If you are brand-new to gold investing and you don’t fully understand how it all works, then one of the most pressing questions I’m sure you have is where to buy gold. This is understandable, because there are many ways to buy gold so you are most likely looking for advice on the specific forms of gold you should actually buy, and then where you would go to actually get it.
So I will start this article off by discussing the many different ways to invest in gold, and then I will talk about where best you can buy it safely and securely from a reliable and reputable source, at very competitive prices.
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So let’s take a quick look at some of those options now so you can get well on your way to investing in gold.
What Types Of Gold Can I Buy?
As you came to this article wondering where to buy gold it’s a good idea to look at the different types of gold first so that you can make an informed decision about what investment opportunity is the best for you. So let’s do that now.
Physical Gold - when you purchase physical gold, you will get it in the form of gold coins or gold bars. You can get numismatic gold coins or gold bullion. There are many different countries that actually produce physical gold. Some of the main countries that offer the best gold investment opportunities as far as physical gold is concerned are the United States of America, England, France, Canada, Switzerland, South Africa and Mexico. These are just a few of the most popular places to consider when researching where to buy gold that’s minted each year.
Gold ETFs – this form of investing in gold is by buying what is known as an exchange traded fund on the stock market. These ETFs trade every day that the market is open and they mimic the way the price of gold will rise and fall throughout the day. Because gold is a commodity that is ever-changing in demand, the price is always in motion while the market is open.
The ETFs for gold will trade sometimes two or three times the actual market value which make these leveraged, volatile investments very risky if you are not an expert at trading the stock market. I honestly would not recommend anyone get into this type of trading if they do not understand the gold market implicitly and do not have a desire to learn about it and become an expert in this area. It’s too risky of an investment and you’ll only end up losing your money over the long run so you should certainly stay away from it. There are better options of where to buy gold.
Gold Mining Stocks – this is another form of investing in gold by purchasing shares of the mining companies that locate and extract the gold and get it out on the market. This is also a very specialized form of investing, and I only recommend individuals invest in this type of a business if they fully understand how gold mining works and they believe they know how to anticipate whether or not a company will perform as expected or better than expected so that their shares will rise in value instead of fall.
If you do not understand how gold mining companies work, then you are much better off staying far away from this type of an investment because you’ll probably end up losing your money or panicking when your stock price dips. Then you’ll get upset only to find out that the price eventually rose much higher than what you paid and your fear kept you from capitalizing on that investment when you really should have made a decent return.
Anyone who is reading this article and wondering where to buy gold mining stocks or gold ETFs really needs to make sure that they understand the market completely. But don’t take my word for it, because there is a much better example of an individual who knows how to invest in the stock market and make a lot of money. Warren Buffett only buys shares in companies that he completely understands and he would never buy shares of a company that just didn’t make sense to him or he couldn’t somehow figure it out in his personal life.
What’s The Best Form of Gold To Buy?
The easiest and safest way to buy gold is in the physical form. Since you don’t have to try and make money from gold by trading it throughout the day, this makes it a much better investment opportunity because you get to hold onto it and let it appreciate in value over the years. So I highly recommend you buy gold in its physical form.
I mentioned earlier in this article that the options for buying gold in its physical form are either gold coins or gold bars. Both are known as gold bullion incidentally which might surprise you because a lot of people think bullion refers only to the sort of bars or ingots you image being stored in a vault such as Fort Knox.
There is another option for physical gold which is gold jewelry but this is not recommended if your main objective is to get the best possible return on investment. The reason for this is that the cost of making each piece is built into the price when you buy but rarely taken into account when you sell.
So that leaves the question of whether to buy gold coins or gold bars. Most individual investors opt for gold coins because they can be bought in smaller denominations. This makes them easier to store and transport and it also makes them more liquid when you come to sell. So if you want to invest say $10,000 in gold it’s better to have that made up of a number of coins which you could sell to different buyers rather than one bar which could only be sold to one buyer.
Next I’m going to tell you where to buy gold and the best place to do so, but before that I’d like to share with you a video which I’m sure will make you even more enthusiastic about buying gold right now as it explains why the price of gold should skyrocket within the next few years…
Where To Buy Gold?
When I was first investigating and researching where to buy gold, I came across a company named Regal Assets who really seemed to stand out from the rest. Their representatives were very knowledgeable about gold and they really helped me in the beginning when I didn’t quite know what to do as far as the purchasing process went. Over time I have built a very good working relationship with them. As well as buying gold and other precious metals from they they also helped me set up a Gold IRA which means that my retirement fund is protected from inflation and all the other nasty stuff going on around us.
I now consider the guys over at Regal Assets as friends as much as business acquaintances and have no hesitation in recommending them. I have explained why in the video below:
I started off by filling my details into a form I found online then one of the Regal Assets specialists called me to discuss all my requirements. They sent me a free gold investing kit which I found really helpful and which helped get me started in the gold buying process with them. I recommend that you contact them too if you want to take advantage of this wonderful investment opportunity.
To get started all you have to do is submit your name, email and phone number below then one of the Regal Assets specialists will give you a call.
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Introduction
Where to buy gold is a question on more and more peoples’ minds nowadays as investing in gold is increasing in popularity. Some would argue that it’s no longer a luxury but instead a necessity in these crazy, uncertain times.
When it comes to making your investment there are a number of options available to you.
If you want to hold physical gold you can opt for buying gold bullion which comes in the form of coins and bars, or for gold jewelry. This is the most simple and the least risky way.
However there are also many investors who prefer not to buy physical gold and instead to buy gold mining or trading stocks, or gold certificates. Compared to investing in gold derivatives these methods are considered to be the safest because there is less risk involved. The downside is that the profit that you get by employing these methods can be pretty slow. If you are less risk averse and are looking for quicker returns then you can consider gold derivatives.
Understanding Gold Derivatives
So what exactly are gold derivatives? Well, first you have to understand what derivatives are in general. In the world of finance derivatives are defined as financial instruments linked to assets like for example gold. The values of such financial instruments depend on the anticipated price trend of the asset or assets.
The term ‘derivatives’ is in fact a generic term that has been coined to define a specific class of financial products like ‘futures’ and ‘options’ (these are the most popular ones).
Simply knowing where to buy gold won’t assist you greatly if you don’t have a full understanding of the alternatives available to you, so here follows a more detailed explanation…
Firstly let’s find out what ‘futures’ are all about. Those who are involved in gold futures trading have to make a gold futures contract. This contract is a sort of commitment whereby the buyer or seller commits to buy or sell gold (a specified quantity) on a pre-determined date. The price is also pre-set. Investors trade such contracts on worldwide exchanges.
This type of investment is potentially very lucrative and the trader can make a lot of profit within a short time. Of course there is a risk factor involved due to the fact that the price of gold bullion determines the success or failure. This adds to the volatility, so it is recommended that you do your homework well before taking the plunge.
Coming to the ‘options’ part, it is actually a right bestowed on the owner by virtue of which he can sell or buy gold at a pre-set price sometime in the future (on a specified date). Unlike with ‘futures’ there is no compulsion with ‘options’ so the owner is free to decide whether he wants to complete the transaction or not.
Under gold ‘options’ several factors are taken into consideration before determining the cost. These are: the present and anticipated price of gold, the contract price (pre-determined), the duration of time up to due date and the interest rates (official). ‘Options’ trading is done on margin so your upfront payment is just a fraction of the total value of the contract.
Because of this leverage investors consider ‘options’ to be pretty affordable particularly in comparison to the potential gains, especially since you can limit your losses but there is no limit on the amount of profit you can make.
Where To Buy Gold Derivatives
If you are wondering where to buy gold derivatives the first thing you need to do is open an account with a stock broker. You can do your research for one initially online and if your main focus is to be on gold then it is recommended that you look for one that either specializes in precious metals or at least has an in house trader with experience of precious metals.
You also want to consider whether you prefer to trade yourself online or by calling your broker. If you prefer the latter you need to find a broker that has their own online trading platform. First time investors in derivatives may find it better at least initially to call their broker and give them verbal instructions when opening or closing positions. This is where it would be beneficial to have an account with a broker with experience and expertise in precious metals
Why Buy Gold Derivatives?
This question can be approached in two ways: why buy gold derivatives or why buy gold in general? We have already outlined the benefits of buying gold derivatives above so now let’s take a step back and look at the more general picture.
Gold has what is known as a negative correlation to stocks and bonds which means that when these go down, gold goes up. This correlation applies too to inflation and the value of the dollar. This is why gold is seen as a hedge for investments and why it becomes a safe haven when the economy is struggling.
This is precisely why more and more people are researching where to buy gold right now, given the extent of global economic uncertainty. Many fear that the US National Debt is out of control (it is now around a staggering $15trillion) and that the current government policy of printing more and more money will lead to hyper inflation and seriously reduce the value of paper currencies, i.e. cash.
Everyday folk are getting restless about their pension funds which depend entirely on the stock market for performance and are looking at ways to convert a percentage of their IRA’s and 401k’s into gold and other precious metals.
So as you can see, it’s not just governments, conglomerations and the super rich who are clamoring to buy gold today. Many individual first time investors are too. And each individual has their own circumstances and requirements. Those who want to take a long term view can purchase physical gold to hold on to. Others who wish to invest in gold without owning any physically can invest in gold mining stocks. And those who prefer to be more speculative and aim for quicker returns can invest in gold derivatives.
Conclusion – Where To Buy Gold For Maximum Gain
Buying gold derivatives offers you the potential to make profits from investing in gold quickly. The downside is that you can lose quickly too. Buying gold stocks is less risky but your return is governed not just by how gold is performing but also by how the Companies you invest in are run. Buying and holding physical gold is the least risky investment option but you need to be prepared to wait longer for your returns. This last one is my recommended option for newbie gold investors by the way and if you have read the rest of the articles on this site you will know that my overall recommendation for first time investors is to buy gold coins.
So when considering how and where to buy gold you have to ask yourself some questions. How risk averse are you? What trading experience do you have? Can you afford to lose the money you are investing? Are you prepared to take a long term view? Would you feel comfortable holding physical gold? Answering those questions will help you determine your strategy.
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Introduction
Like many people you may be aware that gold offers a great investment opportunity but you may have questions about where to buy gold and what options you have available to you. Well one option that you could consider is to buy gold stocks.
First of all you should be congratulated on the fact that you are considering investing in gold in the first place. In challenging economic times such as those we face globally right now gold offers you a way to protect your wealth.
You can use gold as a protection against inflation, as a hedge against devaluing paper currencies and as a hedge against falling stock and bond prices. Gold has a negative correlation with all of these, which means that when they go down, gold goes up in value.
If you are considering buying gold then there are many options available to you. You can buy gold in its physical form, for example you can buy gold bars or coins. For more speculative forms of investment you could choose gold derivatives. In addition you can buy gold stocks.
Gold Stocks
Here we will look into gold stocks. You can purchase gold stocks or shares from companies involved in the gold industry and most commonly this will be from gold mining companies. At its most basic level the value of gold stocks rise in accordance with the price of gold. But there are other factors too that contribute towards this rise. The management strategy pursued by the gold mining company; the quantity of gold available in the area where it is mined and the economical/political risks taken by the company are also important factors.
Since you will be buying gold stocks from individual gold mining companies you should do some research into each one before buying. You should also make a careful analysis of the gold mining/trading market and the companies involved in it. As well as conducting your own research you can seek expert advice. Once you are satisfied with your findings you can go to the next stage of investigating where to buy gold stocks.
Where To Buy Gold Stocks
In order to buy gold stocks, or any stocks and shares for that matter, you need to open an account with a broker. This starts with research too. If you intend to buy only gold stocks then try and find a broker who specializes in or at the minimum is experienced in the gold sector.
Ask the brokerage firm if they have a particular representative who specializes in the gold or precious metals sector. If you can find one that does and you can build a rapport with him or her this will help you considerably when researching prospective companies to invest in.
Once you have done that you can decide on your strategy for buying (and selling) stocks. You can do this by calling the broker and giving them instructions case by case or you can do it yourself using the broker’s online trading platform. Of course if you prefer the latter you need to make sure that you open an account with a broker who offers that facility.
Stock market investors are always on the lookout for stocks with the potential for a good return. They not only keep an eye on the stock market but also keep themselves informed about the economy and the current political situation. When they feel that things are looking positive they invest in the stocks of companies which they consider to have the best profit potential.
So if you are concentrating just on gold stocks your general market research should be targeted towards how the economic situation is impacting the price of gold. If and when you feel that the economic situation is likely to push the price of gold up you should then direct your research towards companies in the gold sector.
When you buy shares from these publicly traded companies you get the opportunity to ride on the back of the way gold is performing and more particularly on increases in the value of gold. Provided a gold company itself is performing well its value should be pushed up when the price of gold goes up and in such a case the value of your shares will go up too.
The supply and demand factor determines the price of gold. When the economic situation becomes uncertain it results in increased buying of gold. This drives up the price of gold, the value of the gold company that you have invested in goes up proportionally and with it the value of your shares rises too. So the higher the demand for gold, the more lucrative gold stocks become.
When researching where to buy gold stocks with the most upside potential you need to check out the fundamentals of the individual gold mining companies that you are considering investing in. You have got to satisfy yourself that their share prices will increase whenever there is an increase in the price of gold.
You can do this through technical analysis, through speaking to your broker and through your own general research. Making sure that the company is financially secure is an essential prerequisite.
Exchange Traded Funds (ETFs)
Another option available to you is to invest in gold exchange traded funds rather than individual stocks.
ETFs are funds that track indexes like the NASDAQ-100 Index, the Dow Jones and the S&P 500. Gold ETFs track the gold sector
Since this fund is not influenced by the performance of individual stocks, any losses incurred by a handful of gold mining companies get absorbed by the rest of the mining companies and therefore you are spreading your risk.
Where to Buy Gold Stocks – Conclusion
My overall conclusion and recommendation is that the easiest and less risky way for a an inexperienced investor to buy gold is to buy it in its physical form, and more specifically to buy gold coins.
However if you prefer not to buy physical gold but you still want to have gold as part of your investment portfolio then buying stocks and shares in gold mining companies is definitely an option to consider.
If you are wondering where to buy gold stocks then the internet is an excellent starting point for your research. There you can check out stock brokers that best suit your circumstances, then when you have opened an account with one you can do online research into individual gold mining companies whose stocks you may wish to invest in.
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