You've likely heard that there's no reward without risk, and this is sadly true. Luckily, though, investors have found ways to mitigate potential losses over the years so they can turn a reliable profit.
Diversifying your investment portfolio is a critical way to prevent loss. Mitigating risk and recovering lost funds is essential for those trying to turn a profit and get a high ROI. Physical gold is a tangible investment that can offset the volatile and unpredictable nature of stocks and bonds.
But how do you buy gold safely online? Read on to learn how you can avoid scams and make the most of your gold investment.
Avoiding Scams: How Do You Buy Gold Safely?
Because gold is so valuable, people are often willing to pay a lot for quality pieces. A single authentic Britannia Coin, for example, is worth over $2000. This is the normal price of a single ounce of gold.
One of the most important reasons for this is that gold is a rare investment. Not everyone has it. Because of this, some unscrupulous sellers will try to sell other look-alike metals online and pass them off as gold.
Gold-plated nickel or copper can look just like gold in an online image. Pyrite looks a lot like bullion. Copper and brass can also be made to look a lot like gold, and this can be extremely deceptive when it's shaped like a coin or bar.
Looking at the documentation of possible investments online can help. Most retailers hold onto documents that certify the authenticity of their wares. While these can be forged with Photoshop, asking will help you rule out retailers that flat-out refuse to provide certification.
Shirk Weird Deals
If you're looking for gold online, the price will be about $2000 per ounce. As of November 2023, the current market price of gold is about $1992.28 per ounce.
Note that this is the price of gold bullion that holds no numismatic value. American Eagles, Britannia Coins, Philharmonic Coins, and other gold coin varieties also hold value as government-issued currency. This "numismatic value" can bring costs up to $2100 or slightly higher.
If you're looking at a 1-ounce gold coin that's being sold for $500, you might think you're getting a good deal. In reality, you're probably getting scammed with a worthless copper or brass counterfeit coin. You won't be able to sell this investment at a profit later and will be out $500.
Sometimes, people will even sell a coin online and never ship anything out. You won't get a product, and there will be very little you can do about it when the shop won't communicate with you. They'll just make off with your payment.
Remember that if something seems too good to be true, it probably is.
Look at Pictures of Potential Investments
If you're buying physical gold online, it's important to ask for a photo first. When you do, you can examine the coin for:
- Any irregularities
- Obvious signs of Photoshop
- Stamps of authenticity on the coin's surface
- Strange coloring that looks like fake gold
- Blemishes (if you're buying something in mint condition)
You also may want to reverse image search the photo online. If it shows up anywhere besides the retailer's website, it may be a photo they downloaded online and are sharing as their own. You may be scammed if the retailer isn't reputable.
Work With a Reputable Dealer
It's possible to forge documents proving authenticity. People sometimes show photos of gold that aren't what they ship out in the mail.
This is most likely to happen when you work with an independent retailer who has no certification. eBay sellers and personal websites are common culprits that you should avoid.
That's why the #1 way to protect yourself is by working with reputable gold dealers.
The United States Gold Bureau is an active member of the National Coin & Bullion Association. We also are registered as an official Precious Metals Dealer with the state of Texas. Our team also has regulatory compliance certification and anti-money laundering compliance as outlined in the Patriot Act.
We're an NGC and PCGS authorized dealer, so you know you're not getting scammed.
Investing in gold is far safer when you do your research. Reputable dealers will help you avoid scams. They'll also go a step further and outline the types of gold investments so that you can find the right purchase for your needs.
Making the Most of Your Investment
Gold is a tangible investment. This means that it's something that investors can see and touch.
Because physical gold contains a high percentage of precious metal content, it can never lose the intrinsic value that it holds. This sets it apart from stocks that only have value because a financial organization has assigned it to them.
Unlike stocks, precious metals can't go bust. A stock is worthless if the company goes bankrupt, but precious metals have a wide range of applications in industries like consumer goods, jewelry, automotive markets, and manufacturing.
You'll always be able to sell it for something, which makes it a failsafe investment.
Figures that span decades back this up. Not only that, but they prove that gold is an investment that can greatly pay off. Based on past information, you'll be able to sell gold for way more than its initial purchasing price, making it not only a safe investment but a lucrative one.
In 1993, investors could purchase gold for under $400 per ounce. Today, gold is worth $2000 per ounce, which means that you can sell it for $1600 more than you purchased it for 30 years ago. This is a 400% return!
Gold is best used as a long-term investment rather than a short-term one. This gives it time to accrue more value.
Buy Gold When Geopolitical Events Begin
To get this high ROI, though, you need to invest in gold at the right time. Gold tends to be a safe investment during times when the economy is otherwise tumultuous. Geopolitical conflict drives economic uncertainty, and people want to buy precious metals because they always hold value.
Now is a great time to invest in gold. The Israel-Palestine conflict in the Middle East is causing a lot of economic uncertainty for people worldwide. Inflation appears likely, and tariffs and import fees will probably become more restrictive.
You'll be able to sell gold at a higher price to those who want a safe asset to hold.
Invest at the Right Time of Year
March is usually the #1 cheapest time to purchase gold. This is because the prices start to cool down throughout the spring and summer.
You want to purchase gold at this time to get the lowest possible price.
After waiting for years (or decades), you'll decide to cash out on your long-term investment. Gold prices are historically at their highest in November, December, January, and February.
Sell then. Buyers will be willing to give you more money during these times. This is a great way to make the most of your gold product investment.
Understand Costs and Fees
Both gold and silver have some fees that come with an investment. This is especially true for collector coins with numismatic value. You'll need to pay the price that the coin is worth in addition to the price of the gold content.
Bullion - coins and bars with no numismatic value - still have associated fees. Sellers want to turn a profit and will mark them up, especially if they were purchased in mint condition. These fees are both fair and unavoidable, but working with a reputable gold dealer ensures that they're just and equitable.
Physical gold also comes with other fees that you should keep in mind, namely storage fees. Unless you have a well-secured safe at home, you likely will want to pay a banking institution to store your gold in a lock box. Compare prices and choose a secure and trusted location.
Seasoned investors may feel confident buying thousands of dollars worth of gold at once. However, unless you're an extremely confident and experienced investor, you likely don't know the ropes. That's why beginners should always start small with their precious metals investments.
Purchase a 1-ounce gold bar and store it for several years. Sell it, turn a profit, and learn what to expect from the investment.
Then you can begin to make a bigger splash in the investing world. You'll feel comfortable making larger purchases, and you can hold onto them for longer. Saving your gold for several decades means that you'll be able to turn a hefty profit when you plan to retire.
Begin Investing in Gold Today
So, how do you buy gold safely? The #1 way to protect yourself and make a top-notch investment is by working with a reputable precious metals dealer. Experts will answer all your questions, provide you with extensive information on each piece, and discuss the ins and outs of making a purchase.
The United States Gold Bureau is committed to providing high-quality gold at a fair and affordable price. We're excited to help you diversify your portfolio wisely, so get our free precious metals investor guide online to learn the secrets of successful investors.