Hey! Good to see you again. Glad you’re back! In this article, we’re going to discuss the best place to buy gold. In case you’re an absolute beginner here, know that there are a variety of different forms in which we can buy our gold. You may know the term “gold bullion.” This refers to a refined form of gold that is commonly used for exchange. Bullion comes in a couple of different forms: gold bars and gold coins. We’ll discuss where to buy gold bars and where to buy gold coins in a minute. You may have also heard of the term “scrap gold.” This refers to the type of gold that you’ll hand over to your friendly neighborhood cash for gold (or gold for cash, if you prefer) joint. We’ll discuss these establishments and types of transactions in another article. Another popular form of gold that you may have heard of is called gold jewelry. Check out our article, Should I Buy Gold Jewelry instead? for more information on that subject. Okay now, let’s discuss the two main places where to buy gold bullion.
Your LCS (Local Coin Shop)
Depending on where you live, you may or may not have one of these establishments near you. Now don’t confuse your LCS with the aforementioned “cash for gold dealer.” A cash for gold dealer typically does not sell gold; they merely take your gold and pay you a little as possible for it (again, more on that in the Cash for Gold article). Your LCS will have a variety of coins and bars to choose from and will often have plenty of numismatics (collectible coins) and silver bars and coins as well.
The Gold Seller – Online
By far, the most popular place to purchase gold bullion these days is online, and it seems like there are more and more sites from which to choose daily. As far as convenience goes, you can’t beat the online dealer. A quick web search will bring you thousands of results, so you might want to narrow your search to something like “reputable online gold dealers.” A dealer with an excellent reputation is a great place to start. Why? Well, think about it. If you plan on buying online, you plan on sending a large amount of money via wire or cashier’s check – most dealers don’t accept plastic – to someone you’ve never met before. Yes, you should be a bit wary. Just know that this is how the business works and know that you have to ensure that you’re dealing with someone trustworthy. [If you shoot me a message, I’ll let you know some of the online dealers with whom I’ve worked; and some ones you might want to steer clear of.] Online dealers will usually have a larger selection from which to choose than your LCS, mainly because they’re probably doing much more business. For this reason, and for the fact that they’ll have a lower overhead, the online dealer’s prices will most likely be a bit lower. Your online dealer will have specific instructions for you when it comes to payment and shipping. Make sure you follow them closely. Also, when you make your purchase, the price quoted will be locked in at that time and you will be required to make the purchase as agreed to at that time. If the gold price goes up while you are arranging payment and awaiting shipment, good for you! If the price goes down during that time, you’re still required to pay the quoted amount, but don’t worry, the price is going to go up – a lot – in the future (this sentence written in July 2013).
The next time you’re in Abu Dhabi, or Boca Raton, or in an airport or mall in Germany, Switzerland, Austria or Germany and you’ve got a little jones on for some gold. Just walk up to one of those golden machines, slide your card, and a tiny gold bar will be yours in an instant. Yes, that’s right – gold vending machines; and they’ve been around for a couple of years now.
Think about that for a minute… gold vending machines… Why? Why is demand for gold growing strongly year-by-year? Why are countries like China importing as much gold as much gold as they can get their hands on? Why are you reading articles like this one? Mmm?
Also… Security is something you’ll definitely want to consider when purchasing gold either online or in person. We’ll discuss this at length soon.