Gold is, and always has been a firm favourite for investors, and with so many online gold dealers, one must be careful when making online purchases. While a financial transaction can take seconds, the buyer does not yet have possession of the commodity, and for this reason, buying gold online should only be done with a trusted source. If you are thinking of adding to your portfolio by acquiring a few ounces of gold bullion, here are a few things to watch out for.
Avoid Certain Online Platforms
While it might be fine to purchase household items or car parts from an eBay seller, something as valuable as gold should be reserved for a reputable gold bullion dealer. Anyone can set up a seller’s account, whereas a reputable gold bullion broker would have offices, and they themselves would recommend that you visit their offices to physically take possession of your gold. It isn’t just that you might not receive the gold, it could be less pure than advertised if you buy from a private seller.
Look for Purity
Gold comes in 14, 18, 22 and 24K, and for investment purposes, you should stick to the purest form, which is 24k. Jewellery would likely be 14 or 18k, as the purest gold can be a little too malleable. You can buy gold bars of all sizes and by dealing with an established gold bullion dealer, you can be sure of the very best quality. Why not visit City Gold Bullion where you can discuss your needs with a local expert.
Consider Buying Gold Coins
Gold coins are easier to sell and there are two main coins that are recommended, the American Eagle and the Canadian Maple Leaf, as they are globally recognized and hold their price. If you are planning to acquire a lot of gold, then bars are your best bet. They come in all sizes, right up to a KG, and by dealing with a reputable online gold bullion merchant, you can be sure that everything is above board. There is some more useful advice on buying or selling gold, which is recommended reading for every gold investor.
The Importance of a Physical Address
The gold dealer might have an impressive website, yet this means nothing if they do not have a registered office, a place where you can actually take possession of the gold. Once you have made that first transaction with a visit to their premises, you can buy online with a high degree of confidence, but the first purchase should involve a visit to their business premises.
The Spot Price
Gold prices can go up and down, and by keeping your eye on the spot price, you can purchase at a favorable rate and hopefully, your investment will pay good long-term dividends.
Like anything else, buying gold online does have an element of risk to it, and by making your first purchase that the broker’s offices, you can be confident that any further online purchases are risk-free.
If you would like to compare gold spot prices at any given time, an online search will bring up a list of local gold bullion merchants and providing they meet the above requirements, your investment should be safe.