You don’t have to be King Midas to appreciate the appeal of gold, a precious metal with a long history of being a wise investment. If you’re at the point where you’re just beginning to explore the many possibilities with gold purchases, it’s understandable to prefer to make your investment as safely as possible. Below, the experts from First National Bullion and Coin, Scottsdale precious metals dealers with years of experience collectors rely on, offer some tips on what’s typically considered the safest way to buy gold.
Determine the Form of Gold You’re Comfortable Buying
The best way to safely buy gold is to have a fairly good understanding of what’s involved with the most common ways to purchase this particular precious metal. This way, you can determine which form of gold you’re comfortable investing in and owning before you start looking for opportunities to make a purchase. There are four main ways to buy gold today:
• Physical gold – Also referred to as bullion, physical gold is generally considered a safe buy for both newer and more experienced buyers. In this instance, you’re getting a tangible physical asset you can store in your home or another secure location.
• Gold stocks – With gold stocks, you’re buying gold in “paper” form as stocks from a mining company. Gold stocks can be safe as long as the mining company is reputable and stable and you’re adept at keeping up with market trends and patterns.
• Gold funds – With gold funds, you’re buying shares in various gold-related assets. The main advantage here is more liquidity, meaning it’s easier to convert gold funds into cash when need be. Also, gold exchange-traded funds and mutual funds come with some legal protections for added peace of mind.
• Gold futures – What you’re doing here is entering into an agreement to buy or sell gold at a later date. What’s actually being traded is the contract. The main drawback with gold futures is the risk involved. Consequently, this type of gold investment is generally not recommended for newer investors.
The most common recommendation for new investors or ones preferring an added safety net is to buy physical gold. This is because with bullion, you’ll be getting a physical asset with a clearly defined value that remains fairly consistent even with occasional market fluctuations.
It’s also safer to buy gold if you go the slow and steady route. In other words, make smaller purchases first until you get a feel for gold prices and the factors that typically affect demand and value. This also makes it easier to diversify your portfolio and make purchases that fit into your budget.
Look for a Reputable Seller
Safely buy gold by making your purchases from a reputable seller. This can be from an in-person seller or one based online. However, it’s best to avoid online auction sites, since there are limited protections with such transactions. Reputable sellers provide related documentation and gold that’s clearly and properly marked. Determine what a reputable seller is by considering:
• Posted reviews from customers
• Number of years in business
• The variety of gold you can purchase
• The stated return policy and similar conditions and terms
• The amount of markup based on the current spot price for gold
• Customer support accessibility if you have any questions or concerns
Whether they’re looking to buy gold bars or silver bullion, Scottsdale collectors should work with trustworthy precious metal dealers who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to invest in precious metals, including silver, gold, platinum, and palladium. Give us a call today at (480) 546-5089.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.