Saturday, February 28, 2015

The Basics Of How And Where To Buy Gold

By Olivia Cross


With the turbulent economy, diversification of our portfolio is the only way we can be sure to retain most of our assets in case of an economic meltdown. The ordinary classes of assets are categorized into four; the cash, securities, tangible assets, and real estates. Each category comes with its own level of risk and speculation. Unknown by many investors, there is another asset category that tends to perform better and defy ups and downs of the economy. This is the precious metal category. Wise investors use precious metals as a hedge against the inflation, deflation, and other economic risks. As a leading asset in the category of precious metals, the question of how and where to buy gold is a major concern for new investors.

Buying, selling or even storing gold is not difficult. It is recognized and accepted in all countries in the world, with a generally stable price. The bullion is an onshore asset and is kept off the balance sheet, which is another advantage. There are two major ways of investing in this asset; the bullion bars or coins. By investing in bullion, you will get the asset at a lower cost for every troy ounce.

Normally, the bullion bars come in 1 troy ounce, 10 troy ounces, and 15 troy ounces which are the standard sizes. They can also be available in 100 and 400 ounce bar sizes. In the same way, it is still possible to get smaller bar sizes that are less than one troy ounce in size from a few groups of dealers.

The purity of the precious metal you invest in is very important. Ingots are very pure with an industry rating of a minimum fineness of . 995 fines. This ensures that you invest in the highest purity, clarity, and quality.

The bar prices for bullion are usually inclusive of a small premium of the spot price. This is there to cover the cost of processing the bar. However, the larger the bar sizes the lower the premium price when measured in percentage terms. The most important factor is the background of the dealer you do business with. The dealer must be legitimate and only offer the bars that are fully refined by recognized manufacturers. This is the best way to be protected from counterfeits.

In addition to this, as an investor, be ready to pay an assay fee that is done every time when buying or selling bullion with the help of a dealer. It guarantees purity and authenticity the bullion you are dealing with. The assay checks should be done as a way of determining the legitimacy and safety of both parties.

The bullion bars are not by any means the only option available. The coin bullion offers the second alternative. The coins are simpler to purchase, exchange, divide and hold. The bullion coins are typically the legal tender and are issued by the governments of the said countries. This guarantees their face value, its purity, and even the content. They are available in (1, 1/2, 1/4, and 1/10 oz).

There are numerous merchants and collectors gatherers who are prepared to offer bullion coins and bars. All that is needed is a legitimate historical verification of your dealer. The metals must have the most elevated amount of fineness and your investment is only secure with the right dealer and guaranteed bullion.




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