An increasing number of investors are turning to gold bullion in order to safeguard their investment during these turbulent economic times. Investing in bullion is a great way to find a safe harbor in the current economic climate that promises security and potential for growth.
Gold bullion investment is popular among gold investors because it is a straightforward method of direct investment in gold. The value of gold bullion is directly linked to the current price of the metal. Buyers of gold bullion can accept delivery of the coins, or they can have them stored by a bank or other institution.
A popular bullion coin is the American Eagle bullion coin, which is backed by the U.S. government and is minted in four denominations. Other popular bullion coins include Australian and Canadian coins.
There are a variety of ways that consumers can purchase gold bullion coins. They can go through dealers or buy directly from mints. Here’s a few tips investors should follow when buying gold:
Know the purity and weight: There’s a big difference in the value of a one ounce bar of 24 carat gold and a bar of 22 carat gold. Make sure you fully understand what you’re buying before you purchase it to avoid being disappointed when the time comes for you to re-sell.
Buy in bulk: When purchasing gold bullion, it pays to buy a bunch at one time. Gold bullion is sold at a premium above the spot price of gold. The more gold you buy, the less this premium is. That’s why it pays to buy large quantities of gold bullion, instead of trying to buy it piecemeal.
Trade with reputable dealers: If a deal sounds too good to be true, it probably is. Make sure that you’re trading with reputable dealers of gold products. Check out online discussion forums and talk to friends and fellow gold investors before using a dealer you don’t know or are unsure of.
Decide whether you want delivery: One thing many investors like about gold is that it’s a tangible investment, meaning that you can take delivery of it and store it yourself. However, storing gold poses some challenges. You need to keep it in a secure place that’s safe from burglars and other threats like housefires and earth movement. You’ll probably also want to insure it. For investors who don’t want these headaches, many gold dealers offer storage services… for a price.
Check for hidden costs: While all dealers charge a premium for gold, they may also charge other fees involved with shipping, storage and transaction fees. Make sure you’re aware of all fees before buying.
Gold has tripled in price since the onset of the recession. Weak economic data suggests gold will continue its ascent. By buying gold bullion and buying it smartly, you can capitalize upon this.