Five tips to buy gold at the best price

Everyone wants to buy gold at cheap rates regardless of current prices. Some bonds and stocks, and even mints, online sellers, and antique dealers come up as options. However, the collector’s gold offered by such sources is not always pure. So how can a serious investor buy gold at good prices?

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1 – Factors that affect gold rates

Before deciding to buy gold at ‘bargain’ prices, one must be aware of the dynamics that influence rates. These include:

  • Gold quantity and quality
  • The form of gold on offer
  • The source of the gold
  • The dealer

2 – Buying physical gold

It is recommended that investors buy gold bullion or coins of a significantly higher weight/value, since purchasing high-demand coins such as Krugerrands ensures that their prices appreciate faster and yield better returns. Buying gold of a lesser weight/value may be easier on the pocket at first, but will yield lower returns in the long run. This is because storage, insurance, and shipping costs are passed on from the mint to the seller, which eventually reflects in the retail price. To summarize, this makes bullion or coins of a higher weight more desirable since they have fewer price mark-ups and are more inexpensive per gram.

3 – Purchasing gold online

If you would rather buy gold from the convenience of your home, take note: make purchases only from accredited dealers who are part of the World Gold Council (WGC). You can find out more about these dealers on the WGC website to avoid getting cheated or scammed by unscrupulous or fake online vendors.

4 – Going straight to the source

Travelling to a gold mine sounds like a ‘far off’ idea, and it is. However, the fact is that gold prices are cheapest when the metal is just mined, because there is no value chain involved. Entrepreneurs and businesspeople in particular can consider opening dealerships in a gold-producing nation to make the most of low costs due to closer proximity to mines.

5 – Buy gold after its price has fallen

The best time to buy gold is, of course, when its rate depreciates a bit. However, don’t wait for prices to hit absolute rock bottom, as there’s no telling if anyone can get assumptions down to the T.