In the previous blog post, we discussed the various reasons for investing in gold coins, which coins are the best buys for you and popular gold coin options. In this post, we’ll continue to guide you through the other essential factors to consider when buying gold coins for the first time.
Where to Buy Gold Coins from
There are several dealers, brokerage houses and banks from where you can make your first purchase. You can also buy gold coins online as there are numerous resources available. Make sure to choose a company that’s reputable and reliable. Don’t hesitate to ask questions you may have before you settle on a dealer. Inquire how long they’ve been in business, which investment activities they specialize in, their customer policies, how they address customer queries, their license statuses, etc.
Whether you buy from a local dealer or online company, it’s important to check out the company profile, its rating, and the reviews/complaints. If there’s a consistent record of complaints, then that’s a bad sign, especially if there’s no effort from the company to address it. Also, if there’s a very high rating of the company but a lot of complaints lodged against it, then this could be a warning sign that shouldn’t be ignored.
To keep your first purchase safe, select a local dealer or online company that has a great track record of at least 10 years or more.
Dealers on TV and eBay are another option. With dealers/companies who advertise on TV, their products are usually much more expensive with expensive payment plans that charge interest. On eBay, although shipping is free, more risk is incurred as you’d be buying from private parties. Both of these options aren’t a good fit for first time buyers.
Local Dealer Vs Online Sellers of Gold Coins
With online sellers, you’ll get better pricing (even after including credit card/wire fees, shipping, and insurance) and more choices than local stores and firms. However, you’re likely to face a common risk of paying upfront and trusting your online dealer to deliver the same gold coin that you purchased.
On the other hand, buying from a local dealer offers greater privacy, immediate possession of your gold and no shipping and insurance charges. But there are also some disadvantages involved such as limited choices and higher premium rates.
Compare the company profiles, prices, other expenses, taxation, various policies and modes of payment. Finalize your choice of dealer on the grounds of your needs and convenience.
Dos and Don’ts of Buying Gold Coins
- Research as much as possible to find the current market news and trends. Read financial publications, analysts’ reports, industry news, reputed blogs based on gold investment.
- Buy gold coins according to your objectives.
- Determine your budget and the weight of the coins.
- Choose your gold source wisely. Buy from a reputed dealer with a guaranteed buyback policy.
- Determine where you’ll store your coins. You can either store it in a vault in your home or in some other location, if you have home security issues.
- Don’t buy from just any dealer without verifying its authenticity and reputation before purchasing.
- Don’t end up purchasing rare coins or being tempted to invest in other gold options if they don’t serve your purpose.
- Don’t trust dealers that offer free storage.
This guide will help you start planning for your first gold ownership safely and securely. A lot of first time buyers are concerned about the best time for purchasing gold coins. Instead of waiting for more favourable prices (never a certainty), you should invest in gold coins whenever you think you want to own it. Happy investing!