If you are a smart investor, you should consider investing in physical gold as a part of a planned, diversified investment portfolio. Gold is a universal asset, and the demand always continues to soar, even when stocks, bonds and mutual funds are not performing as expected. You can buy gold in form of coins, bars, bullions, jewelry and rare coins. Except for rare coins, you would be paying the market price for physical gold on that given day. For those who have their doubts on how to invest in physical gold, here are some aspects worth knowing.
Knowing gold value and purity
Before we discuss how you should buy physical gold, let’s talk of purity and value. The purity of gold is measured in karat. In the market, the best physical gold you can buy is 24k. Most coins, bars and bullions are made of 24k gold. This gold is too brittle to make jewelry, and therefore, for jewelry, only 22k, 18k, or 14k gold is used. If you are investing in physical gold for the sake of investment, we recommend that you consider 18k gold jewelry at the very least.
Finding a seller
Never ever buy your gold from a random pawn store. Keep in mind that gold is sold at the market price, and that can fluctuate. You want a seller who is honest about the product and is willing to deal at the actual price. Finding the right gold dealer is critical, and you want to look at two very important aspects – dealer experience and reputation. You want to be absolutely sure of the margin they are making, which is not typically over 2% for the best dealers. Also, ensure that the dealer deals in gold, silver and rare coins on a regular basis and is fair in its pricing. The same dealer should be willing to buy the gold back if need be, and they should be open about their pricing. A reliable gold seller should have a physical store, where you can visit and ask relevant questions.
When it comes to rare coins, keep in mind that the pricing of gold is not the only factor that matters. It has a lot to do with the rarity and uniqueness of the gold, so do your homework and make sure that you are not compromising on your investment for a small discount. Check online now to find more gold dealers near you!