Investment gold is becoming more and more popular among individual investors. The reasons for this is the overall improving economic situation, low interest rates offered by the banks. Thanks to the growing number of competing companies on the market, as well as the comfortable possibility of buying gold via the Internet, physical gold has become seamlessly available to all investors from all over the country. In this article we cover why it is good to invest in physical gold.
Virtual gold – is it worth it?
By virtual gold we mean trading platforms where you can buy and sell gold contracts, without owning actual gold. These service providers are often compared to betting sites where you bet if the price is going to rise or fall. These sites are meant mostly for day-traders, who want to enter and exit trades fast. They are not investors, they are traders, they speculate on a daily basis. With trading the losses can exceed your initial investment, so in most cases these sites are not for investors.
It is worth considering this method if we invest in the short term, because we can minimize the main disadvantages of the system, i.e. the risk of liquidation of the company in which we invest funds and the inability to resell our gold at another dealer and maximize profits from lower commission in such purchases. It is also worth mentioning virtual gold does not give anonymity appreciated by many investors. You can not make such an investment for cash, and when making such transactions, trader/investor remains in the broker’s systems.
- Lower commissions
- The possibility of investing a multiple of your funds
- Leverage up to 1:500
- Easier to liquify your money
- Open positions both sides – short and long
- No influence on the dealer’s situation
- You don’t own actual gold, you open a gold position
- No influence over the gold you have. You can not sell to another dealer.
- A much higher investment risk when investing in virtual gold.
- No anonymity
- Losses can exceed your account balance.
How to buy physical gold?
As a rule, investment gold can be bought in two ways – order online and receive a courier parcel or buy directly in a stationary store.
When choosing, you should be guided primarily by your comfort and delivery time. You should ask yourself questions like, do you want to see and touch gold products before you make a purchase or are you more interested in convenience.
In many stores you can not receive orders immediately, and some online stores even offer delivery within 45 days, requiring payment on the day of order. These stores most probably do not have physical stock and they are just middleman. Therefore, we recommend buying where you get the gold immediately, or it will be sent out within 24 hours. Time is money!
At Tavex AB, we send out gold the same day and it will be delivered to you in 2-3 days, depending your location in the country.
Where to buy physical gold on the internet?
Despite the likely concerns about the security of the transaction, the purchase of physical gold via the Internet at the appropriate dealer guarantees a good price and quick execution of the transaction.
+We always recommend to choose a dealer who sells and also buys back gold products.
+We recommend to choose a dealer who has been in business for a long time.
+We recommend to choose dealers who offer insurance for products ordered online.
+We recommend to choose a dealer who sends the package the same day or day later.
+We recommend to choose a dealer who also has a physical shop.
+We recommend you to do your own research.
-We don’t recommend to buy gold from websites where delivery time is longer than a week – unnecessary risk for the buyer.
-We don’t recommend to buy gold from websites where there is vague or no information at all about the company
-We don’t recommend to buy gold from websites, which does not hold any stock by themselves.
First things first. When buying gold online, it is worth checking the dealer in a few ways. The first issue is whether the company offers gold purchase and at what prices. Of course, you can later re-sell the purchased gold in any other company, but the lack of repurchase offer is bad for the seller. Another aspect that is worth checking out is the dealer’s opinions on the Internet – there are many portals and websites on which opinions about online stores are placed – good gold dealers are also presented on them. The structure of the company that offers us gold is also important. Whether it belongs to a larger capital group and whether it is a direct distributor of the gold offered. Gold dealers can be usually checked from the webpages of mints that produce bars or coins.
Where to buy gold on location?
Purchase of physical gold from physical location is usually the preferred form of buying investment gold. This is due to several reasons:
- The ability to check the order
- The possibility of cash payment
- Consultation with an expert
- Privacy and anonymity
When some people prefer buying online for quick purchase and convenience then other people prefer to shop in a physical store where they can see and feel the products and also leave the shop with the product – fast deals. The basic issue of choosing where to buy gold from a shop, is the price. We recommend to check different dealers and see who offers the best prices. Most dealers offer discounts for larger purchases as well.
When company has a large stock it shows that they also believe in investing at gold and also they have invested more into it so they could serve customers ´´over the counter´´ and offer fast services.
What is the most effective way? Our experience shows that it is best to pay for the gold by bank transfer, Trustly or cash in the branch.
Paying in the branch
*Cash – gives you anonymity if wanted
*Card – Convenient way to pay – no anonymity
Trustly – the easiest way to pay via bank.
Credit/Debit card – also a convenient way to pay
Invoice – We send invoice, customer pays, products are sent out.
What form to buy gold in?
First of all, remember that the most valuable are bars and coins. The bigger the product, the lower the spread price. This is because it is harder and more costly to produce smaller coins and bars.
When it comes to the difference between bars and coins, you can choose one of them at your own liking. Most popular bars and coins have similar spreads.
*Advantage of coins: lower spreads and easier to check the truth of the coin
*Advantage of bars: better price per gram (especially if over 100 grams)
The purchase of physical investment gold is a perfect complement to the portfolio of every investor. It provides good insurance for the portfolio in the event of significant changes in the economy and is one of the most liquid assets.