Like all investment types, however, there are smarter ways to buy gold than others. While you can easily purchase gold bars and coins online, for example, there are some mistakes you should know about in advance. By understanding these potential missteps, you can better improve your chances of buying the right type of gold in the right amount — and reap the rewards a gold investment is known to provide.
Buying gold bars and coins online? Avoid these mistakes
While it’s easy to buy gold bars and coins from the comfort of your home, it’s also easy to make some simple mistakes. It helps, then, to know what to look for. Specifically, you’ll want to avoid:
Not shopping around
The days of buying gold from a jewelry store or pawnshop are over. While you can still go that route if you choose, you can easily buy gold bars and coins online, instead. But with so many options to choose from, you shouldn’t bite at the first one to come up in a Google search.
Instead, take the time to shop around to see which sellers may be better for you. You can use gold dealers like American Hartford Gold, JM Bullion and others. But you could also use some others that you may not have even known sold gold bars, like Costco and Walmart.
Do your research and review all your options before buying in. It could be the difference between getting a valuable gold investment and not.
While gold investing can be safe for many, the shiny metal also has a reputation for attracting untrustworthy sellers and dealers. Accordingly, you’ll want to read reviews online to make sure that the seller you’re using is one that you can trust.
Speak to other gold buyers and investors you may know to gauge their experiences with sellers. Check out their ratings with the Better Business Bureau, too. Even a simple internet search can deliver results — both negative and positive — that could provide valuable insight for sellers under consideration.
Not knowing the price
The price of gold today, November 9, is $1,946.57 per ounce. But that changes throughout the day, weekly and monthly. It was $2,006.33 per ounce on October 27 and $2,052.04 at the beginning of May.
While price fluctuations are inevitable, you should know what gold is priced at when you buy in — not what it was in the recent past or can rise or drop to in the future. Without this knowledge, you could wind up massively overpaying for your gold bars and coins.
A final consideration
Remember, as beneficial as a gold investment can be, it’s not an income-producing asset like more volatile stocks and bonds can be. As such, most experts recommend limiting your gold investment to 10% or less of your portfolio. By doing so, and by shopping around, reading reviews and familiarizing yourself with the current price of gold, you’ll greatly enhance your ability to effectively buy gold bars and coins online today.