How to Buy Physical Gold: Thoughts to Consider

I remember when I first started getting involved with investing into gold and precious metals. I was in my early thirties and had absolutely no idea what a gold IRA was, or even where to see gold bullion in my area. To be honest, the number of different options for investing was quite overwhelming. I really had no idea how I wanted to invest and I was also torn between which precious metal I should be putting my money into. Should I go for gold or should I spread it out among a few like silver and platinum?

After doing some thorough research and speaking with a few local and online dealers. I was able to come to a much better understanding of which precious metals would work best for me and also which investment method would work best for my lifestyle.

Below is a brief overview of some topics to consider when you are researching how to purchase gold and silver precious metals for your investment portfolio.

How Much Are You Willing To Invest?

Is your reason for investing mainly for protection and security? Are you preparing for a potential global economic crisis which may devalue the US dollar? Or, are you looking to invest mostly for retirement purposes? Once you are able to determine why you are investing, you are then able to determine how much you believe should be invested.

When you have decided on how much you’re looking to invest, you’re going to want to look at the spot price of your precious metals so you can determine approximately what value you will be purchasing at. Basically the spot price is the current market price of a given precious metal at that moment. Essentially the spot price can change at any minute, but it’s good to get a general idea of where the price is before you get on the phone or meet a local dealer. Ideally you want to find a dealer that has a spot price that is close to what is actually on the market.

Selecting Your Precious Metals

Once you have an idea of how much you’re willing to spend, you’re going to want to start researching the type of precious metal that you want to invest in. Are you going to stick with gold? Or are you going to venture into other areas such as silver, platinum or palladium?

Other than the type of precious metal(s), you’re going to want you figure out what form bullion and you want to receive. Typically there are three types of bullion that you can get from most dealers. That includes bars, rounds and coins.

Bullion Bars

Investing in bullion bars is probably one of the more popular methods chosen by investors. One of the biggest advantages is the amount of bullion that you are able to get per bar. You see, the bigger the bar, the lower the premium. That is why you will see more experienced investors purchase larger bars in bulk to have them held in depositories or central banks for storage. Compared to coins, bars usually tend to cost less. That is why you’re able to get more bullion for your dollar.

Larger bars unfortunately do have a reputation for being counterfeit, so be very careful who you purchase from.

Bullion Rounds

Like most of the bullion available, rounds can be found in precious metals such as the gold, silver, platinum and palladium. Generally you will see investment companies carry more rounds in silver than any other precious metal on the market. Most dealers will carry rounds in one ounce sizes, although many will allow you to request smaller fractional sizes as well.

Rounds are similar to bars in that their value is based on its precious metal content. They are also similar when it comes to its size vs. premium costs. For example a smaller coin will have a higher premium while a bigger coin will have a lower premium. Rounds can be easily stored at home and also have some of the lowest premiums you can find within bullion products on the market. To the naked eye however, rounds can easily be mistaken for collectors coins or even regular fiat currency.

Bullion Coins

Investing in coins is another popular way for investors to acquire bullion. Just like bars and rounds, most bullion coins are available or minted in gold, silver, platinum and palladium. They have market value and have been used as legal tender in their country of origin. Also, like rounds, they are very convenient to store at home.

One of the biggest differences between rounds and coins is their spot and premium prices. Government issued bullion coins generally sell for a higher premium over spot price and are recognized by most as collectors items. Part of the reason for their higher premiums has to do with it’s manufacturing, storage and distribution costs. Also, due to their rarity, demand is also a factor in pricing as well.

Some dealers are recognized for their coins while others are recognized for their bars. Once you have chosen a direction, you can then start searching for the most suitable precious metals dealer that specializes in what you are interested in.

At the end of the day it’s not out of the ordinary to purchase your precious metals in coins, rounds and bars. Each form of bullion has its advantages and it doesn’t hurt to try a little bit of each if you can afford it.

Locating The Right Dealer

When looking for the right precious metals dealer, not only do you want to make sure that you get a good price. But you also want to be certain that the company you are researching is properly licensed to sell gold bullion and precious metal investments.

Besides licensing, you’re also going to want to compare the different methods/policy’s of shipping and storage. Whether or not you will need to pay taxes on your investment. The available methods of payment as well as any information that they can provide on insurance.

Payment Methods

If you’re looking to buy precious metal bullion directly as opposed to rolling over or creating an IRA account. Then most dealers will give you quite a few different options to pay. Unfortunately not all dealers accept credit cards as they prefer to have cash in hand before delivering your investment. Bank wire, money order, cashier’s check or personal check are four different payment methods that are commonly accepted among most precious metal dealers.

Storage & Security

If you are investing in an IRA, then your precious metals will already be stored by your dealer or custodian. However, if you’re purchasing directly you may need to figure out an off-site location if you’re not comfortable with keeping it safe at home.

Storing your precious metals in an off-site location is a very common practice, although it will be an additional cost to keep in mind when you’re investing. If you’re concerned about theft and the security of your home, then this is an option you should definitely consider.

Buyback Program?

Does the company that you’re looking to invest with offer a buyback program? What I mean is do they allow their clients to sell back their precious metals in the event of an emergency or any other personal reason? Not many companies provide this option for their clients, although the organizations that do end up proving a next level of flexibility for their customers. Whether your dealer provides a buyback program or even a marketplace for it’s clients, it puts you in a better position down the road if you ever choose to sell.

Regal Assets is a reliable and reputable company that is capable of providing help with all of the above services and more. They are a fully licensed and trustworthy organization that is recognized for providing top notch customer service and support to all of their clients, while also delivering valuable knowledge and insight about the precious metal industry. Regal Assets will not only help you acquire the finest and most authentic precious metals to add to your portfolio, but they will also equip you with the knowledge you need to determine which type of precious metal bullion is right for you, your family and your retirement portfolio.

For more information on Regal Assets and the different types of bullion they offer, click here. Or, click here for more info on how to obtain a free gold investors kit.


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