Investment Advice – How To Buy Gold Bullion

Dec 17

Gold is currently one of the most popular investment options available, with both novice and experienced investors choosing this route.  Whilst the ability to quickly liquidate physical gold has always attracted investors, it is its stability that is the key draw in the current economic climate.  With traditionally secure investments, such as property, suffering in recent years, gold offers a more secure investment.  The fact that it is a finite resource, for which demand continues to rise, means that it will never suffer a serious drop in price.  In fact, although the price of gold can fall nominally for short periods, history has shown that long term it continues to increase.

If you are considering investing in gold, you might be unsure as to the exact process involved.  Well, hopefully we can help clear that up for you.

What forms does gold bullion come in?

Whilst it is of course possible to buy gold in a variety of item types, including jewellery and ornaments, for investment purposes, coins and bars are more common.  This is because it is easier to quantify their value, as there is no aesthetic value to consider.  The uniform shape also means that they can be easily stored and transported.  Whilst you are probably familiar with the large gold bullion bars that are commonly portrayed in the movies, it is possible to purchase them in smaller sizes, ranging from 1oz to 1kg in weight.

Where can I buy gold bullion from?

It is important to identify a gold merchant that has a good reputation.  Be sure to check that the gold has a purity of 99.9%.  Once you are happy with your choice of gold merchant, you can then place your order.

How do I take delivery of my gold?

Gold merchants will rarely keep any gold on site for security reasons.  You must therefore order your gold in advance, before making the payment.  When you order the gold, the merchant will agree a price with you, which is frozen for a set period of time, giving you chance to complete the transaction.   The gold will then be delivered to your property at an arranged time.  If you prefer to collect your gold in person, many gold merchants will organise this – providing you give them sufficient notice.

Anything else I need to consider?

It is important to ensure that you have the right insurance in place before you take receipt of your gold.  You should also look to increase security if necessary, with many insurance companies requiring that burglar alarms and safes are utilised.  Although your gold will be insured by the merchant during the transportation and delivery, it becomes your responsibility as soon as it is signed for.  Finally, if you intend to collect your gold bullion from the merchant’s premises, remember that as soon as you leave the shop, you are liable for its safekeeping.

Guest post provided by UK Gold Bullion.  If you are looking to buy gold bullion, visit their site for further information.