Buying gold online is a fairly simple process. In this article, we’ll show you everything you need to know about buying physical gold online in 2021.
It is hard to find an investor not interested in physical gold. Gold has long been seen as a valuable asset and is also prized for its beauty. Gold also has a strong reputation for being useful during a recession due to its stability.
Many see gold as a tried and true way to diversify a portfolio. Gold is a popular choice for those looking to the long-term, and for people who want a tangible asset they can sell off quickly.
The ease of conducting transactions on the internet has led many to become interested in different ways of buying gold online. A number of bullion websites sell gold bars, coins, and other minted products that are able to be delivered to a customer’s doorstep in several days in a secure manner.
Some choose to skip purchasing physical gold and instead use the internet to buy gold stocks, funds, or even gold-backed cryptocurrencies pegged to the spot price of the physical asset.
Multiple Ways To Buy Gold Online In 2021
- Physical Bullion: Purchasing physical bullion is the most well-known way to purchase gold online in 2021. Websites like APMEX or Provident Metals provide seamless customer experiences and offer potential buyers a wide range of bars and coins to choose from. Some opt to purchase physical gold in the form of jewelry. Some do not recommend this strategy due to the immense markup some retailers place on jewelry. Trying to scavenge for gold jewelry at an estate or yard sale can eat up a lot of time with little return.
Many people are aware of family jewelry that has least some value, or they will at least get an outside opinion before listing it for sale.
Overall, buying physical bullion remains the most popular method for buying gold online. Considerations for storage and security do come into play once shipments are delivered.
- Gold Funds: Investors who purchase gold funds do not actually own the precious metal. Instead, they own shares in companies who mine or process bullion, or in other gold-related assets. Gold funds are a popular choice for those who want to be involved with the gold market but are interested in skipping the actual storage and management process of physical gold. Gold funds also offer a degree of diversification to any portfolio.
- Gold Futures: Buying gold futures contracts means customers are making an agreement to purchase or sell a specific amount of gold at a date in the future. Futures are vastly more liquid than physical gold and give buyers another option to buy gold online. However, futures trading can quickly become complicated and is most likely not the best choice for beginning investors.
- Gold Stocks: Purchasing stock in a gold-mining company gives a buyer complete control. Some opt for companies that mine sustainably and with fair ethical practices. Others might speculate with companies hunting for gold in areas that have not been mined before. Purchasing stock in gold companies is optimal for those who would like to know what specific companies they are putting money in.
Consideration When Buying Physical Gold Online
Those interested in purchasing physical gold online should always know the spot price of gold. Most reputable websites will list the spot price of gold in a format that updates automatically.
Knowing the spot price helps buyers understand the markups certain websites are placing on physical gold bars and products, especially if the bullion is less than an ounce. Smaller denominations of gold will often have higher markups, which might not make them an advantageous investment.
Potential buyers should study customer reviews and news about companies they are looking to purchase gold from. Good reviews are a sign that operations are running well.
For long term investment value, buyers should opt for bars branded by Internationally recognized companies, like the Perth Mint, PAMP Suisse, Umicore, and Metalor. Gold bars from these institutions are accurately stamped with weight, purity, and registration number to ensure authenticity.
Buying from a trusted brand protects the value of an investment and helps with resale. Purchasing certified or graded gold coins is another way to invest in gold while receiving guarantees about authenticity.
Above all, buyers of physical gold should take care with deliveries. They should ensure shipments are properly packaged and insured, or sent to a secure location for pickup if the order is large.
Buying Gold Online In 2021
There are several methods to purchase gold online. Physical bullion remains the most popular way, but some investors choose gold stocks, futures, or even gold-backed cryptocurrency to buy into the precious metal.