A Guide to Investing in Physical Gold

Investing in gold is an ideal way to become more profitable. The value of this precious mineral keeps going up each year. You can trade in physical gold, which is quite profitable. Examples of physical gold investments include bullion, gold jewelry, gold coins and vaulted gold.

You can convert part of your existing retirement account into gold coins or bars as protections against economic uncertainties. This is what is referred to as a gold rollover. Look for a company with the best gold IRA rollover to have an easy time in this particular trade. If you are new to trading in physical gold, you may doubt the price of gold. This is normal since gold does not have a single price. Rather, we can say that there are multiple gold prices:

• The international spot price
• The LBMA price
• The local price in important markets like India or China
• The selling price of physical gold

The sale price of physical gold is the price of gold once it has been converted into coins or bullion and marketed to retailers. To invest in physical gold, we are interested in the international spot price and the sale price of physical gold. The spot price represents the dollar price of 1 ounce of gold for immediate delivery. You should also look for proper ways to store your gold.

Storing Gold

Investing in physical gold does not end with its acquisition. Just as securities traded in markets must be stored in an investment account, gold must be kept in a suitable space with conservation and security guarantees. In this sense, there are three possibilities:

Storing at Home

If you are one of those who want to minimize the separation levels between you and gold, this is your option. In this case, remember to check the conditions of your home insurance for compensation in case of theft.

Renting a Bank Safe

The second option is a bit safer than the first. However, the costs of renting a bank safe vary greatly depending on the entity and can be exorbitant in some cases. Look for a bank with the best rates to avoid spending more.

Hire a Company Specialized in the Custody of Gold

In addition to selling coins and bullion, there are many gold distributors that offer their customers custody of them. The main advantage is that the custody price is usually lower than bank safes. If you choose this option, you should study the entity well and verify that the company has a good reputation. And remember, always diversify the institutions you work with.…

Read More

Important Precautions to Take when Buying Gold

Since long, gold buying has been considered to be among the safest financial investments. However, one needs to take some precautions and necessary steps to make its purchase not so taxing and as profitable as possible. For instance, the purity of gold must be established before buying the metal, and the reputation of the seller and their return policies need to be considered.

General information

Check the credential of a dealer

There are many sources for buying gold. The best way is to explore various sources before finally buying from the most reliable source offering it at the lowest price. For instance, buying gold from dealers may prove to be the most expensive option, but you get the facility of talking to the subject in person. It is always desirable to check the credential of a dealer with the Better Business Bureau.

Check the feedback provided by other clients of the same dealer

You can find many online dealers selling gold. One way to make out the reputation of the dealer is to check the feedback provided by other clients of the same dealer. It’s not unusual for online dealers to sell small items just to boost their online rating. So, it helps to go through the details of items bought by other customers.

Having an account if purchasing gold

Another important precaution you can take is to use the option of having an account if purchasing gold online. It allows you to hold your funds till you get your consignment of gold, after which the company holding the escrow amount releases it to the dealer who supplied your ordered goods.

Ask for shipping insurance

Another important measure that should not escape your attention is to ask the supplier of gold for shipping insurance to cover the price of the gold in transit. In the unfortunate incident of gold getting lost during transportation, the buyer can expect to be compensated for the entire cost of gold.

Check for latest graded gold coins

It is imperative to have gold coins graded by a reputed grading service. Moreover, the grading should have been done recently. That’s because grading tables frequently change, meaning a coin that was graded many years before may have a different grading in the present.

The purity of the gold

Another important consideration for purchasing gold is its purity, which is measured regarding karats. 24-carat gold is the purest form of gold. The less the karats, the more impurities it may contain. It should also be pointed out here that gold coins are usually less expensive compared to gold bars mainly because of their quality.

Check the buyback policy

When you consider investing in gold coins, do check the buyback policy, especially when buying online, to ensure that the coins can be sent back if they do not look satisfactory. You should also understand that, for deriving maximum benefits from your investment in gold, it should be retained for long. Buying and selling it frequently is not so profitable.…

Read More