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How to Buy Gold Bullion as an Investor • 0 Comments Ranked #19,901 in Business & Work, #413,084 overall | Donates to Squidoo Charity Fund

Tips and Sound Advice on Buying Gold Bullion

Most investors don't know where to begin if they want to purchase gold bullion for their portfolio and it can be tricky buying gold in the open marketplace. We will give sound advice as to the procedures in your first gold transaction in order to avoid any costly mistakes. Like most investments one must do their homework in advance and understand all the options whether you are purchasing physical gold or buying paper gold such as certificates and ETF's. Each has its advantages and disadvantages. Talk to a number of brokers before you make a purchase so you understand the commodity market. It may


seem difficult at first but quickly you will understand how this market operates. Develop a plan for your portfolio including a plan of the percentage of gold bullion which you would like to own. Try to secure books such as the ABC's of Gold Investing. You can get a copy of this book online. In addition to gold bullion you may want to purchase a percentage of silver coins for your investment program. The more you read about precious metals the better off you will be when it comes to your first purchase of bullion. Make sure you are dealing with a broker of high integrity. If you are buying online I would suggest a company like Merit Financial or Blanchard and Company.

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Options in Buying Gold Bullion Investors have always believed gold bullion to be a great alternative investment for their portfolio and a safe asset. Preservation of capital is of primary concern for many investors as well as a hedge against inflation are factors required by most investors who consider gold as an option in their investment program. One concern for many investors is that gold doesn't offer a monthly cash flow or interest on the investment. However, gold has increased an average of 17% every year for the past 10 years which should make up for any loss of interest return.


Buying gold bullion can become somewhat complicated if they are not familiar with the safeguards and sound procedures in purchasing gold in the marketplace. One can purchase gold bullion in physical, etf's or gold certificates. through a broker. For the small investor buying physical gold bullion is very popular but the investor has to store the gold in a safe location. Many investors do not want to store their gold bullion at home or in a safe deposit box since they are unable to get insurance for the assets. A vaulted gold program by the Richard W. Davey Organization has recently become very popular since the gold bullion is stored in an insured vault in New York. Another popular way of buying the metal is the gold certificate. These can be bought from your broker. The investor cannot cash in their certificate for gold and thus is not in physical possession of the gold investment. You have to pay a fee when you buy the gold certificate and also when you sell your certificate so the fees can be somewhat high. The advantage to this program is that you don't pay for a storage fee. Many of these certificate investments have unallocated gold in their program and thus don't receive gold in exchange for the certificate. ETF's or exchange Traded Funds is another option in buying gold. These funds are bought and sold on the stock exchange similar to stocks. Share prices fluctuates as the price of gold changes. The advantage is that they can be bought or sold quickly on the stock exchange. Once again, the investor does not have physical possession of the asset.

Gold Coins For the beginner I would suggest that one purchase American Gold Eagle coins from the U.S. Mint. You can be assured of the purity of gold with these coins and they can be sold very easily should you decide to divest of your investments in the future. For a one ounce gold American Eagle one should pay no more than $100 above the spot market of gold. Some brokers may want to charge up to $200 above the spot market. You can buy these gold eagles online and are the favorite among coin collectors. These coins can be sold to collectors or investors anyplace in the world so there is a high degree of liquidity. Don't buy numismatic coins. Many times one would pay double the bullion price for a rare coin and never get their return out of the investment. Some consider numismatic coins - fool's gold so be very careful in the type of coins you are buying for your investment portfolio. The American Gold Eagle is the world's leading gold bullion coin since the government started producing them in 1985. The Eagles are 22 karat gold and are guaranteed by the United States government for its purity. These coins have a small amount of alloy which creates a harder investment bullion coin and resists scratching. Investors who buy the Eagles have confidence that their coins are 22 karat gold. For the past 6000 years gold has been treasured for its beautiful luster and value. Investors today seek gold for its widespread appeal as an alternative investment. A great measure of the American Gold Eagle is its liquidity factor.....these coins can be bought and sold anywhere in the world.

Precious Metal Coin


by richard-davey-37

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