How to Buy Gold Bullion

Where to Buy Gold Bullion

Where to Buy Gold

If you are thinking about investing in gold you are probably wondering where to buy gold.

Of course, there is probably a local coin shop that sells gold coins. But, a typical coin shop may sell a few gold coins a week and has to add a hefty overhead to the price he charges you to keep his shop open.

You may also be tempted to buy gold at popular Internet auction sites. Certainly, most sellers are honest, but sometimes you run into unscrupulous sellers who are out to make a buck at your expense. Unless you are familiar with the seller and the specific merchandise being offered, it would be best to be wary of good deals at these sites. For example, you’ll see a lot of gold bars offered very cheaply. The descriptions often include a phrase like “100 MILS” which indicate just a thin coating of gold over another substance like copper. So, you need to know what you are bidding on.

There has to be a way to buy gold at the optimal price with as little overhead a possible. And, of course, there is.

First, you should understand how gold is priced on the open market.

Like most commodities, there are people who want to buy gold and people who want to sell gold. Buyers offer a “bid” price at which they will buy gold. Sellers offer an “ask” price at which they will sell gold. The bid price is typically a little lower than the ask price. When a buyer and seller agree on a price a transaction takes place.

These transactions are often for hundreds of ounces of gold. Since you will probably be buying much less on any transaction, you will need to pay a bit more than the current “market price”. How much more depends on the particular gold dealer you work with.

You will make money when the price of gold goes up over time. Over the short time, the price of gold may go down and if you have to sell at that time you will lose money.

And, like most commodities, gold has a “futures” market. There is where people guess about the future price of gold and offer to buy or sell gold at a certain price on a certain date in the future. People who think they know what’s coming in terms of inflation, deflation, political or military situations can sometimes make a lot of money simply buying and selling gold futures without holding gold at all.

Where to Buy Gold

If you are wondering where to buy gold as part of your investment portfolio you will want to deal with one of the established gold dealers.

When you are just starting out, you may want to deal locally with a coin dealer. They will charge a bit more than the spot market price, but you will have your gold coin in hand right away.

Once you are comfortable with owning gold, you may be ready to deal with major gold dealers.

Major gold dealers will be found on the Internet and will provide the ability to purchase quantities of gold online. They will have a physical office as well as an Internet presence. Their office may not be in your city or state. But, many have offices in major economic areas such as New York, London, or Zurich.

Participate on various gold forums on the Internet. Learn what members have to say about their experiences with gold dealers. You will learn a lot from other people about where to buy gold and who are actively involved in gold and precious metals. Some forums include:

• Gold Forum http://www.gold-eagle.com/cgi-bin/gn/get/forum.html
• Gold and Silver Forum http://goldismoney2.com/forum.php
• Kitco Forum https://www.kitcomm.com/

The more you know about gold, dealers, as well as the experiences of others, the more comfortable you will feel having a portion of your investment portfolio in gold.