May 23, 2016

The fine print on GOLD buys

Buying GOLD is tricky

Kevin Barker, editor | 6:21 a.m. 23/5/16

Never risk a sizeable amount of capital in any one transaction. Find a dealer you like and buy monthly in increments, over time, and average out your dollar cost. Read the fine print on those contracts. Vendors who offer deep discounts usually make it up elsewhere.

Want to know about selling gold? Click here

You'll never get the spot price for physical gold. Dealers charge a premium on bullion, and in smaller quantities it's even higher. But you can offset this by loading up when prices are going down, and buying "light" when they're high. Over time your buying costs will average down.

But price isn't the most important factor when buying physical gold. Ancillary costs, such as shipping, storage, and order processing, can really add up.

What are the price points in grams or ounces?

Prices vary by quantity; the more you buy, the lower the dealer's margin. Buy what you can afford, don't overinvest!

Do they offer a discount for afiliates?

Some dealers offer discount programs for bulk buyers or resellers. Look into it.

Is there a minimum purchase?

That great price you found may be based on multiple ounces, putting the price above your budget.

How much to ship?

Ask if they deliver outside the U.S. It may be cheaper to store your monthly buy and take delivery once or twice per year. Ask about storage fees.

Is the package insured?

Don't risk losing it in the mail! Is there a fee for credit card purchases? Some dealers also take bitcoins and personal cheques.

Finally, make sure it's real gold. Look for an assayer's stamp certifying the gold grade. For larger bars compare it with the Good Delivery List.

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