One of the strongest benefits of buying physical gold is its tangibility. Gold bars, coins and rounds held in a person’s hand are a unique investment. They cannot be destroyed by the natural elements and cannot be hacked or digitally changed (like some investments in the virtual world). Gold has been an excellent hedge against inflation in the past as its price tends to rise as the cost of living rises.
In the last 50 years, investors have seen gold prices rise and stock markets slump in the years of high inflation. This is because gold tends to be priced in these currency units when fiat currency loses its purchasing power due to inflation and therefore arises along with everything else. In addition, gold is seen as a good store of value, so people can be encouraged to buy gold if they think their national currency is losing value. Buying physical gold bars online is a fairly simple process.
A common way to buy gold bars is through licensed retailers online. Search bullion products on reputable retail websites such as the American Precious Metals Exchange (APMEX), JM Bullion, and Wholesale Coins Direct. Select the gold bars you want to buy by weight, quantity and price. One of the benefits of investing in physical gold is that if you need to redeem it quickly, you can.
However, gold coins and bars are often sold at a premium and bought at a discount, so you may not get the market price if you need to sell. Individuals who purchase gold bars as an investment should only purchase an ingot that bears the name of its manufacturer, its weight, and its purity, which is usually expressed as 99.99% on the face. From an investment perspective, investors looking to add the physical product that tracks the price of gold may want to avoid gold coins. You can buy rare gold coins, but this is the collector’s world that most investors should avoid.
Buying gold bullion requires no special knowledge other than understanding the day’s spot price. Gold bar buyers should consider the ease with which they can liquidate the bars as part of the buying process. That’s why it’s very satisfying and solid to invest in gold coins and want to buy them. If you are buying gold coins from individuals or from others you are not sure about, have their authenticity verified first.
For this reason, simple gold bars are typically a popular choice among investors looking for gold as a safe investment. Physical possession of gold involves a number of unique costs, including storage and insurance costs, as well as transaction fees and surcharges associated with buying and selling the goods. Conversely, given the tiny size of -gram gold bars, investors sometimes save up to buying bars of a larger size. An ounce of gold can buy a beautiful suit today, just like hundreds of years ago and even thousands of years ago (a Roman toga).
With the ease of investing virtually, some wonder why people bother buying gold online and storing physical gold bars. If you decide to buy gold coins, it’s best to get them from a reputable dealer or financial institution. For example, if you invest in gold mining companies, the stock price can reflect the company’s financial health and market position more than the price of gold. GLD shares will replicate exposure to gold prices, minus the cost of storing the gold and trading GLD shares.
The portability and simplicity of gold storage (if they’re willing to do so) is a third reason people often buy physical gold.