Buying Gold Online: A Step-By-Step Guide for Investors

What Happens When Venturing Beyond Your Local Coin Shop?

Bullion.Directory Quick-Read Guides and Articles
By Alice Walker
Investor Relations Manager at Bullion.Directory

With the digital revolution in full swing, buying gold online is no longer just an option — it can be an intelligent strategy, filled with almost endless choice and opportunities for price comparison.

Now, for the traditionalists among us, this may feel a little foreign. Worries of paying thousands of dollars to a website in a different state (or country) and then hoping your order will be delivered without a hitch are not any concern in your town or city’s local dealer. Move online and, well it’s going to be a worry…

But fear not! I’m here to be your compass and map as we navigate this terrain together.

Why We Love Buying Gold Bars and Coins Locally

The allure of gold bars and coins is no modern phenomenon — it’s a legacy that’s been passed down through millennia. What’s captivating is their tangibility — the substantial feel of a gold bar in your hand, or the artful craftsmanship of a gold coin as it catches the light.

It’s a wealth you can physically touch and admire – and when you’re in a store, holding and admiring the golden focus of your shopping trip, it’s all part and parcel of the experience.

But online? You are looking at a screen and clicking a mouse – with all the emotion of buying groceries.

And when the gold is in your’ cart, do you REALLY want to be adding your bank card details to make a 4 or 5 figure purchase, basically sight unseen?

I still worry to this day buying from new dealers – and don’t rest until the parcel is in my hands, with gold unwrapped, it’s satisfying weight and the play of light on it’s surface reminding me why I love precious metals.

So, yes, that’s a definite drawback to buying gold online. So why do I do it?

Advantages of Buying Gold Online

In an age where you can summon almost anything with a few clicks, honestly, why should buying gold be any different?

You may lose the initial fun of holding what you’ll buy but purchasing gold online has several key advantages that savvy investors like us can appreciate.

1. Access to a National / Global Market

When you choose to buy online, you’re not just shopping locally — you’re shopping nationally or even globally.

You have instant access to sellers and mints across the world, right from your living room. This not only opens up almost infinite variety but gives you a solid chance to capitalize on price differences in different markets.

For me, this is shown very clearly with one of my favorite coins – a gold or silver UK Britannia. Being originally from the UK, I’m a big fan of these coins and the tax advantages they offer in the UK. BUT, in their country of origin they carry a very high premium almost everywhere you look, with them being at their most expensive when bought direct from the mint. Go figure.

But these same coins, when sold in a different market – such as the US – are often among the cheapest bullion coins on offer, typically going for similar prizes as the most basic generic rounds.

Even with shipping, they can be had for less than I would be able to get them in the UK (and there’s no tax on gold when I import them!)

It’ll be the same for you. I guarantee you’ll find something away from your immediate local market at a substantial saving, and that’s it – you’ll be hooked!

2. Competitive Pricing

Competition in the online market can be fierce, which is good news for us buyers. Online dealers are vying for your business, which always leads to hyper-competitive pricing, meaning lower premiums over the spot price of gold.

Thanks to the ease of price comparison (just open several tabs in your browser and look at the same item at different online gold dealers) popular coins and bars are going to be very value-driven.

Not only that, but to get you to use their store in the first place, most major online bullion dealers have introductory offers with a limited number of coins and bars available to new accounts at next to no premium, or even at spot – and free shipping.

3. Convenience

This one goes without saying. There’s a certain satisfaction in being able to buy gold while lounging in your pajamas. It caught on during the pandemic and we’ve never looked back.

The online market operates round the clock, so you can invest on your own schedule, not on the store’s hours.

Yes you’ll need to be in to sign for delivery (or have a secure location) but those PJs can stay on right up till that moment…

Gold Bars vs. Gold Coins: What to Buy?

Now, when it comes to buying physical gold online, you essentially have two options: gold bars and gold coins. Both are excellent vehicles for preserving wealth, but they each have their unique qualities.

Gold Bars

Gold bars or bullion are the big hitters of the gold investment world. These come in various sizes, from as small as 1 gram to as large as 400 ounces.

If your goal is to amass a significant volume of gold, bars are your best bet. Bars, and specially larger bars, typically have a lower premium over the spot price compared to coins, meaning you get more gold for your buck.

From an investment perspective, gold bars are pure value. But from a personal standpoint, there’s something undeniably powerful about holding a substantial gold bar — for me I feel I’m in the Italian Job or an Indiana Jones movie – but no matter what the power is palpable.

Gold Coins

Gold coins, on the other hand, offer a little more than just the value of their gold content. Minted by governments across the world, gold coins often carry a face value and feature intricate designs – and their value can be influenced by factors beyond the gold content, including their rarity, condition, and demand among collectors.

For those with an eye for art and history, gold coins are a delight. Plus, their smaller denominations allow for more flexibility in selling portions of your investment.

In some jurisdictions some bullion coins have tax advantages over bars too. They may be free from sales tax or capital gains tax, thanks to their being legal currency. This can be a big factor, and for some a huge advantage over bars.

When it comes down to it, YOUR choice between bars and coins depends on your personal investment goals, taxation, and your aesthetic preferences.

Navigating the Online Market: Selecting a Reliable Gold Dealer

Now, the online marketplace is a vast ocean, and not all who sail here are friendly. It’s crucial to separate the trustworthy traders from the sea of unscrupulous dealers.

Here’s where Bullion.Directory comes into the picture. This platform provides consumer ratings and reviews for various online gold dealers. While I work here and am naturally biased, I’ve personally used it to identify reliable dealers many times and always feel more confident in my investments thanks to our reviews and ratings.

Our recent Bullion Dealer of the Year public vote saw over 36,000 votes cast across 72 shortlisted companies – and the winners are ALL companies I would happily recommend to my nearest and dearest.

Key to buying gold online safely is this: A reliable dealer must have robust customer service, secure payment options, and a solid reputation in the market. Make sure to delve into the dealer’s history, read up on customer experiences, and look out for any red flags. Late delivery is usually a sign a company can be in trouble so if you see a growing number of complaints recently, use a different company!

Buying Gold Online: A Detailed, Step-by-Step Guide

Armed with the necessary knowledge, it’s time to take the plunge into the world of buying gold bars and coins online. Let’s walk through the process in detail:

Step 1: Determine Your Budget and Decide Between Gold Bars and Coins

First things first, assess your financial landscape. How much are you willing to invest in gold?

Remember, gold should be a part of your investment portfolio, not its entirety. Once you’ve determined a budget, decide between gold bars and coins based on your investment goals and personal preferences.

Step 2: Understand the Market: Research Current Gold Prices and Fair Premiums

Next, turn your attention to the gold market. Stay up to date with the current spot price of gold — that’s the price for raw gold bullion in the international market.

Nearly all gold bullion dealers will have a live price on their site, so it’s easy to know what spot is at all times. Their product pricing may also be live, tied directly to the rises and fall in the market price.

When you buy gold bars and coins, you’ll always pay a premium over the spot price. Make sure to research fair premiums for different sizes and brands of gold bars and types of coins to ensure you’re getting a good deal.

This is where you would leave several tabs open in your browser and compare like with like.

Step 3: Choose a Reputable Online Dealer

Here we come back to using resources like Bullion.Directory to identify a reputable online dealer.

Look out for dealers with strong customer reviews, secure transaction methods, transparent pricing, and consistently good customer service.

Remember, the lowest price isn’t always the best deal — you have to factor in the dealer’s reputation and service too!

Step 4: Select Your Gold and Place Your Order

Browse through the dealer’s selection, choose your gold bars or coins, and add them to your cart.

Pay attention to the details of the products to ensure they’re what you want. Sometimes you’ll see an image of a certain coin or bar, but the actual product can vary – this is most common on special offers and budget deals.

Step 5: Make an Account, then Checkout Securely

Most major online dealers will require you to set up an account, and in some jurisdictions this is so they can comply with record-keeping laws and AML/KYC legislation.

This isn’t always the case though, especially for smaller buys – but when you go above a certain threshold they will want to see ID documents as part of their account-opening process. Allow for this.

Also it’s important to check the site’s terms and conditions. See what happens in the event of non-delivery, delays, or cancellation. These are important!

Once you’re ready, proceed to checkout. The dealer’s website will provide a secure payment gateway. They should offer multiple payment options — from bank transfers to credit cards and debit cards, with some even accepting Bitcoin.

Choose the one that’s most convenient and secure for you – and hit buy.

Step 6: Confirm Delivery and Insurance

Before you finalize your purchase, confirm the delivery and insurance details.

A good dealer will offer insured shipping and provide tracking details for your order, with signed-for delivery.

This ensures that your investment is safe until it reaches your hands.

Secure Storage for Your Gold Bars and Coins

With your gold on its way (or preferably long before) it’s time to think about secure storage. Storing your gold safely is crucial to protect your investment.

Safe deposit boxes, home safes, and professional precious metal storage facilities are all viable options.

Consider factors like accessibility, cost, security, and insurance when choosing your storage solution. After all, what’s the point of having a treasure if you can’t protect it?

In America, home storage is very popular all thanks to the popular saying “if you don’t hold it you don’t own it.” If home storage is your choice, you need adequate home insurance and an insurance approved safe, rated for the value of gold you will hold.

Skimping here is a false economy – no matter what you might be ‘packing’!

Key Takeaways

Buying gold online can be a simple and secure process when done right. Remember to research thoroughly, choose a reputable dealer, understand the pricing, and ensure secure delivery and storage.

As we wrap up this golden journey, I hope you feel more equipped to explore the world of online gold investing.

With the right knowledge and a cautious approach, you can accumulate wealth, enjoy the process, and secure your financial future — all from the comfort of your home.

So, get your online gold game on and step into the future of investing!

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