Sunday, February 19, 2012

Where to buy physical gold for investment?

Physical gold is attractive.

No matter what you say about gold, especially the risk of having physical gold, the fact is that gold is attractive.

People a few hundred years ago loved gold.  They loved gold bars and gold jewelries.

People love gold today too.

Look at the gold price now.  It is so high, yet those who can afford it still insist on buying.

You can never see a wedding in India and China without gold jewelries.

It is unacceptable not to have any gold accessories.

However, when it comes to investment, you must not let emotions ruin you.

You must understand that gold jewelries are not good for investment.  You are paying far too much for the workmanship and the gold content is not high.

When it comes to precious metal investment, you have a choice of paper asset or physical asset.

If you really love the physical products, try to buy only 99.9% purity gold bar or gold coin.  Never buy anything with lesser content of precious metal.

The problem now is where to buy physical gold for investment?

There are actually many places you can buy physical gold.

Since the demand is great, there are equally many places for you to buy the genuine items.

1.  Bank

You can buy from the bank.  Even if the local branch does not have it, the bigger banks in the city will have it.

The banks are selling the national minted gold coins too.

You can buy gold bars or gold coins.

Granted that gold coins look nicer than gold bars, that does not mean you choose the nicer looking items.

Bear in mind the cost of 1 ounce of gold bar is lower than 1 ounce of gold coin.

2.  Goldsmith shops

You can ask for the price of the gold bars.

The shops will not highlight the fact that they are selling gold bars, since the margin is not high for them.  Gold bars follow the international spot rate, and they cannot just change the price.

You are likely to buy Swiss minted gold bars.

3.  Mints

You can buy the gold bars directly from the mints.

There are many private mints that sell gold bars, and gold coins.  However, you must pay for the shipping and insurance.

Since the regulatory bodies in various countries are keeping a close watch on the purity of the products, you can rest assured that you will get the genuine items.

After all, not everyone can set up a mint in any country.

4.  Ebay

Ebay is another place for people to buy physical gold.

However, that does not mean you will get the real item.  You have to do your homework and find out the reputation of the different sellers.

Some of them are collectors, and they are selling their products for a profit.

Imagine those who buy when the price is just over $1000 per ounce, and now the price is $1700 per ounce, just think of how much profit they have made from their investment.

They can get better rate when they sell on Ebay than to pawn it away.

That is why you are likely to get real goods, but you must do your homework.

5.  Forums for investors

There are many forums for precious metal investors.  You can join the forums, and learn from the experts there.

You can search the marketplace for those who want to sell off their collections.

The best is to find out how active they are in the forums, and find out how many people have bought from them in the past.

Those who are very active are unlikely to sell you the fake goods.

They do not want to jeopardize their reputation.

Buy physical gold should not be the only way you invest in gold.

After all, you have to buy a safe to keep the physical gold.  There is a high risk of losing the physical gold bars due to fire or theft.


  1. this days people prefer real estate rather than gold to invest for. the price of gold have been too much fluctuating. buying and keeping physical gold in forms of gold bars can be risky. the gold must be preserved in form of jewelry and ornaments. anyways thanks for sharing such a great post.