How Do You Buy Gold?

There are many people out there that want to buy gold but have never done so in the past. After all, the process of buying gold and other precious metals is probably not as familiar to many individuals in the same way as stocks and bonds. 

Gold is, after all, a commodity like oil, corn, or wheat. But before diving in and buying just any type of gold you see, it is important to educate yourself on the market for gold and which type of Gold products best matches your investment needs.

Those individuals who are new to the precious metals market and who have not done their proper research into the different types of products available are usually the same people that make costly mistakes when they buy gold. They often see prices going up, and panic sets in. 

They may believe that if they do not hurry up and make their purchase at a certain price, then they will lose when they decide to buy later because the price would have gone up. This type of panic-buying leads to poor investment decisions more often than not.

To avoid a panic buy, there is one thing that individuals must always keep in mind with regard to gold - prices always fluctuate. The price may go up or down a little after you make your purchase, but the main thing is the type of gold you plan on purchasing because this where many first-time gold buyers make their mistake.

• The price of gold is determined by the spot price, and the spot price is based on the value of 1 troy ounce of gold at a particular "spot" in time. This is why it is important to buy investment-grade gold bullion - products that contain at least a full troy ounce of gold. 

• These are among the most liquid gold investments, and many governments around the world mint their own investment-grade gold bullion coins to satisfy investment demands.

• Among the most popular ways to buy gold are with bullion coins. American Gold Eagle, American Gold Buffalo, Canadian Gold Maple Leaf, South African Krugerrand and Vienna Gold Philharmonic.  

• Each of these gold bullion coins is guaranteed by their respective government mints to contain a full troy ounce of gold bullion that is refined to a specific purity level. 

These assurances make things easy for first-time gold buyers because they can be confident that they are making the right choice in regard to the gold product. They are recognizable around the world and are thus easy to sell if the need ever arises.

One of the best places to go for purchasing gold bullion coins is a bullion dealer. Some are authorized resellers of these coins, which generally assures the most competitive pricing over the spot price of gold. 

Bullion dealers sell in large volumes, so they have the ability to fill any size order, and they tend to offer the widest selection of gold bullion coins.