You may come across several ways to invest in gold. However, the simplest model would be to purchase physical gold or bullion. In case you wonder about the best ways to invest in gold bars, let us delve into 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 had 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) than big bars. It would be pertinent to mention here that in the 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 gold bars. People may find gold coins an alluring option, and 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 into 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 currencies. 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 currencies.
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. It will help if you 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 an ideal form 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 investors choose a gold bar is that it is expensive as a thangold 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 a buyback policy.
It would be imperative to purchase gold bars from a reliable and reputed dealer only. A reliable dealer would cater to you with a sound education, avoid pitfalls and find you the best products suitable to your needs and budget.
In case you wonder how to find the best bullion dealer, look for the below-mentioned aspects.
1.Check for their experience
It would help if you gave preference to the dealer, having spent considerable time in the industry. It will help if you rest assured that experienced dealers 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
It would help if you stayed away from dealers 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 a buyback policy
Is the dealer willing to purchase the gold you bought from them later? In case they do not offer a buyback policy, you should shop someplace else. They should offer you the best resale price. Having the buyback policy would ensure you 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 than 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 with recognized hallmarks and 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 this important information on the gold bar would imply that product is the quality or not pure.