Buying Gold


Buying gold in physical form which can be found as bars and coins, is sometimes more costly than buying gold at stock market, exchange-traded fund, or trading with spot gold live chart. Buying in physical form might have transport cost,
which will add to the cost, but not the value and also storage cost such as a vault (one time fee), or storing at a bank (which will have a reoccurring fee).


Trading Gold

Buying and trading gold at stock market level such as buying into separate and individual mining companies (stock)
or gold mutual funds. This type of investment is more liquid than physical gold because they can be sold anytime
the market is open in the comfort of your computer sitting at home. But with this type of investing there is also fees involved
such as trading fees if a broker is involved, mutual fund fees, and tax on every gain.




Buying gold in physical form can sometimes be costly if its not bought at the right price level. Buying at a jeweler store is an example of buying at a premium price. Buying with a gold dealer is less expansive. Pawnshops are a great example they sell at premium level but if you sell your gold to a pawnshop you will most likely get a price that is half of what they will later sell it for. For example a 50 gram 24k gold bracelet is brought to a pawnshop they might offer you something like $15-$20 a gram. They will tell you the bracelet is scrap gold, and lead people to believe that it's worthless. When they acquire the bracelet, they pay the customer $15-$20 gram, polish it and sell it at premium level to another customer for $30 - $40 a gram leaving them with a nice size profit.


Gold Auctions


Buying gold at an auction is one way of being in a good position. For example buy gold from eBay at $25/gram. sell it the next week at the same price +/- $1. With that in mind the problem with transportation and storage comes in. Also searching to buy at the right auction at a fair price.



Tips on buying gold:


Don't buy coins if you are not familiar with this type of investment.


Don't buy at premium level, since its hard to sell at premium unless you own a jewelery store.


Test any gold to make sure you get what you pay for.


Calculate fees for any transaction, small fees can add up.


Consider liquidity in case you need access to cash.