Friday 20 February 2015

How And Where To Buy Gold Bullion

By Olivia Cross


With the turbulent economy, diversification of our portfolio is the only way we can be sure to retain most of our assets in case of an economic meltdown. The ordinary classes of assets are categorized into four; the cash, securities, tangible assets, and real estates. Each category comes with its own level of risk and speculation. Unknown by many investors, there is another asset category that tends to perform better and defy ups and downs of the economy. This is the precious metal category. Wise investors use precious metals as a hedge against the inflation, deflation, and other economic risks. As a leading asset in the category of precious metals, the question of how and where to buy gold is a major concern for new investors.

The process of buying, selling, or even storing gold bullion is not hard. This is basically due to the fact that gold is a metal that is widely recognized in all countries and has a special place as a historical currency and tools of the trade. Its price is usually very stable. It is also an onshore and off balance sheet type of asset. As an investor, you can choose the bullion bars or bullion coins, each with its advantages.

Normally, the bullion bars come in 1 troy ounce, 10 troy ounces, and 15 troy ounces which are the standard sizes. They can also be available in 100 and 400 ounce bar sizes. In the same way, it is still possible to get smaller bar sizes that are less than one troy ounce in size from a few groups of dealers.

Normally, a small premium is included in the bullion price. This is to specifically take care of the cost of manufacturing the bar. The trick is to invest in a larger bar as this premium reduced with an increase in size of the bar.

The bar prices for bullion are usually inclusive of a small premium of the spot price. This is there to cover the cost of processing the bar. However, the larger the bar sizes the lower the premium price when measured in percentage terms. The most important factor is the background of the dealer you do business with. The dealer must be legitimate and only offer the bars that are fully refined by recognized manufacturers. This is the best way to be protected from counterfeits.

Notwithstanding this, as a financial specialist, be prepared to pay an assay charge that is carried out every time when buying or selling gold. If the assay is done, the authenticity and purity of bullion can be guaranteed.

The bullion bars are not by any means the only option available. The coin bullion offers the second alternative. The coins are simpler to purchase, exchange, divide and hold. The bullion coins are typically the legal tender and are issued by the governments of the said countries. This guarantees their face value, its purity, and even the content. They are available in (1, 1/2, 1/4, and 1/10 oz).

There are many dealers and coin collectors who are ready to sell bullion coins and bars. All that is required is a proper background check of the dealer you are investing with. The metals must have the highest level of fineness and your investment is only guaranteed if you invest in the right bullion.




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