Gold is an asset we talk about when crises are on the horizon. Culturally we speak of a “safe haven.” Since the end of 2021 and throughout the first half of 2022, the price of gold has been on the rise. Problem: how to buy gold? How to sell gold? It’s not common how practical.
We explain how to buy and sell bars and coins.
How Does Buying Gold Work?
Yes, buy gold in physical form, i.e., in bars or gold coins. The individual has no interest in buying, for example, a “nugget”; we are no longer in the time of the gold rush. Therefore, the solution is the gold coin to buy and sell gold.
Buying Gold, Selling Gold, How To Navigate?
Physical gold investment responds to a few rules and principles. It is often a mixture of knowledge of gold prices, ultimately like any financial asset (stocks, bonds, etc.) but also of mastery of elements of a tangible asset:
- the weight in gold: an ounce of gold, for example, is the equivalent of how many grams of gold?
- The quality of the gold coin: there is terminology for the quality of a coin that goes from FDC, corner flower to TB via TTB, SUP, and SPL.
- Heritage value: we are talking here about the history of the gold coin, its rarity, and possibly one or more design faults, which can considerably increase the value of a coin. Thus a Napoleon can have a value multiplied by 5 or 10 compared to its actual weight in gold or at the usual rate due to the rarity of the vintage or an error when striking a series (one letter less or a splinter).
Which Gold Coins To Buy?
Over the centuries, many countries have minted coins and gold coins. Still, some are more symbolic than others, for example, Napoleon for the French.
Legal tender coins such as the Krugerrand, Chinese Panda, American Eagle, Canadian Maple Leaf, Australian Nugget, British Sovereign, and Vienna Philharmonics have coins that fall into the excellent tax category metals.
So much for the types of products, you can refer to in the format you want. It should be noted that small pieces, such as the half Napoleon, saw their premium (and therefore their price) explode at the height of the crisis. Considering their lower cost, this is an excellent piece to have on hand.
Where To Buy Gold?
By deduction to sellers of gold coins. “It is advisable to choose a reliable intermediary, offering the best guarantees of security and transparency,” indicates this article on krugerrand.de. Given the price of gold, confidence is indeed the first criterion for choosing a gold seller.
Where To Buy Gold Bars?
“Avoid neighborhood pharmacies, temporary stalls, and online auction sites” yes! On the other hand, “Choose a bank, an investment firm, or a specialized broker” can be discussed by some investors.
Buy And Sell Gold On The Internet.
Unfortunately, as an asset increases, the agreement multiplies on social networks and some platforms. There are many opportunities to be tricked on individual-to-individual sales sites or large second-hand sales platforms. Go your way!
On the other hand, there are specialists in the sale of physical gold, established for a long time, who put forward a certain number of guarantees, including the traceability of coins and ingots. You will see if the company has its coffers audited and if it is well established.
Where To Keep Gold Bars And Coins?
There remains then the choice of the custody of this gold. Indeed, as its name suggests, investment gold is physical. It is not a line in a stock portfolio. So you buy coins, and ingots. They have values from a few tens of euros to several thousand euros. Gold coins are also quite fragile, and their value, as we have seen, also depends on their condition. It is, therefore, necessary to avoid handling them to prevent scratches or shocks. Finally, like any valuable object, it can attract the covetousness of burglars. They must therefore be placed in a secure place. A safe in the bank, for example. There may also be the choice not to “recover” his gold coins but to let them be stored in hyper-secure chests. Often, investing in gold is a very long-term investment, one or more generations. So leaving your coins safe in a safe away from temptations is a good solution.
