How to Buy Gold -3 Ways to Buy Gold
People have been trading and investing in gold longer than they have in any other currency. Paper money used to have a gold equivalent back when a country was allowed to print a certain amount of money equal to its gold reserves.
However, when countries decided to use fiat money instead, that’s when gold trading hit it huge. Up until now, people continue to invest on and buy gold as a means of protecting money from dipping with currency failures and other financial crises. Gold buying is also popular due to the upward trend on the price of gold that would suggest this yellow metal to be a good way to save money over the years. Gold might not be perfect as an investment, but it certainly has its good points. If one is planning to invest in gold, here are some ways on to buy gold that could be considered.
Many people who are new to the market buy scrap gold for starters. Indeed, scrap gold may be the best way to go especially for small time investors or traders. Everyone has scrap gold lying around the house thus giving one a head start on gold collecting. Now the question that remains is how to buy gold to add to this stockpile. Buying gold from friends is a great way to start. Most people have small amounts of unwanted gold in the form of broken jewelry or gold items. Ask these people whether they’d be willing to give it up for a price. Some people are even willing to give up gold for free! Settle the deal at a price that will leave enough room for earnings when it is time to sell the gold. From family and friends, one can then expand his search on the internet or on local pawnshops.
Another way to buy gold is by buying gold bars or coins. Indeed, gold bullion might seem like an intimidating choice of investment as this is typically a more expensive option to explore as compared to scrap gold. However, it is possible to get smaller gold bars ranging from 1 to 100 grams. One can also buy gold in the form of old coins. Old coins used to be made of almost pure gold thus making them a good alternative. Apart from that, many people look into buying old coins as they have both historic value and numismatic value that both gold and coin collectors like.
However, storing gold bars or coins may be a pain especially when one’s stockpile has expanded exponentially. Not anyone has the luxury of secure space for safekeeping large amounts of this metal that’s why gold Exchange Traded Funds or EFTs have been a popular choice of how to buy gold despite its relative newness to the market. Banks own the greatest gold reserves and they have the better capability to store large sums of gold. Buying EFTs from the bank is a way to buy gold one cannot touch. Basically, the gold one has paid for stays in the bank, and in place one is given a certificate that corresponds to the amount bought.
The EFT behaves just like real gold. One can sell or trade it according to the price held by the gold market and not for the original price that one has paid to get it. This provides a safer and easier way for gold buying and trading. If one doesn’t have any problem with not seeing or touching the fruit of their hard work and investment, then EFT is a great way to go about buying gold.
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