying gold on the internet is not like buying stocks where you have virtual ownership in an item. With gold websites, you will have the physical metal itself shipped to you.
The second way to buy gold is in a brick and mortar retail store. Coin stores carry bullion and numismatic items alike that customers can purchase in person. The chances are that there are a number of local gold dealers near you. To find a list of local businesses that sell physical gold, either consult your phone book or simply search online for gold coin stores in your area.
Best Way to Buy Gold
The best way to buy gold will depend on what you are planning to buy, how much money you have to spend, and what will be the most convenient. For almost everyone, buying gold online is going to be the clear cut best way to buy gold.
The prices at online gold sites are typically significantly better than their brick and mortar counterparts. The drawback to buying your gold online vs. at an actual brick and mortar store is that you can not actually see, feel, and hold the items before you buy them.
For gold bullion buyers, ordering on the internet makes perfect sense. This is because bullion is bullion. You do not need to worry about the condition of gold if you are buying bars, rounds, or even generic uncirculated coins.
The only time that condition is exceptionally important when buying gold is if you are shopping for a highly collectible item. Even in this case, however, any credible gold dealer will specify the exact condition of any item before they sell it.
The reasons that buying gold online makes the most sense are very simple. It will save you money, you will have the most items to choose from, and it could not possible be any easier.
When buying your gold online, though, make sure that you are buying from a credible company. For information on which sites to buy from, continue reading.
How to Buy Gold Online
Buying gold online is a very straightforward process. All that you will need is a computer, money, and an address for delivery. There are many different places to buy from, many different ways to order, and many different items to buy.
1.) The first step is to decide what type of gold you would like to buy. There are two different forms of gold that are most commonly ordered. The first is known as gold bullion, which is nothing more than pure gold. The value of bullion is comprised by the actual gold content involved, and nothing else.
The other type of item that you can buy are gold coins. Gold coins are more collectible and have more diversity. Many online gold dealers sell both of these items. For more information on different types of gold, view our sections on gold coins and gold bullion.
2.) The second step in buying gold online is finding the website that you are going to order from. There are a number of elements that any smart gold buyer will take into consideration before they fork over their money for an order.
An online gold dealer should always…
-Have fair prices
Fair prices will always be relative to the items that you are buying. A fair price for a piece of gold is not denoted by the price itself, but instead by the price in comparison to the fair market value. For example, most gold bullion will have a small mark up over spot price. As a general guideline, you should never pay more than $50 over spot per ounce for gold bullion. Smaller quantities of gold will have markups that are smaller in direct comparison, but larger in terms of percentage. To illustrate, a gram of gold bullion will cost $10-$20 over spot.
Gold coins are going to cost significantly more over spot than bullion. This is due to the fact that they are more scarce and rare and have a higher secondary market demand. Expect to pay upwards of $25 for even the smallest size gold coins. For 1 oz. basic uncirculated coins, such as the American Eagle, the price will be closer to $50-$100 over spot. The more rare that a coin is, the higher that the premium will be. For the most common of coins, you will not be forced to pay an arm and a leg. If prices fit into this general range, you are getting a good deal.
-Offer several safe payment methods
As with any purchase online, you should always be vigilant when making a payment. The payment methods available for gold bullion websites will most often include credit and debit cards, checks by mail, and wire or bank transfers. The size of your purchase will play a role into which method of payment is most ideal.
In order to cut down on potential fees and to ensure the best deal possible, large purchases are most effectively placed with bank or wire transfers. For many people, however, a credit or debit card will be the best way to pay for gold. No matter what you do, do not pay with a money transfer (such as Western Union) or anything else that would leave you in the cold should the transaction go wrong. If you make your payment with any method that will give you protection against a failed transaction, you will not have to worry about your money ever being at risk.
-Process shipments effectively
With expensive and valuable items such as gold, insured and safe shipping is of the utmost importance. A sound gold website will mail your items out with extreme protection so as to ensure that your items are delivered as promised.
Check to see what types of delivery options are available. If you are living in the United States or Canada and are buying from a company that is located in the United States, you will have little to worry about. Ask whether your shipment will be insured and whether it will be tracked. A tracked order will allow you to follow your items every step of the way, and an insured shipment will protect you in the potential case of any items getting lost in the mail.
-Have a positive reputation
A positive reputation will say a lot about the credibility of any business. With gold, the most reputable dealers will also receive the most steady and repeat business. A great gold dealer will have positive reviews, a sound Better Business Bureau log, and a high customer satisfaction rate.
Determining whether a particular gold dealer is reputable can be the biggest challenge. In order to help aid buyers, we have listed the best overall place to buy your gold from in the section below.
Where to Buy Gold Online
You now know what to look for in a legitimate gold website, so now you simply have to find one to give your business. Our number one choice for buying gold online, without a doubt, is JM Bullion. The business originally started off as a small online dealer, but they have grown to the point of servicing hundreds of buyers on a daily basis for several years now.
This company meets all of the criteria that was outline above, in terms of fair prices, shipping and payment methods, and general reputability. There is a comprehensive selection of items to choose from at this website, including bullion bars, rounds, and coins of all varieties. Collectors and investors both use JM Bullion when they buy gold online.
This company has an exceptionally high customer satisfaction rate and is the most well-renowned gold website in the world. JM deals exclusively in physical gold and is located in the United States.
Finding a great gold dealer is not difficult if you know what to look for. Whether or not you take our suggestion of ordering from APMEX, we hope that you find your online gold buying experience to be safe, enjoyable, and profitable.