Questions to Ask Before Buying Gold Bullion

Questions to Ask Before Buying Gold Bullion While you may have thought that investing in bullion was only for the wealthy, nowadays many people are considering adding it to their financial portfolio. However, if you’re new to investing in precious metals, you may be unfamiliar with how this process works. Never fear, if you ask these questions and follow these tips, you’ll soon be on your way to investing in good just like the professionals. Why should I buy gold?  The financial economy is uncertain and often the best time to purchase gold coins is when premium rates are lower. Since 2013, rates have lowered and it’s still a fine time to invest.   In addition, physical gold is generally seen as insurance, something put away in case of an emergency. Where should I buy I buy gold?  Research trusted gold dealers such as City Gold Bullion. Read their reviews and see what they include. Do they include personal customer service and buy back, in case a customer wasn’t satisfied for any reason. What is better to invest in: coins or bars?  Technically, bullion coins retain the status of legal tender because they are created by that government’s mint.   These coins include specific and detailed designs, and some change yearly. Often, bullion coins are more collectible than bars, but you need to use caution and make sure you’re getting the actual melt value and not overpriced for a “collectible” value. On the other hand, bullion bars are precious metal shaped into rectangular slabs and produced by private mints. They are not legal tender but they are a good way to buy pure silver bullion at a lower spot price without paying inflated premiums.   While coins may sometimes be easier to trade in an uncertain economy, bars are often easier to store, which makes them appealing for beginning investors. How much money should I invest in bullion coins? Typically, you should include physical gold in around five to 10 percent of your financial portfolio. If you just beginning, invest at least half of your money in one-ounce Silver round.  These are nearly 100% pure gold and the rest in well-known gold bullion coins. Speaking ofWhat kind of gold coins are the best to invest in?  If you’re going to invest in gold coins, choose ones that are well known and are created by the Perth Mint, the Canadian Mint, or the US Mint.   Some popular coins include the Canadian Maple Leaf, the South African Krugerrand, and the British Britannia coins. In addition, these coins and certain bullion bars are actually recognized by the Internal Revenue Service (IRS) making them a wise investment. How can you figure out the correct premium rate?  The formula to calculate the premium includes subtracting the spot price from our quoted price and dividing it by the spot price. After that, multiply the answer by 100 and you’ll have your premium percentage. You should strive to buy gold bullion as close to the current spot price as possible. Or only go over it by a few percent.   The economic trends will often cause the spot price to alter so pay attention to it.  Where is the best place to store my gold? Since gold is such a fragile metal, it needs to be taken care of properly. For a cheaper storage idea, you can buy a safety deposit box at a private depositary. If you ever need a coin for financial reasons, it’s easy to retrieve. Make sure that you have knowledge about gold investment. This is one way for you to make sure you won’t get ripped off when dealing with gold buyers and sellers. Images: Main  Eric Golub   Coins  Anthony Joh