A pawn shop can also sell gold. Keep in mind the spot price of gold (the price per ounce right now on the market) as you buy, so you can make a fair deal. Buying physical gold bars online is a fairly simple process. A common way to buy gold bars is through authorized online retailers or by consulting a Gold IRA expert. Prospective buyers can search for gold bullion products on reputable retail websites, such as the American Precious Metals Exchange (APMEX), JM Bullion and Coins Wholesale Direct.
You can choose gold by weight, quantity and price. Physical investors in gold are often looking for items with a fine of $0.999. Several products fit this description, and one of the most preferred are gold bullion coins, such as the South African Krugerrand or the American Gold Eagle. Minted coins are another common way to buy physical gold. They should not be confused with the old rare coins collected by numismatists, these coins are new, minted by governments for investors.
The prices they get are based on their gold content, also known as their fusion value, plus a 1 to 5% premium. Here, Investing News Network explains what it takes to create and manage a physical gold portfolio. From an investment point of view, investors who want to add the physical product that tracks the price of gold may prefer to avoid gold coins. Local coin stores also usually have a limited selection of precious metal products due to the store's physical restrictions and limited clientele.
Physical gold suitable for investment, also called gold ingots, can be purchased at the spot price, which is the price of gold without manufacturing plus additional costs, which vary depending on the seller. Physical ownership of gold involves a number of unique costs, including storage and insurance costs, and transaction fees and margins associated with buying and selling the product. Neither that nor the fact that an ETF is physically backed bring a person closer to owning gold. So, should you go for the gold? Although it usually becomes part of the conversation during times of economic crisis or political uncertainty, gold as part of your portfolio makes sense at any time as a diversifier of your shares, if nothing else.
Investors must clearly understand that buying physical metals is not the only way to expose themselves to the gold market. Banks usually offer physical gold with a lower profit margin than dealers, but finding a branch that actually has it can be more difficult. Unfortunately, some investors don't realize until they make their first purchase that the spot price isn't what you actually pay for physical gold. However, physical investors in gold must also predict when they will want to sell their gold.
Instead of investing in physical gold, you can buy shares in companies that extract and refine gold. Some investors prefer to buy gold from local merchants, allowing them to physically inspect the gold and pay for it in cash. This allows you to expose yourself to gold as an investment without the risk or headache of dealing with physical gold. Investors are encouraged to consider creating physical gold positions as a long-term investment, possibly even to save for retirement.