How To Buy Gold
When deciding how to buy gold, there are many considerations that differ from other investments. This independent guide enables you to avoid buyer pitfalls and buy gold securely with confidence.
The author (Dudley Haigh) has bought gold in many different ways over the last 25 years. He has a degree in Engineering Science and trained with a Big 4 consulting firm before freelancing. His interest in gold arose from curiosity about inflation and the economy.
The information is provided for educational purposes only and is not intended to constitute financial, investment, legal, or tax advice. Readers should consult their own professional advisers before making decisions.
The step-by-step guide covers the topics below and some background on the history of gold as money and the gold price:
1. Physical gold vs paper gold vs gold mining shares
The 3 main options for buying gold are explained. Discover how your motive for buying gold determines which option is most suitable for you. Learn the pros & cons of the different options and the difference between beneficial ownership and outright ownership.
2. Gold bullion
Understand the specific terminology relating to gold bullion, including purity, content and troy ounces. Learn how gold bullion is valued and how dealers’ premiums are calculated.
Learn how the following parameters differ for gold coins and bars and the implications when buying – purity & content, price, dealer premiums, capital gains tax (some coins are exempt) and liquidity.
4. Gold storage
Discover the relative risks and benefits associated with safes, deposit boxes and specialied vaults. Understand the difference between unallocated / pooled gold, allocated gold & segregated gold. Learn about insurance, jurisdiction, disclosure, retrieval and sale.
5. Gold dealers
Learn what to look for when choosing a gold dealer in terms of reputation, pricing & fees, buyback policy, product selection, delivery and storage.