Buying gold can be a substantial financial investment in your future. While the economy can be volatile, gold is tangible and thus more secure than other investments. If you are ready to get your hands on your gold, you may have just one question: how? While there are plenty of websites that are happy to sell you gold, the most secure method may be through a bank. Be sure to consider all the critical facets of purchasing gold before you make your investment.
Types of Gold Investments
There are several ways to invest in gold. The first and least lucrative is to purchase gold jewelry. If you want something more substantial, you can choose either to buy gold bullion or mining stocks. With mining stocks, you invest in the mining company itself, whereas gold bullions give you access to the precious metal itself.
If you want to grow your wealth over time, you may be better off putting your money into mining stocks. You can trade these stocks when you believe the time is right, just like with any other stock purchase. However, if you're turning to gold to have tangible assets and to secure your current wealth, go with gold bullion. While these aren't meant for trading, gold bullions can give you security through a financial crisis, even when the dollar is weak.
Find a Trusted Bank
Once you have decided which way you would like to invest in gold, you can choose the right avenue for the purchase. For gold bullion, you can check the United States Mint website. They have a locator that allows you to see all of the gold dealers in a certain zip code. On this list, you will find businesses that solely trade precious metal, jewelry stores and banks. If you wish to purchase from a bank, find one on this list in your desired location.
If there are several banks near you, be sure to use the compare feature on the Mint's website. This will allow you to see the rate that each bank will charge, so you can decide which choice is right for you.
Prepare a Strategy
After you have decided on a bank, you're almost there. But before you charge into the bank, make a plan. You may want to purchase your gold coins in one-ounce sizes. Compared to the fractioned sizes, the one-ounce coins don't come at a high cost. If you want the most gold for your dollar, you should also be sure to avoid purchasing rare coins unless you hire a professional grading service to accompany you. Unless you plan on buying lots of rare coins, hiring such a service isn't worth the price or hassle. Instead, invest in the American Eagle gold coins, which must carry a certain grade.
Be sure to buy your gold at the right time, too. As with any investment, you want to buy as low as possible and avoid selling until the investment is worth more. Look up the current price of gold and trends in the market to determine when the time is right.
Go for Gold
With a trusted dealer and a strategy in mind, you can finally buy your gold. When gold is low-priced enough, go to your chosen dealer and ask to buy some gold coins. Tell them which ones you want, in what denominations and how much. The bank should issue certificates for your gold. These certificates show each piece's authenticity.
- You can buy cold bullion coins directly from the U.S. Mint online if you prefer to do so. There are also a number of gold and metals dealers available online and in cities around the world.