Where do I Buy Gold for Investment?

Susan in Connecticut asks “Where do I buy gold for investment?” and I don’t think she’s being ironic.

Bullion.Directory’s Ask Ally Service
By Alison Macdonald
Commercial Editor at Bullion.Directory

Not to say that’s a poor choice as they are no doubt excellent companies – but perhaps Susan has a larger investment sum in mind than can typically be dealt with at local coin dealers.

So, with that possibility, here’s where I’d suggest Susan goes to whet her gold investment appetite.

#1. Large Bullion Dealers

The bread and butter of gold investing are the larger bullion dealers. They’re like a superstore for gold – convenient, reliable, and with a massive variety of choices.

You can buy gold coins, bars, and rounds – often at low premiums and low thresholds for free insured shipping.

The larger dealers will offer a variety of payment methods from check, wire, cash, credit card, PayPal and even payment in cryptocurrency.

We list some true giants in the field like JM Bullion and Silver Gold Bull – alongside many other excellent choices who ship nationally and even internationally. Our Bullion Dealer of the Year winners in the e-Commerce category are all perfect starting points and offer transparent pricing at low premiums.

But here’s where my cautious nature comes in: Not all dealers are created equal.

If you’re venturing outside of our top choices, always look for dealers with a solid reputation, clear LIVE pricing, and good customer service.

Check out reviews and ratings on impartial established sites like Bullion.Directory and if something doesn’t feel right move onto another dealer. Your choices are near unlimited as we’ll see next…

#2. Online Platforms

Welcome to the digital age, where buying gold can be as easy as clicking a button.

This is not simply a continuation of my recommending larger national bullion dealers, because now dealers of all shapes, sizes and niches seem to offer their customers an e-commerce site.

Online platforms offer the convenience of shopping from your sofa. Prices are often competitive, and you can compare different dealers easily.

But remember, with ease comes the need for caution. It doesn’t take a lot of skill to set up an online store in this day and age, with a huge number of off-the-shelf options available. Try to ensure the online dealer has a physical presence, secure transaction methods, and a good return policy.

And read their small print. Watch out for shipping costs, buy back prices and cancellation/restocking fees!

No way to get in touch immediately? No phone number or email address given? Move on to another site.

#3. Local Coin Shops

I know I started out by knocking LCSs a little in terms of the scale of deals they can provide, but they are in fact a fantastic source of investment metals.

There’s something reassuring about walking into a local coin shop. You can see, touch, and feel the gold before you buy.

Local shops often offer a personal touch, and you might even snag a good deal. But, and it’s a big but, prices can be higher due to overhead costs and reduced economies of scale – as their wholesale costs are always going to be higher than the big guns. Another kicker is not all local shops will have the same variety or stock levels as larger dealers.

But the stocks they DO have can bring up some truly interesting opportunities, some absolute bargains and can be the vehicle to a long-term relationship that could see you add some smart choices to your portfolio you may never have given a second though to.

#4. Coin Shows and Conventions

Think of these as the festivals of the gold world. Coin shows and conventions can be a treasure trove.

True, they are more typically aimed at numsimatics collectors, rather than metals investors, but that’s not to say there are not some choice buys to be made.

You’ll often find a range of less run-of-the-mill products, and it’s a great opportunity to learn and network.

However, more caution here: these shows can be overwhelming, and it’s easy to get caught up in the excitement. It’s also easy to flip from being a bullion investor to a numismatics collector and this can be an expensive transition until you know more about this specialist market.

Stick to your investment goals (bullion) and budget (low premium only!)

Don’t make the mistakes I made…

#5. Online Auctions and Marketplaces

Online auctions and marketplaces can be a gold mine for rare finds. But they can also be a minefield.

Authenticity, pricing, and seller reputation are crucial. If you’re not experienced, it’s easy to overpay or buy a counterfeit. I also know more than a handful of investors who have bought from well-known general auction sites to end up being shipped something entirely different to what they had bought, and where the auction site sided with the seller.

I’ve stopped buying from these places because the risks of fraud are too high – and I’d recommend anyone else should do the same.

#6. Directly From Mints

Buying directly from mints is like getting your veggies straight from the farm.

You’re getting gold products straight from the source. This can include limited edition coins and new releases.

The downsides? Mints usually don’t offer buy-back services, and their product range can be limited to what they produce.

And lastly, I’ve rarely seen direct-buy products any cheaper than buying from bullion dealers. In fact there’s a well known UK mint with Royal connections where I have NEVER ever seen products for less than I can buy literally anywhere else.

#7. Financial Institutions and Banks

Some banks and financial institutions sell gold, and it feels safe, right? It’s a bank, after all.

But beware, the convenience might cost you in higher premiums. And not all banks offer a wide range of gold investment products.

Besides many of us buy gold as a protection from the very shenanigans these big banks pull.

 
In summary, ‘where to buy gold for investment’ isn’t just about the place you buy from; it’s about the approach.

No matter where you choose to buy, do your homework. Look for reputable dealers, compare prices, and always be mindful of the authenticity and storage of your gold.

And remember, investing in gold is not just a transaction; it’s a journey. So enjoy the process!

 Previous Post

Is a Gold IRA a Good Investment?

Next Post  

How Did You Start in the Gold Industry?