Buy Gold

buy goldIf you want to buy gold, that is to say to buy gold coins, bullion bars, or other forms of gold and have the physical possession of it, then there are a few things that you need to think of.

Of course the first thing is to make sure that you don’t overpay for your gold.

Gold coins and bullion bars are sold at a premium over the actual price of gold, that is to say if gold is £900 per ounce, you’ll be paying more like £950.

The reason for this is simple, and it is because of the trust element, plus demand.

Many investors prefer to have a gold bar or coin that has been minted or produced by a known gold company because they are absolutely sure of what they are getting for their money, and it’s the same when they come to sell.

It in a sense eliminates the risk and danger of parting with a large amount of cash for a physical commodity.

It might be that you’d prefer to buy scrap gold so that you aren’t paying a premium, or to buy directly from other people rather than through companies, but this has it’s own set of risks which we covered on our scrap gold page.

Secondly is to consider the security of your gold, that is to say you need to make sure that you have it safely locked away if you keep it at home, because if it is stolen it will be almost impossible to recover it, and very difficult to get an insurance company to pay out.

One of the favourite tricks of burglars for example was to take a pre-filled in envelope for say “cash for gold” so that they could put any jewellery they stole into it and pop it into the nearest post box.

If they then get caught by the police they have nothing on them, and the money is paid into their accounts directly.

You need to think about getting a concealed safe if you are to be keeping serious quantities of gold at home, or at least to have a very good place to hide it where it is unlikely to be found.

In some ways holding the gold yourself gives you greater flexibility, you can access it whenever you like, and sell it a bit at a time, or all at once if you prefer when the gold price reaches a level that you’re happy with.

You can also control who you sell it to which will influence the price that you are able to achieve, which could be significant if you have a lot of gold.

However, if you are uncomfortable in actually having possession of the gold because of concerns with security or it being lost or stolen, then you could consider gold stocks and shares, which offer a safer way to invest in gold in some ways, and comes with varying levels of risk.