How can I buy gold bullion?

Question

Hi, I want to buy 1oz gold bullion and I know there are bunch of sites which sell online. How do I know which one is reliable. Is it possible to buy bullions directly from US gov??. Any advise in this matter is highly appreciated.

thanks

Answer 1

First read "Gold Investing - frequently asked questions" at this link: http://www.invest.gold.org/sites/en/faqs/

Then read "How to Invest in Gold" at this link: http://www.invest.gold.org/sites/en/how_to_invest/

Specific info on "Coins and Small Bars" is at this link: http://www.invest.gold.org/sites/en/how_to_invest/coins_and_small_bars/ Also, gold coins are different than gold bars/bullion. Coins have extra cost associated with the mining process whereas bars can be made directly at the refinery.

This is from the world gold council - so some might think there is a bias. However, they also have a strong interest in assuring that people have good experiences when buying/investing in gold. So, I think that the information is well balanced.

Answer 2

Your best bet is to buy from a reputable (in business a long time) local coin dealer. This way, you can see and feel the weight of the coins before you buy. Also, it's probably best to buy coins issued by a sovereign government and not the 1 oz. bullion (or 10 oz.) that are out there. In some cases, the bullion would need to be assayed or tested (with acid or shaving) to check that it is real (unless it's encapsulated by a the issuing company in a tamper-evident case) whereas if you purchase an American Eagle or Buffalo or Canadian Maple Leaf or other foreign government issue, there's no question of it's gold content. If you do buy gold, understand that it is a very long-term proposition since once you have it, it doesn't do much - it doesn't pay interest or dividends but I would think that it is nice to take out and look at from time to time. You will likely lose money in the short term until inflation increases it's value over a long period of time. The recommended allocation that I've heard is no more than 5% of your total portfolio's value should be in precious metals. Also, when you're at the dealer, you should not be charged any more than around 10% over the spot value of the metal. Below is a link you can check to see the daily spot value. Keep the coins, or bullion, encased in protective plastic Air-Tites since condition (in the distant future) may be important when selling. Good Luck!

Answer 3

With bullion coins you are assuming that the bullion price will go up overtime allowing you to make a profit. There is no guarantee that this will happen and like any investment you are taking a risk on the direction the market. I would suggest that you learn about gold collectible coins like a St. Gaudens 20 dollar piece or an Indian Head 5 dollar piece. While there is no guarantee they will go up in value I think they tend to hold there value better than bullion pieces. Bullion usually trades based on melt value and collectible coins have collectors to help them maintain their value.

Answer 4

The easiest way is to look in the yellow pages for coin dealers .
They mostly charge the same fixed price over spot for any of the coins ( US Eagles , Canadian Maple Leafs etc )

That way you are not waiting on the mail and save delivery charges .

And the government just sells the "proof" and uncircs for which you pay a much higher premium over spot .

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Answer 5

If you also own stocks, the easiest way to buy gold is through the Gold ETF: GLD

http://top10traders.com/ViewHolding.aspx?symbol=GLD

Answer 6

gold is a bad place to put money