Key Points to Consider Before Purchasing Gold Bullion

Image by mandiberg via Flickr

Are you contemplating investing in gold bullion coins or bars as part of your business investments but are unsure of where to begin? If you’re new to the game of investing, it’s not always as simple as recommending a type of gold coin or a size of a bullion bar, but knowing the different points you should consider before investing in either kind of bullion. Knowing these will make it easier for you to distinguish your goals, what kind of bullion works for you, and the best place to buy gold from.

• Figure out what your financial goals are and what part of your assets you want to devote to physical gold or gold bullion. If you have long-term goals, you may be better off with gold bars, where as if you’re investing in gold bullion for a safety net in case of an emergency, bullion coins are the way to go.

• Decide whether you want to invest in bullion bars or bullion gold coins. Typically, it’s more beneficial to start off with bullion coins only because it allows more flexibility since coins are easier to trade in times of financial crisis. Many coins also can be used as legal tender and are collectible, or you can buy coins simply for the melt value. If you prefer to start investing in bullion bars, they often contain a low premium price, which allows you to build your portfolio easily. They are also easy to stack and store in various mints and vaults.

• Watch the gold purity amount, especially if you’ve decided to invest in gold bullion coins. Aim to buy coins with at least a 90 percent purity amount. Most coins have that. In fact, in 1967, the South African Krugerrand was the first gold coin with 91.6 gold purity, and nowadays coins like the Chinese Pandas and Austrian gold Philharmonics are made from .999 pure gold.

• Choose a reliable gold dealer. Find one that is an authorized gold dealer and has direct links to international mints. Check their website to see that they not only list positive reviews but the current prices and exchange rates.  You can buy pure gold bullion at City Gold Bullion to get a good deal.

• Watch for scams. Avoid online gold sites that want to send you your bullion to a designated third party or secure location because they may not even have the proper bullion. In addition, make sure you’re up to date on both bullion coin and bars melt value so you don’t get ripped off.

• Know the best places to buy gold. Avoid auction sites and gold vending machines and kiosks that now populate shopping malls all over the world because you don’t know how reliable these people really are. Instead, buy pure gold in Brisbane from a gold dealer has access to a Swiss gold mint so you know all the bullion is authentic.

While investing in gold bullion appears to be a simple process, you should definitely keep the aforementioned tips in mind as they will assist you on making the most profit on your investment.