Most people associate investments with the stock market when they think of the word investment. This association is logical. The stock market is an excellent place to build wealth over time.
The stock market can be volatile. Some people are hesitant to invest in the stock market because of its fluctuations since COVID-19.
Gold investments are often popular during such times. Gold buying is a great way to diversify your portfolio and hedge your assets.
How do you buy gold? How can you buy gold within your budget?
There’s good news for those who are still unsure. This is not something you have to do on your own.
This guide will show you how to buy gold in different ways. Let’s get started, so let’s go!
Purchase of Gold Coins
The most popular way to buy gold is to purchase coins from the US Federal Government. People have used gold for currency throughout human history.
Around 600 BC is the date when the first gold coins were issued as currency. In this year King Alyattes, a Lydian King, made the first official declaration that gold was money. The first mint was established by the Lydian government.
Many countries continued to use gold as a currency until the 20th Century. The US maintained the gold standard until June 5, 1933. Congress passed a joint resolution on that date, nullifying creditors’ right to demand gold payments.
The US government still mints gold coins as an investment token. You can therefore buy gold coins directly at the federal government.
These coins have a national symbol inscribed into their faces. This is usually the American Eagle image. This symbol makes it stand out and attractive to investors and collectors.
Purchase Gold Bars
It’s a great way to get gold by purchasing gold coins from the government. It is however one of the most expensive ways to purchase gold. These coins are also known for their national symbols.
It can be difficult to store gold coins. This may mean that you will need to spend more on storage.
What other options are there? You can save money and buy gold bars from private mints instead of purchasing gold coins from the government.
We mean what you are likely to see when we talk about gold bars. They are the same shape you would see in a Richie Rich cartoon or Scrooge McDuck cartoon.
Gold bars are cheaper for a number of reasons. One reason is that they don’t have the federal engraving of a coin. This means that you don’t need to pay extra for it.
A second reason is the fact that many private mints offer precious metal bars and gold. There is room for competition among competing investment companies. These companies are forced to offer investors more affordable prices because of the competition.
However, the government is the only entity capable of minting official federal coins. They are therefore able to set their prices more freely.
Finally, gold bars are easier to store than gold coin. Bars can be stacked and stored in a variety of ways. These bars are ideal for home safety as they have a large storage capacity.
There are other options if you don’t like the idea or the government emblem but still want gold coins. You can purchase these assets from the government instead of turning to private mints.
Private mints produce precious metal coins with a similar appearance to those purchased from the government. Experts refer to these private coins by the term “rounds” in order to distinguish them. These coins do not bear the American Eagle on their faces.
Private mints might add other designs. Investors can indulge their collector side by trying to collect as many round designs possible.
Private mints can often produce rounds at a lower price than government-minted counterparts. These rounds may be a creative option for buying gold.
The Gold Buying Process
Once you have decided which gold investments you like, you can begin the process of acquiring them. In this section, we’ll briefly discuss the process.
Find a trustworthy dealer first. There are many scams in the precious metals industry, as well as many shady practices. Do your research before you make a purchase from a dealer.
Pay attention to unexpected fees. A lot of gold dealers charge higher than the “spot price” for gold. This is the price that gold trades on an exchange.
Dealers often charge a fee to purchase their premiums. Additional fees may include distribution and manufacturing charges.
After you have found a trusted dealer, you need to find a safe place to store your precious metal assets. These options are plentiful.
You can purchase a safe to keep in your home. This route will allow you to find a safe in a discreet location. Only give the safe code to your family members.
You can also use the safe deposit box at your bank. These boxes can be quite costly depending on the size. A bank box of standard size can run from $30 to several hundred dollars per year.
Consider purchasing insurance for your gold once you have purchased it. You will need separate insurance as most home insurance policies won’t cover this asset.
Learn How to Buy Gold Today
This guide will help you buy gold. You will need to do some research before you buy gold. Once you have a good understanding of the market, you can begin to hedge your assets with gold.
You can purchase from us to get started! Investors across the country can purchase gold and other precious metals at high quality prices. Contact us today if you have questions about gold investing!
How to buy gold: All options explained by CMI Gold & Silver