With the current world economy weakening, many people are flocking to gold as a more certain investment than stocks or other commodities. One can go to a local gold dealer and buy gold coins, gold bars and gold bullion in person; however, the selection is often limited or on backorder.
Likewise, because gold dealers often buy their gold coins and bullion from other collectors and investors, the available stock may be scratched, tarnished or worn.
Furthermore, every gold dealer charges a certain amount of money over the spot price (i.e., market value) of gold in order to make a profit from the purchase; trying to obtain the lowest spot price can take a significant amount of time and effort if one is driving from one gold dealer to the next.
Alternatively, one can buy gold online and forego the hassle of finding gold dealers in person. There are many reputable online gold dealers such as the American Precious Metals Exchange (APMEX), Kitco Metals, and Blanchard and Company, Inc.
Online gold dealers typically have a much more extensive selection of gold than private gold dealers. Likewise, because gold coins, gold bars, and gold bullion are usually bought directly from national mints, they are in pristine condition.
In order to generate business, online gold dealers will often lower their prices over spot-on selected gold coins and other items; by signing up on a dealer’s email list, one can obtain instant notification of these discounts and deals and save money.
Not all gold coins are of equal value or gold composition. For example, the American Eagle is a gold bullion coin that contains 91.67% gold.
Because it is also considered a collectible coin, it often commands a higher price over spot than the Maple Leaf gold bullion coin, which actually contains 99.99% gold or higher. Other gold coins may have historical value, be marked as “first strike”, or be sold as part of a set. Such factors also significantly raise their price over the spot.
One should be careful about verifying that the online gold dealer is not part of a scam before buying gold online. To do this, one should determine if the online dealer is part of a trade association like the American Numismatic Association (ANA) or the Industry Council for Tangible Assets (ICTA).
Such associations require that members maintain a code of ethics regarding the sale and purchase of gold. Should association members be found in violation of this code of ethics, suspension or expulsion from the association is the result. A reputable online gold dealer should belong to at least one of these associations above. It is also a good sign if that dealer belongs to the Better Business Bureau (BBB).
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