How to Buy Gold & Silver Bullion
Gold and silver bullion can be bought in the form of coins and bars. Gold and silver bullion coins are valued according to the weight of precious metal in them. This distinguishes them from rare coins, which are priced based on condition and scarcity as well as on weight. The prices of bullion coins change daily. You can find the current prices of gold and silver as commodities at Quotes.ino.com, PCGS.com or Kitco.com (see Resources section) to get some idea of what bullion will cost.
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Instructions
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Learn about gold and silver bullion. There are a large number of bullion products besides the commonly traded gold or silver U.S. American Eagles, Canadian Maple Leaves, and the South African Krugerrands. There are coins and bars from many countries, in various weights; some are sold in bulk rather than individually. Find out which coins and bars are provided with certificates of authentication.
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Evaluate bullion sources. Consider both "brick and mortar" stores in your vicinity and online dealers. See whether the source claims to be a member of a professional organization, such as the Industrial Council for Tangible Assets. Check for any complaints concerning the dealer with the Better Business Bureau in the city where the source is. Find out, if you can, how long the dealer has been in business. Learn whether the dealer will allow return of your purchase within a given period of time if you are not satisfied. If a buyback is promised, be as sure as you can that the dealer will honor it.
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Determine the conditions of sale if you are buying online. In addition to the quoted price, there might be added charges for postage, insurance and possibly a sales commission. When you place an order for bullion, it is likely that you are agreeing to buy and the dealer to sell at the price in effect at the time your payment is received. The fastest--and recommended--way to pay is to send a bank wire. Sending a cashier's check, money order or personal check could delay the transaction two to three weeks, during which time the price could change.
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Purchase the bullion you have decided to buy from the source you have selected.
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Tips & Warnings
Some dealers might require a minimum purchase.
Do not buy bullion coins at rare-coin prices.
References
Resources
- Photo Credit coins image by Maria Brzostowska from Fotolia.com
