June 14, 2024
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Before we answer the question of the safest place to buy gold online, it is pertinent that we find out whether it is safe to buy this precious metal online in the first place. Thankfully, it has been established that it is safe to buy it online but under certain conditions.

First of all, you must ascertain that the vendor you want to buy from is legitimate and trustworthy. For instance, if you want to buy from a firm such as Advantage Gold, you can type ‘is Advantage Gold legitimate’ into the search engine on your browser. It will throw up many results, and you can start from there to research the company or dealer.

It is recommended to go to niche sites for this precious metal and to avoid general merchandise sites such as eBay or Amazon. In this article, we will share more tips on how to safely buy gold online and list other ways of investing in it apart from the purchase of the physical commodity. 

Tips for Buying Gold Online 

We have asserted that one can safely buy gold online, but buyers must do their due diligence to ensure that they are dealing with trustworthy sellers. We will continue the conversation with the following tips:

Look out for Reputable and Trustworthy Dealers

This is the point we started with in the introduction, and we want to expand on it.  It is very important to deal with only reputable firms when buying this precious metal whether online or offline. You can do this by carrying out thorough research on the company you want to deal with. 

The first thing to look out for is their membership in associations like the Industry Council for Tangible Assets (ICTA) and the American Numismatic Association (ANA).  This is because these associations regulate the way precious metal dealers conduct business, and before anyone is admitted into the association, they are vetted to ensure their integrity and legitimacy. 

Dealing with a member of any of these associations assures you that due process and strict guidelines will be followed through the transaction. You can find such dealers by searching the Dealer Directory created by these associations. Click here for more information.

Look out for Bullion/Coins that are Universally Recognized

When you have compiled a list of at least 3 reputable dealers to transact with, you can then begin to look at the type of gold they have. If you are buying this precious metal as an investment, it is best to avoid collector’s coins because their prices do not often reflect the spot price because of the high premiums.

These types of coins are more difficult to sell when you want to. That is why investors are advised to stick with physical commodity that has allow premium that is higher than the spot price.

Although it is recommended that you shop globally for the best bargains, ensure that the bars and coins are recognized globally so that you can sell the many time and any where. This is the surety that you are making a wise and safe investment. 

Below are some of the gold coins that are in demand globally:

  1. The U.S Eagle 
  2. The South African Kruger and
  3. The Canadian Maple Leaf
  4. The Austrian Philharmonic

Compare the Spot Price 

It is very important to know the spot price of gold as you shop around. Get as many quotes as possible and compare the prices; this will help you know whether you are getting a good and honest deal or not.

Due to the fact that fees and premiums can add up fast, it is best to only buy coins that the value is equivalent or close to the spot price of this yellow metal. This is the best way to safeguard your capital.

Visit https://www.fool.com/ to understand factors that affect the price of precious metals.

Universally recognized gold coins as we have listed above are tangible investments and they stand for an ounce of gold. When you order the physical commodity, bear in mind that there will be fabrication fees and brokerage fees.

So you have to factor them into the overall cost of the commodity. Therefore, it is not advised that you put in 5% or 6% more than the spot price when you are buying your gold coins or bullion online.

Do not Borrow to Buy Gold 

Much as we all agree that investing in this yellow metal is a good hedge against inflation, the way you go about this investment is very important.  Gold is not a commodity that one expects fast turnover from, it is a long-term investment. For this reason, it is not wise to take out a loan or borrow money from whatever source to buy it. 

The best way to invest in it is to save money and invest it wisely. Taking out a loan for the purchase of this commodity can land one in trouble if things do not work out as expected.  Take your time and put money together so that when you buy this asset, your profit down the line will not be affected by debt repayment. 

Other Ways of Investing in Gold 

Before we round up this piece, find below the different ways that you can invest in this precious metal apart from buying the physical commodity:

  1. Futures
  2. Precious metals ETFs
  3. Gold mining stocks 
  4. ETFs that include mining stocks 

All these investments give you the opportunity to gain from the strength of the investment without owning the physical commodity. So you do not have to bother about issues such as storage and security of gold bullion or the illiquidity of the physical commodity. 

Conclusion 

Building wealth is something that everyone who has an income should take seriously. This can be done only through wise and safe investments and precious metals investment is a good one. We have shared tips on how to safely buy gold online and listed some other ways to invest in it apart from buying the physical commodity. 

The information shared here will come in handy when you decide to go shopping for gold. Bear in mind that investment is not something that is done on a whim. You have to do your due diligence to get the most out of it. That is why we have shared the tips in this article to help you get started.

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