In the event that you’re looking to buy gold and keep it safe somewhere, you don’t need to barricade your closet with steel frames. In fact, all you need is an investment account.
How To Buy Physical Gold
The most popular choice people go for are gold bars that are commonly known as bullion bars. Bullion gold bars are often sold in grams or ounces, with the purity, manufacture, and weight stamped on the golden bar.
Your gold bar purity level is an important factor when purchasing gold bars. When investing in gold bars, the gold purity level should be at least 99.5%. This is especially important if you plan on storing your gold bars in an IRA account. Otherwise, anything less than 99.5% won’t be allowed to be stored in your gold IRA account. You can purchase gold bars from dealers, private individuals, or online gold websites like Goldco, Augusta Precious Metals, or Regal Assets.
Another way to purchase gold is through popular collectibles that come in the form of gold coins. You’ll have to pay a premium for the collectibles compared to what you would have to pay for the same amount in gold bullion bars. Gold coins often have a lower gold purity level than gold bars. A single once of an American Eagle coin will only contain 91.67% gold. These coins usually weigh 1.1 ounces with 1 ounce containing gold, the rest being copper or silver.
These gold collectable coins could be found through dealers, pawnshops, and private sellers. If you decide to purchase these coins online, U.S. Mint’s database has a list of dealers. This will save you the hassle of dealing with forgers or gold that isn’t as pure as you might have been told to be.
Gold chains and bracelets can provide another route to purchasing gold. But just like gold coin collectibles, you’ll most likely pay extra for the amount of gold you’re actually getting. Premium prices can range from 20% to 300%, depending on the manufacturers. Keep in mind the purity levels won’t be the same as gold bars. Manufacturers typically use alloys that combine gold with other metals to make their jewelry more durable or to adjust its color.
Just like gold coins, you’ll want to do your research when purchasing gold jewelry. You’ll want to ensure that the person you’re buying the gold jewelry from has a good reputation. Jewelers of America has a list of jewelers who have signed a code of professional conduct that requires them to be transparent about their jewelry pieces. Look to make sure they’re able to provide as much documentation as possible to ensure the quality of your gold when you consider reselling.
What Should You Consider When Buying Physical Gold
If you decide to purchase physical gold, you’ll want to keep these things in mind.
Storage: You’ll want to keep your physical gold stored in a secure location. You can definitely keep your gold stored at home, but many investors prefer their gold stored with a custodian. There are different options out there that you’ll want to research before pushing your gold. Keep in mind safe storage will add to the cost of your gold investment holding.
Insurance: Whether you’re storing your gold at home or at a storage facility, you’ll want to ensure your gold investment is safe from any possible theft or even natural disasters. If you’re keeping your gold with storage providers, check on the provider’s policy to determine how they will be protecting your investment.
Manufacturer: Always research who you’re buying your gold from to ensure you’re getting exactly what you’re paying for.
Purity: No matter if you’re buying a gold bar, gold coin, or gold jewelry, the content of gold has a big impact on the value and worth of your gold holding. You’ll want to ensure the purity of the gold you purchase is strong enough to hold its value for when you might consider reselling. 91% to 99% pure gold is typically a good range of gold content.
Related Article: Goldco Precious Metals IRA Company Review
Other Ways To Buy Gold
Physical gold isn’t the only way to own gold. Other ways to have ownership of gold are through stocks in gold companies, mutual funds, and ETFs.
Instead of purchasing physical gold and finding storage for them, you can buy stocks in companies that mine for gold and refine gold.
Their stock prices may not match the prices of physical gold, but they’ll likely be correlated. This will put you in the gold investment world without the hassle of finding pure gold and storing them somewhere safe.
Gold Mutual Funds and ETFs
Instead of investing in one company and depending on them to continue their gold mining and refinery, you can invest in a diversified basket of gold-related securities through gold metal funds or ETFs. Gold mutual funds will track gold prices, multiple gold stocks from different gold mines and refineries, or provide exposure to gold futures and options.
Futures And Options
While highly speculative, futures and options may be an attractive approach to investors looking to take on more of a risk. Futures allow investors to commit to buying or selling gold at a specific price. With option contracts, you’ll be agreeing to buy or sell gold if it reaches a specific price on a date decided beforehand.
Is Gold A Good Investment
Gold is often considered safe haven for wealth due to its ability to retain its value throughout time. Even through extreme market dips and inflation, gold’s price volatility has kept too minimal levels in movement. So if you want a diversified portfolio, aim to have gold occupying a small percentage of your investing dollars.