If you are thinking buying physical gold it’s important to have an understanding about your investment. Whether you are a first-time buyer, or a seasoned investor, or someone who has dabbled in collecting gold, it’s important to understand the basics and the factors which need to be taken into consideration before buying. In this post we’ll introduce you to gold bullion; the key terms used when talking about physical gold, we’ll talk about the reasons why investors choose to buy physical gold and lastly, how to go about actually purchasing a gold bar or coin.
Firstly, what is physical gold?
Gold bullion is physical gold which refers to gold that’s in the form of bars or ingots or coins. This is in contrast to gold that is used to make jewellery. Gold bullion is typically used as a way to invest in the precious metal, as it is a tangible asset that is easily traded.
Investing in gold
Investment gold refers to purchasing gold as a way to protect against inflation, or as a hedge against market volatility. It is often seen as a safe haven investment, as the value of gold tends to remain stable even when other assets are losing value. Some people choose to invest in physical gold, such as gold coins or bars, while others may invest in gold mining companies or Exchange-traded funds (EFTs) that track the price of gold.
Important things to do, before buying physical gold.
1. Research the market: Before making a purchase, it is important to understand the current market conditions and how they affect the price of gold. This will help you make an informed decision and avoid overpaying for your investment
2. Choose a reputable dealer, like Hatton Garden Metals, who has 1000’s of 5-star reviews and clearly shows the premiums they are charging for gold. Hatton Garden Metals also displays their buy-back price for the gold bar or coin, allowing you to see your spread.
3. Consider the form of gold; Gold comes in many forms, including bars, coins and jewellery. Each form has its own advantage and disadvantages, so it’s important to consider which form is right for you.
4. Understanding Fees; When buying gold, you will likely be charged a number of fees, including the mark up on the price of gold and commission charged by the dealer. Hatton Garden Metals displays clear and transparent mark ups and every order come with free postage and a 10-month free secured storage offer.
5. Consider storage; If you are buying a large amount of gold you will need to consider where to store it. This can be a challenge, as gold is a valuable asset that needs to be protected. You may want to consider storing your gold in a secure location like a bank deposit box. Hatton Garden Metals offers FREE secured storage for 10 months. Your items are stored in their Grade 8 Vault, giving you piece of mind.
Finding the best gold dealers
Do your research! The best gold dealers are clear and transparent with their offerings. They will have a store premises in most likely London or Birmingham, the 2 main districts where gold trading takes place. Reputable companies will be tried and tested, meaning lots of reviews and also responses to reviews. Trusted companies will also have phonelines and people to speak to. Call Hatton Garden Metals today and we can help answer any more questions.