Financial experts agree that diversifying one’s portfolio is a safe and wise move. This serves as a safety net should one of your investment vehicles spiral.
One of the useful ways that you can diversify your portfolio is through buying gold. This precious and rare metal gives insurance for your portfolio.
Its value does not change in line with properties, commodities, or equities.
Gold possesses a high value and is well-appraised anywhere in the world. It is a universal currency held by many banks across the globe.
Furthermore, investors are confident that the price of gold will continue to rise. The expected consistent and continual upward trajectory for many years to come reassures investors.
TOP 5 Places for Buying Gold Online
I've done some research and have come up with this list of safe places to buy gold online.
SELLS GOLD BARS?
Buying Gold vs. Gold Stocks and ETFs
The question now is how to go about investing in gold. Some people buy the physical metal while others prefer to buy gold shares. What is the difference between the two? Which one is the safer option?
These are good questions to ask. You wouldn’t want to go all in only to end up making an unwise decision or a poor buy. You need to learn how to safely buy gold online. This helps you in making wealth for yourself by using trusted investment vehicles.
Buying Physical Gold
Buying physical gold means purchasing the actual metal from gold stores and dealers. This gold may come in the form of a gold bar or a gold coin.
Gold bars come in different sizes, ranging from 1g to 10 oz. Big investors, wholesalers, refiners, and central banks buy 400 oz Good Delivery gold, instead.
Refiners and appraisers guarantee that this type of gold is 99.5% fine. But Good Delivery gold bars are only available for high volume buyers.
These premium items may range from $640,000 or higher per bar. High volume buyers, though, are able to get them for lower rates.
Coin collectors prefer buying gold bullion coins because they are easier to store. Some of the popular coin choices are :
Market price of gold may vary. If you buy physical gold, you pay the current price at the time of the sale. If you buy this in states that charge precious metal sales taxes, you will need to shoulder this tax. The good thing about the actual yellow metal is you are able to bring this home or give it to someone. But you will need some safe storage space for this.
If you want your gold transaction to remain anonymous, consider buying gold bullion. When you buy or sell them, the government will only need a few reporting requirements. You won't need to report your sale if it is less than $10,000.
Some financial experts will tell you against trading your gold. Buying physical gold is among the well-known means to preserve wealth. What better way to store wealth than by having something tangible with you, right? Gold bullion is better kept and passed on to the next generation. Consider this as a long term investment because the price of gold is going to continue its upward climb.
Because of this, some investors pay banks an amount of money for storage and insurance fees. They can deposit their gold investment in these banks for safekeeping. Some banks offer safe deposit boxes. If you choose to store your gold in a bank, make sure to deposit this in the safety box yourself.
This is to ensure that you get the title of the gold. It makes sure that the title does not go to the bank as a deposit. There are consequences if the bank goes bankrupt, and your gold was taken as a bank deposit. It is likely that this will be taken from your possession. There are third party storage firms that offer these services, too. Although it costs more than bank storage fees, you avoid risks.
Buying Gold ETFs
What if you can’t find some safe space to store your gold? You can enjoy the convenience of buying gold online without having to worry about its storage.
This is through buying goldexchange traded funds (ETFs). The price of these ETFs rises and falls with the price of gold. Each share is equal to 1/10th of an ounce of gold. You can trade these shares over an exchange.
Compared to the actual metal, ETFs are extremely highly liquid. You can trade these anytime. You may also buy stocks from mining companies. Many investors diversify their gold investments by buying physical, stocks, and paper gold investments.
Is It Safe to Buy Gold Online?
With today’s technological advancements, the answer is yes. You can now safely buy both physical and paper gold investments online. As with any investment, it is important that you conduct a thorough research. True, there are a lot of scams online, but so long as you learn how to buy gold online safely, you won’t have to worry.
Let us first discuss buying physical gold online. People who are new to buying gold through the Internet may feel apprehensive at first. Imagine paying for something that you cannot inspect, much less, take home with you.
Trusted online retailers inspect their inventory carefully. Impurities in the metal will depreciate its value. Top retailers ensure that the coins come straight from the mint and are brand new and sealed. Unless this is guaranteed, look for another online retailer.
Things to Consider Before Buying Online Gold Online:
- License and full accreditation from the distributors, federal government, and the state. You can rest easy knowing that these companies are regulated by no less than the US government. Scam companies will not get a license or an accreditation.
- Company performance and track record. Stable companies are more reliable in this case. Research the best gold dealers for the year. Read what gave them that competitive edge against competitors.
- Positive reviews from clients. There are a good number of online retailers. Check their websites and check the reviews posted. If these customers can vouch on the company, it’s definitely worth considering. You can also use your favorite search engine. Check the results when you input keywords like “buying gold online reviews”. You can get straight and honest feedback from customers themselves.
- A working customer service hotline. Scams are likely to have no customer service hotline. They will not have agents to take care of aftersales communication. The biggest online retailers of gold have different communication channels. Customers can use these if they have inquiries or complaints.
- Updated spot price. As mentioned above, the price of gold fluctuates. It is best to go with a company that posts the updated prices. The company’s website must be up to date so you are assured of the best deals available. This also helps prevent financial losses due to poorly made decisions.
Here's a quick and good video that tells you where to buy and not buy gold:
Buying Gold ETFs Online
If you want to diversify, include other investment vehicles. You can add old ETFs, gold options or futures contracts, and mining stocks in your investment portfolio. You can buy these online, as well. You can also monitor the market performance of such investments using the Internet. Yes, you can do all that inside the comforts of your own home.
Gold ETFs are traded over stock exchanges. These provide investors an option to gain access to gold prices electronically. This option costs less than buying physical gold.
Generally, the steps to buying gold ETFs are similar to buying stocks. To start, you need to open a trading account and log in. Next, click Buy/Sell and enter the script code of the gold ETF you want to purchase. Input the number of units. Last step is to place your order, and that’s it.
To ensure you have invested on the right ETFs, select an ETF that is physically backed. This means, the company guarantees you can gain access to your share of the gold. Thoroughly check the company you are putting your money on. If there are reviews available, equip yourself with some background information. Check all the available funds before you make a selection. The Internet lists the top performing ETFs per year, and this is a good way to start looking for an ETF you can trust.
A good ETF has a solid fund structure and reliable management prowess. You need a company with regularity oversight and operational integrity to avoid counterparty risks. Reliable funds have third-party auditors to maintain check and balance. They conduct a bi-annual inspection on the fund’s assets held in vaults.
There is no danger of gold impurities and undervaluing for ETFs. It is best to regularly check how the price of gold is performing. Just like stocks, you may trade your gold ETFs whenever circumstances are favorable.
Why Do People Purchase Gold Online?
People have turned to the Internet to make their investments. This is whether it is physical gold or gold ETFs they are buying.
Some people prefer the gold dealers nearby. But more and more people are starting to enjoy the benefits of buying these on the Internet.
This is after they have done enough research and a careful deliberation of the choices they have.
Because of the Internet, people are now able to buy and sell gold 24 hours a day without needing a human retailer. Investors also have round the clock access to information. This assures them that their gold is kept safe. It also has information on their ownership published, giving investors peace of mind.
This 24/7 accessibility is particularly important for fluctuating rates. You can buy or sell your gold when the prices are at it’s lowest or highest. Without the Internet, you would have had to wait until morning to contact your broker. This might be too late for you.
The Internet also allows for investors to buy or sell gold internationally. Such purchase or sales are backed by a thorough market analysis. This is often also available online. Nowadays, this trade has been made available to 150 countries.
Company Updates and Information
Before buying, you can visit the company’s or funds’ website to check. You can also see last minute changes and make split-second decisions based from these. You can also see customer reviews or complaints online to help you decide. Customer reviews are important because they can vouch on the funds or online dealers. This is helpful for those whom you haven’t transacted with yet.
Availability of Good Selection of Items
This is particularly helpful for gold coin collectors because they will have access to a wide array of gold coins. They can also select the best prices easily. They can check what the online sellers are selling and for how much. If you cannot find what you are looking for in one website, you can go to another online dealer to check for availability.
Similarly, you can put your coins or jewelry up for sale and have more potential customers online.
Providing quality customer service to customers is key. Most renowned gold buyers and sellers online offers communication channels for customers. These agents can also help them with their purchases and can address your inquiries.
Ease of Use
Investors can make the call anytime, anywhere, with just a click of a button. Most websites have been designed to be as user-friendly, yet safe, as possible. If you want, you can also find and select an online broker to help you with your investments.
There are investors who prefer keeping their investments private. buying online works because they won’t be seen going to
In a nutshell, the Internet is a gold mine for new and tenured investors alike. If you know what to look for and where to look, you will be able to land on the best investments.
Buying gold over the Internet saves you time and is very convenient. Recent technology and security measures have made these transactions safer than before.
Aside from that, information is within reach anytime.