They sometimes say savings accounts are as "secure as the Federal Reserve", but let me tell you, it's hard to beat gold. Buying gold and other precious metals is regarded by wise savers as a solution to the west's economic difficulties. Whilst bank interest rates are at an all-time low, the value of gold goes up all the time.
There are 3 main ways of investing in gold. You can try ETFs or Exchange-Traded Funds; there are gold stocks; and then you can buy gold bullion. Bullion is by far the best bet for beginners.
Bullion exists in two general types: ingots and coinage. I recommend you start off by buying gold coins. They are simpler to buy and easier to sell than gold bars. Plus, coins give you far greater flexibility when it comes to disposing of your gold. For example, if you wanted to sell a quarter of your gold holdings, it's obviously easier if you own twelve coins rather than one or two gold bars.
Do not spend a single penny before you make sure you can get the most advantageous deal available. Gold traders earn their profit from "the spread". This is the difference from when they buy for less than the market price and retail for more. This is subject to variation but often depends on the amount of gold, and the type of gold for sale. It can also depend on who the seller is.
Stay away from those gold vending machines. They have become common in malls and shopping centers all over the world and are aimed at investors who do not know what they are doing. No seasoned dealer would ever think of sourcing from a vending machine, and you shouldn't either.
Buying gold medals and coins is your best starting point. Coins made from gold can be separated into two main types: bullion and numismatic coinage. Bullion coins are very often minted only for people who want to invest, but numismatic coins were made as currency and usually have additional value in addition to their metal composition. How much bullion coins are worth is based on how much gold they contain plus a small margin of something like 5 percent to eight percent. This difference is generally referred to the "premium price". Typical investment gold coins include the British sovereign, American Eagle, Canadian Gold Maple Leaf, Austrian Philharmoniker and British Britannia.
Commemorative coins are usually sold on the indication that their value will rise over time. Sadly, this is usually not the outcome. The mint's original selling price for commemorative coins is nearly always significantly higher than the gold content. Commemorating events like Hitler's Birthday or The Centenary of Jimmy Raison's Hanging does not often add any value to the coin itself. This is the reason almost all experts warn against buying commemorative coins.
I would often advise novices to start by dealing exclusively in bullion coins and seek out those offering the least premium over the quoted spot price. The 1 oz. Krugerrand is the commonest and will always trades at the smallest premium over the gold spot price.
The cheapest location in the world to buy gold coins is Hong Kong. The Central Area of Hong Kong around Queen's Road is crammed with banks offering gold coins at amounts as little as 0.2% over the premium price. Needless to say, unless you are within walking distance, you would have to factor in air fares to see if a visit would be worthwhile. But if you are going anyway...
There are 3 main ways of investing in gold. You can try ETFs or Exchange-Traded Funds; there are gold stocks; and then you can buy gold bullion. Bullion is by far the best bet for beginners.
Bullion exists in two general types: ingots and coinage. I recommend you start off by buying gold coins. They are simpler to buy and easier to sell than gold bars. Plus, coins give you far greater flexibility when it comes to disposing of your gold. For example, if you wanted to sell a quarter of your gold holdings, it's obviously easier if you own twelve coins rather than one or two gold bars.
Do not spend a single penny before you make sure you can get the most advantageous deal available. Gold traders earn their profit from "the spread". This is the difference from when they buy for less than the market price and retail for more. This is subject to variation but often depends on the amount of gold, and the type of gold for sale. It can also depend on who the seller is.
Stay away from those gold vending machines. They have become common in malls and shopping centers all over the world and are aimed at investors who do not know what they are doing. No seasoned dealer would ever think of sourcing from a vending machine, and you shouldn't either.
Buying gold medals and coins is your best starting point. Coins made from gold can be separated into two main types: bullion and numismatic coinage. Bullion coins are very often minted only for people who want to invest, but numismatic coins were made as currency and usually have additional value in addition to their metal composition. How much bullion coins are worth is based on how much gold they contain plus a small margin of something like 5 percent to eight percent. This difference is generally referred to the "premium price". Typical investment gold coins include the British sovereign, American Eagle, Canadian Gold Maple Leaf, Austrian Philharmoniker and British Britannia.
Commemorative coins are usually sold on the indication that their value will rise over time. Sadly, this is usually not the outcome. The mint's original selling price for commemorative coins is nearly always significantly higher than the gold content. Commemorating events like Hitler's Birthday or The Centenary of Jimmy Raison's Hanging does not often add any value to the coin itself. This is the reason almost all experts warn against buying commemorative coins.
I would often advise novices to start by dealing exclusively in bullion coins and seek out those offering the least premium over the quoted spot price. The 1 oz. Krugerrand is the commonest and will always trades at the smallest premium over the gold spot price.
The cheapest location in the world to buy gold coins is Hong Kong. The Central Area of Hong Kong around Queen's Road is crammed with banks offering gold coins at amounts as little as 0.2% over the premium price. Needless to say, unless you are within walking distance, you would have to factor in air fares to see if a visit would be worthwhile. But if you are going anyway...
About the Author:
Being aware of the best place to buy gold can save you a lot of money. Aside from buying gold bullion, there are other ways to make money, including buy and selling scrap silver.
