Many people come up with questions on how to invest in gold. Gold coins are probably one of the easiest to invest in because they are backed by a government organization. The national treasury is the one responsible for printing these gold coins. Because of this, it is easier for people to use these coins than gold bars or even gold stock. Coins like American Buffalo, American Eagle, and St. Gauden’s are among the more popular coins on the market.
The problem with gold bars is that they are a more substantial investment. This means that for those who are entering in to the market for the very first time, they will have to invest a larger sum of money. A gold bar is one ounce. While gold coins are a lot less in weight, they are easier to distribute and resell. When people are testing the waters for the very first time, it may make them feel uncomfortable to put a large sum of their money into a gold bar without any experience.
When you buy coins it is important to note that you should not be paying high premiums for them. Paying anything over 10% of the current gold market value is unreasonable and should be avoided. When gold coins are first fresh off the national mint, it is typically sold at around 4% above the market price. The retailers who sell it to you typically increase the price anywhere between 1-3% to make a profit. At best, you should be paying for a gold coin anywhere between 5-7% more than what is being sold on the market of that particular day. The lower the premium number is typically better for you when you are considering to buy gold.
There are many options to choose from and online investing in gold coins is a readily available option that many investors tend to take. It greatly provides simplicity for those who do not like ordering via phone or mail order. It is always recommended that when you are buying gold coins to make sure that the company selling them to you is legit. Checking out online reviews can greatly help ease the gold buying process and make sure that you do not get scammed during this experience. There are tons of companies out there and if you feel like your gut is giving you a funny feeling about the company you are about to buy gold in, it is best that you simply move on without looking back.
Storage can sometimes be a concerned, however there should be no need to worry. You can safely put your gold in a bank safety deposit box or in a safe at your home. You can buy authentic gold at your local pawn shops or jewelers as well. Companies like kitco.com will allow you to store your gold with them. You can also trade with these companies when ever you find that you need to sell your gold or if there is a good price drop in other gold pieces as well.