A Beginners Guide

Whats The Risk

Gold investing is a powerful way to protect yourself against inflation, stagnation and instabilities in the economy. No matter how bad the economy may turn into, you are totally safe in your net asset if you have gold as a means of protection. Gold has long been considered an indestructible, forever valuable precious metal that will only rise in value when time passes. Instead of going for forex, options, stock market and other high risk investments, you should consider securing your wealth by investing in gold. No matter how bad the economy may turn. gold will never deteriorate in value.

What Is Gold Bullion?

Gold bullion are gold coins or bars of various sizes, weights and types. You can purchase bullion in a variety of sizes and weights, from as small as one gram to one thousand kilogram bars. Large companies and institutions often sell the traditional 400 ounce bars.

When you buy gold bullion, it comes at a price and premium over the market price. The premium changes value everyday. The smaller the coin or bar, the higher the premium. If you are afraid of this fluctuation, you could demand for fabricated gold which does not change value much. However, fabricated  gold coins will cost you higher, since they require more labor costs. If you are a gold investor and want to pocket in the fluctuation of gold prices, you should not choose this type of gold bullion.

What is the Best Bullion to Buy

If you are interested in investing in physical gold, it is best to buy the largest size bars you can afford. Larger bars have closer value to the actual price of gold at the time you decide to sell out, and require less margin payment on your part. Whenever you perform a gold transaction, you will have to pay a margin, which is a percentage of the value of the transaction. The larger the bar, the lower the margin you will have to pay. If you are able to afford a 400 ounce bar, it is highly likely that you can also afford the storage and transport fees associated with such a large value of gold. High value bars can be kept in bank or private vaults, so you will be required to pay for the storage yourself. If you only purchase a 1 gram bar, you may be required to pay twice the actual value of the gold bar or coin if you see what I mean.

How to Buy Gold Bullion

First of all,  you have to determine how much you are willing to spend. Then, you start looking for an appropriate dealer and see what they are offering. Choosing the right dealer or mint is very important. You should choose an established and trusted dealer or mint that has a good track record of happy customers. It is not recommended to buy gold bullion off eBay, unless you know the seller extremely well and are sure of their quality. You should research the market and get the current value of a gold bar or coin per ounce or gram in GBP. With this information in mind, compare the price of the bullion bars being offered by the dealer.

Get the current value of gold per ounce or gram in GBP

This is the standard used. Compare this to the price of the bullion bars on offer. If you want to resell the bars for profit later, make sure to ask for a gold bullion certificate. However, in case of small bars or coins, due to the high margin associated with them, you are unlikely to make a profit reselling the bars, unless the price of gold rises considerably. Today, you can even buy gold bullion entirely online. You just sit back and wait for the order to arrive or let them store it for you in their secure vaults. Buying online is very safe and confidential.