Investors who wish to invest in precious metals can consider buying gold bars or coins rather than intangible investments like Exchange-traded Funds (ETFs). Coins like the American Gold Eagle or Canadian Maple Leaf are popular collectibles. Coins usually contain less gold than bars.
For instance, one ounce of an American Eagle coin contains only 91.67 percent gold. The coin weighs 1.1 pounds, with about one ounce of pure gold. The rest contains silver and copper.
Investing in high value gold coins is a great way to diversify your portfolio. The following are a few things you must do when investing in them.
Where To Get The Best Quality Gold Coins
You can purchase coins through dealers and individual sellers you trust. You must select a registered dealer if you buy coins on the internet. Whether you purchase your coins in person or via the internet, you wouldn’t want to spend your money on low-quality coins. While buying these at the bullion trader is considered the most affordable and best option, you can also buy them through jewellers, banks, or bullion dealers.
The following are a few ways you can invest in gold:
Reliable Online Retailers
Buying gold from an online retailer involves a little risk as you pay in advance and trust that the seller delivers the items you ordered. However, this isn’t an issue for established online retailers as you can safely buy gold and other commodities in digital and tangible form with all info about it right on your screen.
However, when choosing an online retailer, you must check the prices on the website together with shipping and insurance costs. A dealer who doesn’t provide prices isn’t necessarily bad, but it could mean they’d prefer you to contact them to allow them to make as many sales as they can. Therefore, you should give more weight to honest and reputed online dealers while investing in gold coins. Also, check the site’s reliability and delivery date before placing an order.
Buy From Jewellers
Generally speaking, local and large jewellery stores can offer pure coins. However, in this case, the price is much higher than the rates the bullion trader can suggest. Jewellers might charge a fair amount of markup costs to generate profits and keep themselves safe from fluctuating rates. Additionally, jewellers usually raise their sale rates after the price increases. However, they don’t lessen it when the rates drop. Jewellers who sell gold are not known for their high return rate compared to traders who trade in bullion.
Purchase From Bullion Traders
Bullion traders offer a price close to the current rate and markup fee. The business of bullion traders heavily depends on selling and buying in bulk. Therefore, they can work with smaller margins than banks or jewellers.
Banks For Gold Coins
Most banks offer coins of 24 karat purity but don’t buy these to return. The gold rates offered by banks are not just more than the market price but the highest when compared with bullion traders and jewellers.
But, physical ownership comes with several costs, including storage and insurance, markups, and transaction fees when buying and selling gold. There are processing fees and small lot charges for investors who purchase smaller amounts. Although these costs might not impact someone who wants to place a small amount of their investment portfolio in gold, they could be prohibitive for investors willing to risk their earnings.
No matter which method you choose for investment in gold coins, you’ll get genuine top-quality coins and have assets that will pass down through many generations and safeguard your portfolio from whatever the market and economy bring. Hence, it is safe to derive that investing in gold is a great way to increase your returns.