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 you may want to consider the best self directed IRA for Gold. 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. Before you start comparing the prices of different precious metals traders, you should make sure that the traders you are looking for are actually licensed to sell precious metals. Spending time verifying their condition will not only ensure that their merchandise has been legally obtained, but they will also understand the various policies related to the sale of precious metals, such as taxes and reporting. Search dealer websites to make sure you're paying a fair price for gold.
Check exchange sites to find out what the spot price is and expect to pay a premium of 5 to 8% above the spot price of a gold coin. And while owning stocks won't allow you to hold gold in your hand, it does mean that you have the benefit of an asset that you can sell at any time. For people who are still going ahead with buying gold, buying gold in the form of tradable securities is a much easier and cheaper way to incorporate it into a portfolio. Even if the gold bars are genuine, the seller's charges can be exorbitant and buyers may have trouble processing gold through customs, depending on the quantity purchased.
Durrett advises gold bullion buyers to shop online and sell locally, explaining that local retailers cannot compete with online stores and generally charge customers more. Often, the best thing you can do for your portfolio is to follow your investment plan, not rush to buy gold bars. After all, that's one of the main reasons why investors hold physical gold and silver in the first place. 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.
Gold traders usually charge more than the “spot” price of gold, or the price at which it is listed on a commodity exchange. The Mint contains 91.67% of gold, but it costs more than pure gold bars because of its value as a collector's item. And while it may be the most exciting way to invest in gold, it's also the most difficult to buy, store and sell. Pawn shops aren't known for their fair prices, and if you sell your gold to a dealer, you're likely to sell it below the spot price of gold.
Investing in gold stocks, ETFs or mutual funds is often the best way to expose yourself to gold in your portfolio. These coins usually have attractive designs, have historical value and contain a smaller amount of gold, but they still cost more because of their numismatic value. But while he is clear that he doesn't think investing in gold is a good idea, Smith does recognize the attractiveness of physical metal. Investments in other types of precious metal ingots, such as silver, provide another means of diversification beyond gold bars.
And while the stock market has its ups and downs, investing in physical gold can involve many unexpected costs and considerations, such as insurance and safe storage.