The Cheapest Type of Gold to Buy As mentioned above, gold bars generally have the lowest premiums over the spot. The premium is the cost above the fusion value of a gold item. You could think of the premium as a surcharge. In general, the best deals on gold coins can be found on large retail websites that sell gold and silver coins and bars.
The price per ounce decreases if you buy in bulk. By buying professional Good Delivery gold from the marketplace, you will save at least 7% of the cost of small coins or bars. And when you sell, you'll also get the best price, because Good Delivery gold is the only gold you can easily sell in professional markets around the world, where sales prices are higher. Gold coins, such as the American golden eagle or the Canadian maple leaf, are popular collector's items.
This collector's aspect means that you'll pay a premium over what you'd pay for the same amount of gold in the form of a bar. In addition, coins tend to have a lower gold content than gold bars. A one-ounce American eagle coin, for example, is only 91.67% gold. In fact, the coin weighs 1.1 ounces, approximately one ounce of which is pure gold; the rest of the weight is silver and copper.
Jewelry, especially old pieces that are likely to have a higher gold content, can provide another avenue to buy gold. While no one can predict what will happen in the future, or even tomorrow when it comes to the price of this commodity, gold is still a good investment. You'll want to make sure you have as much documentation as possible so you can attest to the quality of your gold when you resell it. But just like with any other purchase, you want to make sure you get the most out of your money when buying gold.
The transaction costs associated with gold ETFs are usually lower than the costs associated with buying, storing, and insuring physical gold. Gold is fairly easy to buy, but prices vary widely, as sellers include the desired profit margin plus additional costs, such as authentication, shipping and handling certificates and payment processing fees. If you want to add that extra layer of security, you should consider investing in gold, silver, and other precious metals. Gold funds can track the price of gold, include the shares of various gold mines and refineries, or offer exposure to gold futures and options.
The main reason gold rounds aren't the cheapest way to buy gold is because they're not as popular, so private mints don't sell enough rounds to lower the price. But if you want a little bit of that golden glow in your investment account, try to make it occupy only a small percentage of your investment dollars. In contrast, the Canadian gold maple leaf one-ounce gold coin is popular, well-recognized and comes from an official government mint. You don't deposit your gold or transfer it to us, you're paying a custodian to keep it, which is fundamentally different in the law of depositing with a bank, and is immensely safer for you.
If you want to buy gold, you don't have to convert your dressing room into a small Fort Knox. While taken together, these costs may not significantly affect someone who wants to invest a small portion of their portfolio in gold, the costs can become prohibitive for investors looking to gain greater exposure.