Finding an outlet in which to buy gold is probably the easiest step in the entire process of investing in gold. The question you need to be asking yourself is not so much where to buy gold, but what type of gold you want to buy. Different types of gold are more suited for different types of investing or collecting.
You can purchase gold literally anywhere. Any jewelry store will sell gold jewelry, as will pawn shops or retail outlets. If you want to purchase coins then you can look for a gold dealer or purchase directly through the mint that produces the coins. Again, the biggest question is what you plan to use the gold for.
If you want to collect gold as a hobby, then you would probably be more interested in either jewelry or coins. Coin collecting and gold collecting overlap in many ways, but the fundamentals are much different. If you want to buy gold as an investment opportunity however, you are going to need to do a lot more than pick out a pretty gold necklace.
The easiest way to invest in gold is to buy gold online., Through online vendors and dealers, you can find a much wider selection and usually better prices on the gold. When you buy gold, you are never going to pay the spot price, or the quoted market price for that day. There is always going to be a premium, which is a markup that allows the seller to make a small profit. You never want to pay more than 10 percent for the premium whether you buy gold online or at a physical store. The higher the premium, the more time it’s going to take for you to break even on your investment. That’s something that you always want to keep in mind.
There is also a lot more safety involved in buying gold online – as long as you check out the background of the company that you are dealing with you are rarely going to be ripped off. That part about doing a background check is extremely important. The Better Business Bureau is a good place to start, and you don’t want to rely on user reviews or testimonials because sometimes they are not always honest.
Last but not least, auctions can be a viable method of saving a few bucks on your gold purchase, especially if you are trying to buy a lot of gold at one time. If you are interested in bars or coins, then this could be a great route to go. If you’ve ever been to an auction, you probably know that they aren’t for just anybody. You have to be determined and you need to know what you want and how much you are willing to pay for it before you go in. Just as you can get a great bargain at an auction, you can also get ripped off just as easily if you aren’t careful.
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