How To Invest In Physical Gold

There are many different types of gold that you can invest in. You can have shares in gold, gold bars or coins, sovereigns, exchange traded funds, Krugerrands, gold certificates, gold stocks and shares and jewelry. All of these are types of gold that you can invest in.  Of these types, the investments that are actually physical gold and the how to invest in them are what we are going to outline today.

1.)  Know your pricing
Before you invest in any type of physical gold, its very important that you do your research to make sure you are getting the right amount and quality of gold for your money.  This could mean that you either do the research yourself, or hire the services of a dealer who knows the gold market well enough to be able to spot a good deal, negotiate and also make sure that the gold that you are buying is really gold and not a different metal posing as gold. Where ever there is money to be gained, there are fraudsters and con men ready to take advantage, so always educate yourself and do your research before parting with your cash.

2.)  Gold Bars
Like any other product, the larger the quantity of the gold you are buying will directly relate to how much it will cost you. A whole gold bar for example, will cost you less per gram than a smaller portion because it has not had to go through any kind of manufacturing or altering process. To invest in gold bars, your best bet is to visit a gold dealer or manufacturer and purchase directly from them to make sure that you are paying the market price (and not a resellers price) on the gold.

3.)  Sovereigns
Sovereigns are usually time pieces, which are made of gold, and due to their historical value and content can gain a better asking price than what they were purchased for over a period of time. Having said, the gains are relatively slim when compared to other types of gold. To buy sovereigns a visit to your local gold dealer, or jeweler store is a good place to start, and you can also subscribe to collectors magazines who will regularly mail you with sovereigns that are limited edition or ready for purchase in order for reselling later.

4.)  Jewelry
Jewelry is the most expensive way to buy gold, but also the easiest as everyone knows how to navigate a jewelry store. Gold in jewelry shops will cost more per gram than anywhere else, due to the lengthy process it has gone through to appear again as a ring, or necklace or other item. To find good deals on jewelry it may be a good idea to do some travelling, as other countries will introduce you to the manufacturers and sell gold at a much cheaper rate than you can find in the UK, and of course, if exchange rates are preferable at the time of your purchase, then your profit margins are even greater.

Ben is an investment specilist for bullion dealers Guernsey Mint. He gives advice on a wide range on products such as gold, silver and platimum.