With the price of gold at historical highs and many investment advisors talking about the importance of owning gold, more people than ever have wanted to start buying gold themselves. You may be one of these people, but like them, you too want to know how to get started buying gold. Although there are several ways to begin buying gold, some of them are better than others, especially for a beginning gold investor.
Buying gold as a futures contract
There are several ways to buy gold. One way is to buy gold as a futures contract on the commodity exchange. You are buying the option to purchase a certain amount of gold in the future. This type of investment can be volatile, and you can easily lose money. The other problem is that it is only a temporary purchase of gold, because these contracts are only for a few months.
Buying collectible gold coins
Gold coins that are rare can be a great investment. The down side to this is you need to be more than a gold investor, but also a coin collector. Collectible gold coins have a certain minimum value because of their gold content. There is also an additional value on top of the gold content that is based upon how collectible it is. The value can go up and down, so it is necessary to understand gold coin collecting to make sure you are getting a good deal on a coin purchase.
Buying gold bullion
Bullion refers to gold coins or bars that are specifically made to keep as an investment. They are not collectible, but are purchased only as a tangible asset. There is little if any haggling over price, because dealers buy and sell bullion at market prices, taking only a small transaction fee for their service. This is the easiest and best way to buy gold for a novice. In fact, many experienced gold investors buy and sell most of their gold in this fashion.
If you decide to buy gold, it is only a matter of looking for a gold dealer to do business with. There are several dealers online to buy from, but for the first time buyer, it is best to buy from a dealer with a physical store. You can ask questions at the dealer’s store, if you have any. One example of this type of store can be found at the Houston Numismatic Exchange.
Interesting! I hope someday I will be rich enough to actually be able to afford to buy gold. Haha!
We can buy gold but only in the form of jewelries.. sana next time we can afford to buy it in bars na..
I never thought about buying gold outright like that. What a cool thing to do, though! Now I know how to go about it.
Really interesting post! I remember my grandparents talking about investing in gold years ago and now with prices rising it does seem like quite a sensible idea.
Wow, I have never thought about buying gold. I didn’t know there were so many ways to do it, very interesting read.
this is very interesting as this is a topic i know nothing about! thankyou 🙂
Wow this is interesting. I have never thought of buying gold, or anything like this.Very neat to know!!
That’s not something i had considered before, but now I may because I’m armed with all the needed knowledge. What a great, informative piece.
Thanks Liz Mays
I’m not a big fan of gold (the color I guess, white gold is okay) so Ive never thought about this!
Oh, I like white gold too!
These are great tips for someone like me. I know next to nothing about gold.
Thanks Jenny!
Gold buying and selling is a good business. Beware of fake golds though, they are everywhere.
Great tips nonetheless.
Yes, fakes are everywhere.
This is really neat, I didn’t know anything about buying gold. I’d love to be able to afford some as an investment one day!
Thanks Cindy!
These are great tips. I hope I will be able to invest in gold in the future.
Thanks Elizabeth!
I haven’t invested in gold, but now I am thinking that I should based on this informative article.
Thanks Becky!
I have an uncle who used to invest in gold coins, but I wouldn’t know where to start — until now!
Gold are what’s in these days.