Beginners Guide in Buying Gold Bullion

If you are in the market and looking to Buy gold bullion it can be a daunting task for the uninitiated. Like buying a car, there are many options available to the buyer. The same principles will apply to buying a car. Research is key to a successful entrance into this market.

What is gold bullion?  Bullion consists of many products. All of these products are precious metals, usually gold and silver. Bullion consists of bullion bars, bullion rounds, and bullion coins. The bullion is of high purity, normally .995 to .999% pure, and is assessed by weight.

Where do I buy bullion?

Sovereign mints and private refiners sell bullion to distributors. They are the wholesalers in the industry who sell to the distributors. If you buy a car, you cannot purchase your car from the factory. You will buy from the dealership or buy it privately. The same applies to buying bullion.

The mints and the refineries deliver the bullion to the dealerships who sell the bullion to the public. You can also buy bullion through some pawnshops or gold buyers. It is recommend you purchase from bullion dealers. Most Bullion dealers have bullion available through online platforms for a variety of investors.

How Long Should I Hold Bullion Before Selling? 

When buying Bullion you should know that it is not a short-term investment. Most analysts recommend that you hold the bullion for at least 3 to 10 years before selling.

What is The Minimum and Maximum Investment Required?

The most common size Coins and bars are minted is 1 oz. Though many different sizes are available. You can buy, for instance, 1 gram and 1 kg gold bars, as well as 1/10 oz gold coins.

Bullion coins

The most sought after coins are:

  • Perth Mint Kangaroo’s
  • Canadian Maple Leaf
  • Austrian Philharmonic
  • American Gold Eagle
  • Brittania

Prices of the coins change daily, depending on the current price of gold and silver on that day in the world markets. 

Investigate and Avoid the Following:

Make sure you shop around. It is important to know the spot price and the mark up value of the product that you want to buy. Enter the name of the product into an online search engine to compare prices from other bullion dealers. 

Insist on complete disclosures and to make is a smooth transaction. Reputable bullion dealers will advise you of payment methods, different products they sell and storage options if you want storage.

Consider what extra costs there will be when buying gold bullion. It may include insurance, safekeeping, and storage costs of your bullion. Calculate these costs before making your investment decision.

Do not succumb to pressure sales techniques buy whatever you are comfortable. There is always plenty of bullion available in all different sizes suitable to your investment needs. If you don’t feel comfortable with the consultant you are dealing with you can always try another bullion dealer and see if you relate to them better.

Conclusion

When you go to buy gold bullion Research is the key to successful investment in bullion. The words of Dan Zarella is an eye-opener: “Marketing without data is like driving with your eyes closed.”