For eons, gold has been used as a visible sign of wealth as well as a way of storing value. In the past gold was used in a number of currencies all over the world but as time goes by this practice is becoming rare the most common use of gold today is as an investment vehicle.
Be it in gold rounds, gold bars or a variety of other types of gold bullion, consumption and exchange of this precious metal is currently at a higher rate than ever before. This is clearly depicted by the fact that value of the metal has never been higher than it has in recent years.
If you wish to invest in precious metals, gold to be precise, a few things exist which you must know before you start spending your hard earned money. The first of which is what to expect when it comes to the cost of buying gold, whether it is from a brick and mortar dealer or an online dealer.
All you have to do to find out the cost of gold is look for the current price its trading at on the open market- the spot price. The spot price is the price at which a commodity can be transacted or delivered on immediately. This is different from forward or futures contracts. The price of an ounce of gold right now is its spot price. Using the spot price, you should only get an idea of the cost of your gold because; no dealer in their right mind can sell gold for the same price as the spot price.
Instead, a premium is added by dealers over the gold spot value so as to cover for both the expenses and hopefully turn in some profit; after all, dealers of precious metals are in this business to make profit.
This implies that as an investor your goal is purchasing gold at a price close to its spot price as possible. So, how can you do this?
As mentioned before, it’s nearly impossible buying gold at a price equivalent to the spot value, but instead an investor you should try purchasing at a price close as possible to the spot value. For you to achieve this, you need to do a little bit of shopping around and compare the prices between both the online dealers and brick and mortar dealers.
As you would probably be expecting, not every dealer is going to sell even a similar piece of bullion at the same price. Even if you manage to save a few dollars here and there, you can be rest assured that the savings will quickly begin to add up.
By getting to shop around you will start to get a good idea as to the dealers offering customers good deals and the ones looking to take advantage of their customers. Of the few online dealers letting you buy gold bullion at the lowest possible prices, BullionVault stands out. With BullionVault, private investors all over the world can access professional bullion markets. You get to benefit from low buying, selling and storing costs for gold and silver. BullionVault is the largest online gold investment. Furthermore, it is endorsed by the World Gold Council. They take care of more than $2.2 billion for over 45,000 users.
The bars you buy get insured in a vault of your choice in London, Singapore, New York or Zurich. The insurance costs investors get to pay are very low as these are the most secure storage facilities for bullion in the world.
You are free to sell at any time without a penalty and on the next business day your money will be wired to you. It‘s also possible withdrawing your bars. BullionVault is fast and easy. In about 2 hours you can own any amount of physical bullion.
One way that investors use to get bullion under or even at the spot value is by purchasing from individual dealers in the secondhand market. This is possible eBay and other sites like it, but as expected this comes with its own fair share of risks.
If you honestly know what you are doing and feel safe about it, getting to buy from individual sellers is really not a bad practice. One of the chief rules that you need to remember is that the price which seems too good to be true usually is. What I mean is that if an individual is selling gold for a price lower than its spot value by hundreds of dollars, this should raise red flags.
Also, a large number of counterfeiters are around and they usually offer their gold at prices that are unbeatable in order to push their fake products at high speed. By the time you figure out that it was a scam they already would have made off with your money.
If you decide on buying from the secondhand market, another piece of advice is that buying of the gold should be by way confirmed e-wallets such as PayPal or MoneyBookers. By using these services, most times you can get your money back in event of a counterfeit product or a scam.
At the end of the day, it’s going to be very difficult buying gold for a price resembling its current spot value. It’s not easy to find a good deal in the secondhand market. A number of sites with a good reputation like BullionVault have paid close attention to the prices they offer in order for you to take advantage.
You need to be a shopper with good comparison when you buy bullion and if you do your fair share of research and stick to your guns you are likely to end up with a good deal. Gold never goes on sale unlike any other type of product and never will you see the buy one get one free type of sales so in order to end up with a good deal it will require due diligence. A number of dealers in precious metals are out there and finding one who can give you a good deal isn’t a difficult task as it may seem initially. If you are looking to get the most out of investing in precious metals, then BullionVault is your best bet.