– Nigel Doolin, Head of Trading at Core Bullion Traders.
How to buy gold and invest in the right physical precious metal has continued to be a question asked by many people throughout the years. When you consider that most mutual funds and investment firms have invested heavily in gold in one way or another, you’ve got to ask yourself why….and how?
The returns on gold can be great, if you know how it works and by making sure you have a strategy that works. There are a number of different routes you can follow when investing in gold, but they must not compromise what your core investment strategy is.
Once you know what to do and how to do it, you can see your investments grow.
But how do you actually buy gold? There are many different ways to buy gold, it’s up to you to do your research and make sure you chose one that is safe and trusted. There have been many cases where people have bought fake gold (online) and ended up incurring large losses.
Buying from a trusted source with a physical presence gives you ‘Peace of Mind’ and makes it easier when you want to sell your gold later. Always ask your seller if they will buy back at a later date – and what that premium would be?
If you don’t want to trade online actively, then it’s best to own physical gold bullion. This is usually much easier and the costs are lower compared to other alternatives such as ETF’s.
LBMA Approved Dealers
Going for a well-known and established dealer will enable you to get your investment at a good price, and you will have the knowledge that your gold is legitimate. Ask how your gold is tested and which refinery it came from. You should only buy from a dealer who deals with LBMA approved refineries.
The dealer you choose to buy from may depend on the volume you want to buy. If you want a 1 kilo gold bar, you will invest more. This means you have to be more cautious when buying. Ask for advice from your dealer and make sure you are satisfied that they understand your requirements. And that they are offering you the best deal for you.…not themselves!