A pawn shop can also sell gold. Keep in mind the spot price of gold, the price per ounce right now in the market, as you buy, so you can make a fair deal. Buying physical gold bars online is a fairly simple process. A common way to buy gold bars is through authorized online retailers.
Search for gold bullion products on reputable retail websites, such as American Precious Metals Exchange (APMEX), JM Bullion, and Wholesale Coins Direct. Select the gold bars you want to buy by weight, quantity and price. Investing in gold stocks, ETFs, or mutual funds is often the best way to expose yourself to gold in your portfolio. There are many ways to invest in gold.
You can buy physical gold in the form of jewelry, bullion, and coins; buy shares in a gold mining company or other gold-related investment; or buy something that derives its value from gold. Each method has its advantages and disadvantages. This can make it overwhelming for beginner investors to know the best way to expose themselves to this precious metal. The dollar, and the desire of investors to keep gold as a hedge against inflation or currency devaluation, help boost its price.
Check the exchange sites to find out what the spot price is and expect to pay a premium of 5% to 8% above the spot price for a gold coin. Investing in mining stocks is riskier than buying gold bars or physical currencies, but the benefits can be more significant and include dividends that you won't get when you buy a piece of gold. A futures contract gives the holder the right to purchase a specified amount of gold on a future date and price. Holding shares in a gold mining company or gold ETF exposes you to the gold industry, and since gold doesn't necessarily move alongside the stock market, it can help to further diversify your holdings.
However, as part of a diversified portfolio, a general rule would be to limit the percentage of gold in your portfolio to 5% to 10% of the total account value. The best times to buy gold are when concerns about inflation or the economic crisis begin to arise, as gold tends to rise during those periods. The underlying reason for this is that modern attitudes have made gold mining a bit of a pariah in commercial terms. BullionVault is the only system in the world that allows you to sell your gold in one place and (since settlement is instant) use your money to buy back immediately in another.
While owning gold sounds great, and can even be held responsible during a stock market downturn, investing in gold comes with some unique challenges and doesn't always work the way you'd expect. You'll want to make sure you have as much documentation as possible so that you can attest to the quality of your gold when you resell it. And while holding stocks won't allow you to have gold in hand, it does mean you have the benefit of an asset that you can sell at any time. Dealers that offer free storage or delayed delivery may not be legitimate and you may never see the gold you paid for.
Instead of investing in physical gold, you can buy shares in companies that mine and refine gold. The reason why the direct market for gold is not as uniform as the bullion market is that the product itself is not uniform.