Gold is a hard asset that investment portfolio managers buy to protect wealth. Investors who are new to the market are vulnerable to scammers. As gold is based upon market forces It is up to customers to find more information and what goes into the pricing of gold bullion.
How pricing works
The price your gold dealer or buyer is likely to quote you is based on what is called the gold spot price. This is the real-time price in commodity markets.
A gold dealer will charge a premium price that includes the cost of minting, distribution of the gold and his or her own profit. Typically, an ounce of gold can be bought 2.5%-3.6% over the spot price.
Coins have higher premiums because the governments that make them charge higher fees to wholesalers than private refineries that make gold bars. This is because they are small, intricately designed which makes them costlier to mint.
How do you know if you can trust the gold dealer you are buying from?
You need to know what others are saying about their experience with a certain buyer. Read customer reviews and check consumer protection agencies for complaints lodged against a particular company. Also ask what hallmarked bullion bars they have for sale.
If you buy gold bullion Brisbane you need to find out a couple of things like how long they have been in business. The dealer must have a physical address, a telephone number to call, chat features or instant messaging and an email address on their website.
A good bullion dealer will have a fair price and all the information you may require. He should be a real-life gold buying encyclopaedia. The dealer should be able to provide you with some guarantees in particular, the physical delivery of your bullion.
Factors to consider about buying gold online vs a local dealer.
Online gold dealers have lower overheads which enables them to offer low prices.
With online dealers, you can buy gold from anywhere in the world.
Online dealers offer volume pricing which means the more gold you buy, the lower the fees you will be charged by a dealer.
New gold buyers and investors can benefit from the cost averaging strategy that some online dealers use. Cost averaging works by having you buy gold bullion Brisbane in small amounts over an extended period. Daily gold spot price movements will have less impact. When the gold price dips you get more for your dollars, if it rises you stand to make even more if you decide to sell.
Online dealers allow you to buy as much as you need and keep it safe and secure in a storage facility. This means you are able to store your assets outside a traditional banking system.
Buying from a local dealer has its own advantages like the fact that you take physical possession of the gold. Transactions are instant this means you don’t have to wait to take possession of your gold.
When you decide to buy bullion, do weigh the different ways of doing it. Choose a way that will work for you