Buying Gold Online

In an age when the world’s economy is down, prices are up, and jobs are no longer guaranteed, people must turn to other sources of income for the security of themselves and their families.  Those with an eye for investments often turn to purchasing gold, an industry that has seen massive growth over the past decade.

Gold has been steadily gaining ground as an investment option. Given the professionalism and expertise of online retailers, and the ease and convenience of paying with a credit card, wire transfer, money order or check, more and more investors are taking the online leap for their gold investments. If you would like to make a purchase of gold bullion online, check out who sells many brands, types and sizes of gold bullion. To learn more about buying gold online read on.

Buying Gold Online: Simple, Safe, Secure

While there are several alternatives when it comes to buying gold, companies that operate online offer many benefits over their offline counterparts. First, the overall cost of an online transaction, including gold prices and premiums, are generally lower than what local dealers are able to offer. Online gold purchases also bypass sales tax, further lowering your cost. And when you consider the wide selection of retailers as well as their diverse inventories, buying gold online seems a much more convenient and cost-effective way to make your gold investment.

Purchasing gold bullion online is not a complicated process, although it does have very specific requirements.  Some of these requirements are set by the industry itself, while others are set by each individual retailer.  These requirements are meant to safeguard your investment and are necessary for best practices. It is important to speak to an agent to ensure the exact guidelines are being followed for the purchase, as this will keep the transactions swift, satisfactory, and most importantly, legal.

Another consideration is doing your own due diligence. Make sure to research a dealer’s standing with the BBB – as the BBB provides full reports on all reputable dealers. Here is an example JM Bullion BBB rating for your review.

Price Comparison and Locking Your Price

When purchasing gold bullion online, it is important to lock in a price.  Some retailers require this to be done by phone, as they want to be sure they are dealing with an actual person, rather than an automated purchasing system which could defraud them.  However, there are several online methods for purchasing gold, as well as retailers willing to sell through these methods.

In order to lock in a gold price, the buyer must first choose a dealer.  It is best to refer to a several different dealers, both physical and online, in order to get the most competitive price for the purchase.  Note that while spot prices are likely to be similar for most dealers, the premium for each product may be different. Do not be afraid to quote cheaper prices that have been found when speaking with different gold dealers.  This will show that the buyer has researched their options, gaining the respect of the dealer.

When dealing online, compare the spot prices offered by a range of dealers, and then compare that with the fees charged by each dealer as well.  Select the best spot price and fee combination to suit the allowed budget and contact the dealer to lock in the price.  In general, once a price is locked in, the buyer is allowed a maximum of ten days to provide the funds for their purchase. Depending on the payment method used, this timeframe may differ.

Range of Online Options

With so many retailers available online, there is no reason for a buyer to be unable to find a suitable spot price and fee structure. Each retailer is different; however, most offer a cheaper rate on bulk purchases, so buyers should keep this in mind when checking spot prices listed on each retailer’s website. Do not be afraid to contact the retailer to ask about bulk purchase discounts.

Types of Gold

Do not forget to consider the type of gold you wish to purchase.  Some types hold a higher value than others, thus determining the amount able to be purchased with the chosen budget, as well as the possibility of a lower value in the future.  Items such as Canadian Maple Leafs, American Gold Eagle, Austrian Philharmoniker, and Australian Lunar Series are well-known coins that are widely accepted in the gold trade.

For those seeking a slightly different type, the South African Krugerrand is an acceptable choice.  Do not, however, expect to list this type in an IRA or SIPP, as they are not allowed due to their lower purity rate.  The lower purity of these coins is equalized by their larger size, thus making up the proper weight necessary for trade values.

A Worthy Investment

With the wide variety of options available in terms of gold types, convenient shipping methods, and even automatic purchase programs, it is not surprising to see that thousands of people are turning to the gold market for security.  With the price of gold on a near constant rise, it is a wise choice for buyers to create well-suited budgets for investment and determine which options will best suit their investment objective.