Last Updated on January 14, 2023 by Ben
What is the guarded way to buy Gold? Is it through a company, or should you buy it from an individual? What about buying jewelry, coins, or bars that are already made and certified by a reputable dealer? All of these courses of action have their pros and cons.
The advantage of purchasing this type of investment product from a trustworthy company is that they will attend to all the specifics for you – including storage, insurance, and shipping if needed.
Table of Contents
- Does Buying Gold Make Sense for You?
- Important Questions to Ask Before Buying Gold
- Tips for Buying Gold
- Only Physical Gold and Silver
- It Must Be Under Your Direct and Unencumbered Ownership
- Only the Most Liquid Coins and Bars
- Build Up Liquid Stocks
- Don’t Use Credit; Buy with Savings
- Store Some Coins Near You
- Store Some of Your Gold in a Safe Jurisdiction
- Always Store Outside the Banking System
- Be Compliant with All Laws When Buying Gold
- Only Invest Money You Don’t Need for a Few Years
- What You Need to Know About Buying Gold Online
- Staying Vigilant and Avoiding Online Gold Scams
Does Buying Gold Make Sense for You?
Gold should be a principal part of a diversified investment portfolio. When the price of paper investments like stocks and bonds go down, Gold’s price goes up. Gold is worth considering as an investment because it has always kept its value over time. Gold, for example, has served as protection against inflation and the erosion of major currencies.
Important Questions to Ask Before Buying Gold
When Should You Buy Gold?
If you invest in Gold, then you can buy it low and sell it high. It is best to research the type of Gold before you buy it. When the price goes down, this may be a good time to buy.
Some people buy Gold. Gold does well when the economy is bad. Gold is a hard asset, so it helps you in times of inflation too. If you bought Gold in 1971, it would have been $35 per ounce, but by 1974 it was $180 per ounce, which was good for you because now your money is worth more.
There are two main causes people buy Gold. Some buy it as an investment. Others buy it for protection against a bad economy. If you own Gold, and the economy gets worse, then you will never be broke, even if your country’s economy collapses. You can buy a gold bar to store at home or in your bank account.
What Type of Gold Should You Buy?
There are many ways to buy Gold. Some people prefer to invest in a gold-focused mutual fund or exchange-traded fund, which is like a retirement account that holds Gold. There are also some companies that allow you to buy Gold for your future retirement account, but these have different rules. If you want more information, research ” Purchases of Gold may be made in a variety of ways, including the following:
- Gold coins
- Gold jewelry
- Gold mining stocks
What Outside Factors Can Affect the Price of My Gold Investment?
The current rate of Gold is called the “spot price.” It changes a lot. The spot price reflects what traders in the world’s markets are willing to pay for Gold right now. Some things can change the price of Gold: war, the central bank, supply and demand, and how big transactions are. When you buy Gold, you will pay a higher price. And when you sell it back to someone else later, then they will pay exactly what it was before.
- Supply and demand
- Country of origin
- Oil prices
Do You Have to Pay Taxes When You Buy Gold?
In his book, “How to Buy and Sell Gold and Silver Privately,” internet seller Doyle Shuler explains many of the complications surrounding taxation and buying Gold. Some states charge sales tax for Gold, while others do not.
Many gold buyers are reproving the U.S. government and do not want to have their purchases noted to the IRS. A way to help keep you off the grid is by paying cash for your purchase. By law, dealers of precious metals are required to tell the IRS when they sell something worth more than $10,000. They only report the amount spent on each transaction and not what was bought or who bought it. Shuler endorses paying with a bank wire or check if you are buying more than $10,000 worth of Gold in cash. Banks do not report to the IRS, and so they will not know how much you bought.
I’m Ready to Buy Gold. What Should I Do Next?
Gold is sold in bars or coins. Buy Gold online or from businesses that sell Gold. Gold is sold in different forms, so make sure you know what you want before you buy it.
Check current gold spot prices
When you want to invest in Gold, it is a good idea to follow the price of Gold for some time so that you can see if it is a good time to buy. You don’t want to buy when the price is high, so you should wait until there are lower prices. Some coins are worth more than just the metal inside. This is because they are rare and special, with their own value. It’s not easy to know when a coin is worth more, but it’s important to be careful of anyone who says that they don’t charge an extra price for these coins.
Shop around for dealers if you want to buy Gold. You can find out the spot price and then make sure that they are charging you a fair price. You should expect to pay 5% – 8% more than the spot price.
Take some time to research gold dealers to find a fair price. When you buy Gold, do not buy it online through a bidding site because that will cost more than the coin is worth. Here are some things to examine when you’re looking for a dealer:
- Dealer buyback policies
Consider storage options
For storing your precious metals, you can use a bank safety deposit box. But some people don’t trust banks. They might want to buy a safe for their Gold and silver at home. It will cost more money, but they won’t have to go to the bank.
Remember that when you buy home insurance, it might not cover the Gold in your house. You may wish to find a safe place for your Gold.
Tips for Buying Gold
Only Physical Gold and Silver
In order to accurately understand Gold and silver, it is important to recognize their economic significance. Gold has been used as currency for 5,000 years and is backed by paper money when the United States was on a gold-based economy. The use of paper money started in 1971 when the country transitioned to an alternate system that isn’t based on Gold.
Now that the world’s money is not backed by government-held gold, people want to buy money. The paper market for Gold has grown very big as people seek to buy money that is backed by physical commodities. This is easy to see with the commodity exchange market, where they have over 500 paper claims for each ounce of physical Gold that is available.
A big feature in the gold market is that so many people believe they own Gold, but those who actually want to claim the money are quickly finding out that there isn’t enough physical supply. So when you buy Gold as an insurance policy against a currency collapse, be sure it’s physically yours.
It Must Be Under Your Direct and Unencumbered Ownership
Gold is typically believed to be a safe investment because you can hold it in your hands.
This is important to understand. And this is true for the average person who doesn’t have much money to invest in Gold.
If you are in a condition where you might need to use your Gold for money, then buy small coins that are easy to take with you. You should store them close by so that they will be easy to access in case of a crisis.
Gold is an investment with many benefits but also potential drawbacks. If you are considering allocating a part of your wealth to Gold, go to countries where private property has extraterritorial legal rights. The best places to find precious physical metals are Switzerland and Liechtenstein. These countries are outside the traditional banking system so that the metals can be stored there.
Only the Most Liquid Coins and Bars
You want to sell Gold for as much money as you can. The main rule is to invest in coins that are legal tender. Make sure you invest in coins like the Maple Leaf, Austrian Philharmonic, or Australian Nugget. Money is important. You need it to buy things. So you should carry around a small amount of money in case something bad happens, like a crisis. It is best to have a legal tender and not pay too much for it because people can’t buy as much with the same money.
For example, let’s say you buy a maple leaf—the coin from the Canadian mint. When you buy, the price of a physical ounce of Gold should be as close as viable to the paper spot price of Gold. That is always how you calculate the value of an ounce of Gold.
Then, the dealer has to pay for your coins. They have to pay a mint fee that is paid to get your coins physically made. Then they will charge you another fee for all of the work they have done before you can get them in person.
Build Up Liquid Stocks
Investing in physical gold can protect your money, build savings over a longer period of time, and still potentially grow to provide tremendous value. For example, $100,000 invested in 1970 is worth about $2 million today because Gold has increased by 1800%. You would have even better results if you started investing with an ounce of Gold before 2004.
You have to understand what you are doing if you are going to buy Gold. That means that you need to have an investment horizon. You can’t use it as your trading vehicle. Instead, make sure that when you buy Gold, you put it away and store it as a way of protecting yourself from inflation or other things like that.
One day, you will have to pay back your debt. In 2008, the world had 140 trillion of credit. Today, we are positioned on almost 258 trillion of credit. That is a lot of money! Everything has an end, and this debt that we have seen for the last 50 years will also end.
Don’t Use Credit; Buy with Savings
If you want to buy Gold, you need to make sure that you have saved it first. This is the backbone of a fine economy. The current system depends on debit, credit, and utilization – the exact opposite of a healthy economy. Do not use bad habits to buy the antidote for this system.
If you buy Gold, use your savings and put it on the side. Do not spend money on credit to buy Gold. You never realize what the market is doing and may have to pay back your credit before gold prices rise. You need to save money, so you have more later. You can’t be spending all of your money today, or you will not have it when you are older.
Store Some Coins Near You
As I mentioned prior, you should always have an entry to some gold. You can put it in a locker at home or bury it outside – whatever you desire – make sure you can discover it. The key is to have direct entry to your Gold if something happens.
However, you should not store all of your Gold at home; only what you want to have available in a crisis. You should have insurance outside the country. The United States is a good example. They took Gold from people in 1933 under Franklin Roosevelt. Other countries did this, like Italy under Mussolini, Germany under Hitler, and the Soviet Union under Stalin.
Switzerland was the last country to stop using Gold for their money. They had a currency that could be exchanged for Gold even when there is a war. Politicians cannot take your Gold away in Switzerland.
If you have $50,000 or more to invest in Gold, then store it in a safe place. If you have smaller than that amount of money to invest, keep it nearby.
Store Some of Your Gold in a Safe Jurisdiction
Because of the matters talked about above, you should store some of your Gold in a safe place. The power of politics is limited in that country, so it is a good place to put it.
Switzerland is safer than other countries because they have seven presidents and a decentralized government. The states and the municipalities can make their own rules, which means that Switzerland is safer than other countries.
The Swiss government is based on the principle of subsidiarity. If a municipality can’t solve an issue on its own and needs help from the state, it can call on the state. But the other way around never works – it has to be from the upside-down.
A centralized institution with one president for 320 million Americans can make the rules from the top. This means that they can ignore people because they do not have any power.
Always Store Outside the Banking System
Physical gold is the remedy to the current banking system. The current banking system is positioned on credit, paper, and computer digits. Many people think that there will be a huge financial crisis in the future due to this system. If you decide to buy physical Gold, it’s best to keep it outside of this banking system.
Property rights in the banking system are not permanent. Banks have taken people’s money and Gold in the past, which means you can never be sure if they will take your money too. So it is better to get out of the banking system now.
Some people might advise you to have a safe deposit box, but most of the time, they are not insured. Besides, banks were closed during hard crises in the past, and they did not have as much Gold as they claimed to have.
Be Compliant with All Laws When Buying Gold
Whenever you can, buy a few gold coins. Gold costs a lot of money, and most people will not be able to buy a lot at one time. It is good if you do it in small amounts because you can buy them on the internet.
You can buy small denominations (small amounts) of money without giving your name. This is legal and makes you feel more secure. The average person has an advantage in buying small because they don’t have to give their name or any personal information.
There are laws that say how much physical Gold you can buy. If you want to buy more than this, make sure that it is declared. If you are going to buy Gold, there are two motivations that you need. You need to want to hide something because you believe the government will never find it. But if they do find it, then you should want them not to know what it is that you hid.
Only Invest Money You Don’t Need for a Few Years
We don’t know if the system will crash. Some people say that it might happen in the next six months. But you do not need to believe them. They are wrong, so you should not speculate on this.
You shouldn’t invest money that you will need for the next five years. You might need it. Anything could happen in five years, so be careful. In 2020, we learned that anything could happen in just five months. So while you think Gold will cost more in five years, it’s hard to know what will happen now.
If you want a good return, you will need to wait at least five years. If the system crashes before then, you’ll be okay. But don’t use the money that you need in three, six, or even nine months because we don’t know what the price will do in the short term.
As, and it can be hard to tell which ones you can use. IRAs also have a lot of rules about what transactions you can only do with them and which ones you cannot. The information on IRAs is hard to understand. With this in mind, we place together a list of companies that make the most information about IRAs easily accessible. All of these companies offer some educational resources, but not all of them have the same amount.
Fair Marketing Tactics
Many companies that sell precious metals and offer Silver IRA custodial services create unsupported claims about “guaranteed” profits. Many also charge their websites with alarming headlines about impending economic disasters. Some companies try to trick or scare seniors into investing in their company without thinking about it first.
You should look at companies that have a history of service and a good reputation in their communities. It is important to remove companies from your record that had unclear origins or that had accepted negative reviews from reputable news organizations.
What You Need to Know About Buying Gold Online
Safe and Secure Ways To Buy Gold Online
Through an Entity Selling Physical Bullion
Dealers like APMEX, Provident Metals, and JM Bullion are gold retailers. Online dealers like these offer competitive prices, safe shipping, and fast payment processing to make sure you get your order right away. These companies will also be clear about the price of Gold and how much they charge customers.
Investment in Crypto Backed By Gold
Cryptocurrencies are digital currencies that are worth more than regular money. GoldCoin is a type of crypto-backed by Gold. GoldCoin can be exchanged for an ounce of Gold, or it can be held to make more money in the future. Gold-backed cryptocurrencies are a type of cryptocurrency that uses Gold. Virtual currencies can be exciting, but they may not always have the same value as something with physical value. Gold-backed cryptocurrencies offer the best of both worlds – investing in both virtual and physical currencies while still having protection from an investment in gold bullion.
Purchasing Gold ETFs and Futures
An investor can also buy Gold by investing in futures and ETFs. It can get complicated, but these are good ways to invest in Gold without actually having to buy the physical Gold. This is much more effortless than buying physical Gold because it does not take up a lot of space.
Staying Vigilant and Avoiding Online Gold Scams
One of the most important things for online shoppers to remember is the telltale signs of a scam. This is especially important when buying physical gold bullion.
Buyers should be careful of retailers who offer confusing shipping options like delayed printing or sending items to a warehouse. While some of this strategy is legitimate, they’re also an easy way to sell gold products that might not actually exist and endure hidden from scrutiny about their quality.
If you’re worried about buying a fake gold coin, you should buy one that is certified or graded. That way, you will know for sure.
Gold is a low-risk investment, even during times of financial troubles. Gold has been reliable in the past and will likely continue to be so for future investments. You can rest assured that your money won’t disappear if you invest it now!
Precious metals are not as glamorous or profitable as other branches of the market, but you can be certain of them.