You may come across several ways to invest in gold. However, the simplest mode would be simply to purchase physical gold or bullion. In case, you wonder on the best ways to invest in gold bars, let us delve on it.
Should you invest in gold coins or bars?
You would have the option of purchasing bullion in two major forms:
- Bars (ingots)
The benefit of gold coins over bars has been their ability to make you highly flexible. For instance, if you were having gold coins, you would be able to sell 20% of your gold instead of having your entire investment in a single gold bar. The benefit of flexibility helps you see the coins being more liquid (relatively easy to sell) as compared to big bars. It would be pertinent to mention here that in event of you looking forward to purchasing a significant amount of gold, the bars would be your best option. It would be a sound investment from a practical point of view.
Investing in gold bars
In case, you were looking forward to investing in physical gold, you should rest assured to look for the lowest price available per ounce. In such a scenario, your best bet would buy buy gold bars. Even though people may find gold coins an alluring option, you should rest assured that manufacturing and packaging would come at a higher price. On the other hand, the gold bars have been deemed as the stalwart in the arena. Every person ranging from central banks to average investors would look forward to purchasing and storing gold bars. In other words, purchasing gold bars would be a sound investment. However, you would be required to follow a few imperative tips. It would be inclusive of the following aspects:
– Why purchase gold bars?
– From where to purchase gold bars?
– What kind of gold bars to purchase?
Let us delve on them in detail.
- Why purchase gold bars?
Gold has not been used as currency in the present times. However, its role as money has been known to make it superior to other available currency. It would not be wrong to suggest that gold has been a form of money longer than other available currencies in the older days. An important aspect to consider would be gold serving as long-term storage value. It would serve the purpose better than other available fiat currency.
Purchasing physical gold would provide you with an option to hold it in your hand, which apparently would not be possible with other available. It cannot be destroyed by water, fire, and time. It has been deemed as finite, tangible, and liquid. You should rest assured that gold could be converted into cash. It could be taken anywhere. It would be pertinent to mention here that physical gold has been ideal forms to preserve wealth for a significant length of time. It would also be deemed perfect as heritage. It would outlast other available forms of currencies and the ones to be used in the future.
Benefits of purchasing gold bars
The major reason why investors choose gold bar would be it being less expensive as compared to gold coin. It would entail lower premiums than coins. Despite the coins being attractive with their intricate designs, you should rest assured to be paying additional money for their appeal. Other benefits associated with gold bars purchase would be ease of storage. The gold bar would take up less space as compared to similar ounces of coins.
- From where to purchase gold bars?
You should purchase gold bars from a reliable and reputed dealer only. The dealer should have a positive image in the industry, no pushy salespersons and buyback policy.
It would be imperative to purchase gold bars from a reliable and reputed dealer only. A reliable dealer would cater you with a sound education, avoid pitfalls and find you the best products suitable to your needs and budget.
In case, you wonder on how to find the best bullion dealer, look for the below-mentioned aspects.
1.Check for their experience
You should give preference to the dealer having spent considerable time in the industry. You should rest assured that experienced dealer would have repeat customers. It would be their positive image with the customers and the industry that makes customers come back to deal with them.
2.Look for an educated dealer
You should stay away from dealer looking forward to promoting an expensive product. They would look forward to steering you away from gold bars to rare coins entailing higher markups. In case, you were not comfortable with the dealer, you should look for the right one suitable for your specific needs.
3.Look for buyback policy
Is the dealer willing to purchase the gold you bought from them later? In case, they do not offer buyback policy, you should shop someplace else. They should offer you the best resale price. Having the buyback policy would ensure you to have a dealer ready and willing to purchase the gold as and when you wish to sell it.
4.Online store Vs land-based stores
Purchasing gold bars from an online store would be convenient and easy. You could purchase gold at any time of the day. It would enable you to lock in the market price suitable to you at the precise time you wish to purchase. A majority of online dealers would be cheaper, as compared to a local shop, despite you paying for shipping. The overhead charges would be relatively lower.
As a beginner, you should consider comparing at least three dealers based on cost, commission, bank wire or credit card fees, insurance and shipping.
- What kind of gold bars to purchase?
The most common and important tip would be to purchase gold bars having recognized hallmark along with proper stamping. It would ensure you are receiving a reputable gold bar. A reputable gold bar would entail its purity, weight, registration number, and refiner stamped on it. Missing of this important information on the gold bar would imply the product is that of low quality or not pure.