The growing number of Americans becoming more money
conscious and asking the question how do I buy gold, the wealth of information
available to investors today has kept up with the growing demand for gold,
making the process of purchasing gold much easier today.
One factor you will want to consider before making a gold
purchase is what level of liquidity you want to own. There are many ways to
acquire gold and many forms, some of these forms include coins, bars, or ETF’s.
Each of these different forms is going have a different level of liquidity and
differ in the way they are exchanged.
To answer the question how do I buy gold in the most simple
and basic form is to invest in gold. There are several reasons why an investment
in gold coins is most advantageous to you over the other forms of gold
investments. One of the most advantageous things about gold coins is that you
can easily liquidate the value of the commodity at any time. Because gold can
be melted down to its purest form and weighed against its market value, the
shape or form of the coin does not bear any consequences to the investor.
A lot of investors are attracted to gold bullion bars
because of their larger weight and volume over coins. Bullion bars can be held
and stored by the owner but are most often times held in escrow due to its high
value. Gold bullion bars can be melted down into its purest form just like
coins can, however you run the risk of obtaining gold that is not 100% pure and
therefore contains traces of other elements.
Another way of buying gold is through Exchange Traded Funds
(ETF’s) but this form of gold investment is a little more involved than the
other two ways we already talked about. Owning gold through an ETF is a fairly
new way of owning gold but is similar to the others in that it is held in
escrow. ETF’s are similar to government bonds in that they are a certificate that
signifies an equal amount of gold. Banks that issue these certificates will
later buy them back at the current market price.
Each investment option has some intangibles, especially when
an individual is acquiring about buying gold. Examples would include, when
buying coins that the edges have not been filed down and that the coin weighs
the correct amount. With bullion bars you will want to make sure that the
weight and inside samples of the bar are tested for absolute purity. A broker’s
fee is usually required with a purchase of an ETF and it is not as easy to
liquidate as coins.
Probably the best answer to how do I buy
gold would be to find a reputable dealer who can help you along the way and
deter you from any problems that come with purchasing gold coins, bars and
ETF’s.
