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Gold bars stacked on a table

Looking for a New Investment? Consider Purchasing Gold

How to Buy Gold

There are numerous reasons why buying gold can be profitable. Investors often consider buying gold to be a safe investment and a good way to hedge one’s funds against inflation. Gold is a precious commodity and tends to hold up its value well over time.

However, some would-be investors in gold might not understand exactly how to buy gold bullion coins. There are a few steps that anyone should go through in order to get a good deal on gold, and buy gold securely.

The following are three of the main steps to go through in order to successfully know how to buy gold bullion coins or other gold investments.

Be Aware of Various Prices

If you want to buy gold directly (as gold coins for sale, for example), you’ll want to get started by looking for dealers. You can do this online or through local dealers. Gold will be selling for different amounts on different gold exchanges. You should check the exchanges to see what gold coins are selling for in order to find that best offers available.

Read Dealer Policies

Before you purchase gold from a dealer or exchange, you should look into the various policies that they use. You should look into factors like whether the dealer or exchange will be willing to take the gold back afterwards, or what kind of surcharges they add on to transactions.

Research Reputations of Sellers

The US Mint government site provides some helpful information on gold dealers in every state. You might want to explore this website to look into the reputation and history of individual dealers to decide if you’d like to buy from them before you make a purchase.

Consider Buying Through a Company, Mutual Fund, or a Gold Future

You don’t necessarily have to purchase gold directly to invest in gold. Another option is buying gold as an investment in the form of stocks, mutual funds, or futures.

If you choose to try buying gold as investment with stocks, you’ll need to do some research on companies that engage in the activity of gold mining. Buying gold stocks can sometimes help you save on the premium that you would have to pay by purchasing gold directly. However, you’ll also have to deal with the fact that your investment’s value is subject to the performance of the company in question and not just gold values overall.

One relatively risk-free way to make money from buying gold is by purchasing exchange-traded gold funds. These types of funds have a lot of liquidity so that you’ll readily be able to sell shares as you like down the road.

Those who already have some familiarity with futures trading might want to consider buying them. Gold futures can be purchased through various exchanges, such as the Chicago Mercantile Exchange. It might be a good idea to experiment with gold investing using some other methods before delving in to gold futures trading because of the complexity of the endeavor.