How To Buy Gold
Learning how to buy gold and other precious metals can feel like a journey for some. How much of one’s savings should be in gold and silver? What types of gold to purchase (coins, bullion, bars, other)? These and other questions relating to the purchase of physical precious metals are all important.
But why even bother with physical gold when so many other investment opportunities exist? Because gold is the ultimate monetary insurance policy. No other asset offers the same level of security, privacy, and liquidity. The value of gold is determined by the free market and does not depend on governments, banks, or stock markets.
Countries around the world face unprecedented levels of sovereign debt, and this balance will come due. However, governments like the United States are obsessed with just one solution to their debt problems: currency debasement, also known as inflation. The US is on autopilot towards the permanent destruction of the dollar with its inflationary monetary policies. Buying gold is one of the best and easiest ways to protect yourself from that destruction and grow your wealth at the same time. Click here to learn the ABC’s of buying gold.
Buying Gold Coins is Perfect for New Investors
Buy Gold Bars – The Most Affordable Gold Option
The ABC’s of How to Buy Gold
1. Is gold a good investment for me?
The classic example: one ounce of gold would buy you a nice suit of clothes 100 years ago. Today, an ounce of gold will still buy you a nice suit of clothes. Dollars, on the other hand… We all know that a dollar can’t buy the same things it did when we were kids, let alone a century ago.
So if you’re socking away funds for retirement, why save in dollars? The US dollar is consistently losing purchasing power. Plus, in today’s banking environment it can actually cost money to keep your savings in a bank account. Gold is one of the best ways to ensure the 100 dollars you have today will hold its purchasing power decades into the future.
SchiffGold and Peter Schiff generally recommend keeping 10-15% of your savings portfolio in gold and silver. You don’t have to be extravagantly wealthy to buy gold – anyone who has started a nest egg can allocate a portion of it towards the yellow metal.
For more information about why people invest in gold:
2. What kind of gold should I purchase?
If you buy gold for the right reason – as a long-term savings vehicle – then you want to buy the best-known bullion products for the lowest possible prices. Fortunately, the best-known products are usually the best-priced options. They are relatively common and their value is determined by their weight, not erstwhile values like rareness or collectibility.
There are thousands of gold products on the market, but the list of well-known bullion products from reputable mints and refineries is short. Generally, you want to buy gold coins or bars from one of the major national mints or larger private refineries. You will notice these are the only products we feature on the SchiffGold website. (Read more about our product policies here.)
Gold bars are often the least expensive form of bullion and are perfect for large purchases. They’re often easier to store and ship. 1-ounce coins are probably one of the most common and instantly recognized forms of gold. Coins allow investors to buy batches of gold in smaller increments (though there are also 1-ounce bars). Coins can sometimes be more convenient to liquidate, since you can sell off your gold savings one ounce at a time, rather than finding a buyer for a large bar of gold.
When it comes to coins, each major national mint has a flagship coin that is known and trusted around the world: Canadian Maple Leafs, American Eagles, Austrian Philharmonics, Australian Kangaroos, and South African Krugerrands. These mints also produce bars in a wide range of sizes.
There are also several large private refineries in the United States that make top-notch, world-renowned products, such as the American Gold Buffalo coin.
Gold Canadian Maple Leaf Coins
For first-time buyers, SchiffGold often recommends starting with Gold Maple Leafs, produced by the Royal Canadian Mint (RCM). This is consistently the lowest-priced, highest-quality gold bullion on the market. In fact, it is the most popular gold coin in the world – everyone loves Maple Leafs and the RCM has a sterling reputation for quality.
For more information on which products are right for you:
- Our free special report, Classic Gold Scams, is a must-read for first-time gold buyers. It warns you which products to avoid when buying precious metals:
- SchiffGold’s Guide to Tax-Free Gold & Silver Buying will help you plan you understand the tax and reporting requirements for both buying and selling gold:
3. When is the right time to buy gold?
When should you buy gold? Now. This is very much like asking, “When should I start saving for retirement?” If you are already saving for retirement, then you should allocate some of your savings to the yellow metal.
Gold is currently in a long-term bull market – its price is trending higher and higher over the long-term. It’s not practical to quibble over the day-to-day spot price. Some investors try to “time” the market and buy when the price of gold seems low. While they might succeed in making a short-term profit, they’re missing the bigger picture. If you’re going to keep your gold for many years, it won’t make a difference if you buy now or wait 6 months. If you have a long time horizon, history shows that gold will hold its value.
That said, we are living through unprecedented economic times. Gold investors could realize huge profits. Learn more about this in our free special report: Download SchiffGold’s Free White Paper: Why Buy Gold Now?
4. How do I buy gold from a reputable dealer?
New investors often hesitate to buy gold, because they’re not sure who they can trust. Should they buy gold online or should they buy gold in person?
The answer is simple: Buy gold wherever you can get quality bullion for the best prices. Many people shop at local coin stores to buy small amounts of gold at a time. Your local shop will likely have many of the products we’ve listed above, or they should be able to acquire them for you.
However, if you’re planning to buy gold in a larger amount, you’ll want to work directly with a gold dealer such as SchiffGold. We can acquire any bullion product at the best possible price in larger quantities. Shipping is easy, safe, and often free. Often we can beat the prices of your local coin shop because we don’t share the overhead costs of a brick-and-mortar retail space.
The point is: Once you’ve decided to buy gold bullion which bullion products you want to buy, you’ll want to find someone selling them as close to the spot price as possible. The spot price varies throughout the business day and tells you the current market price for 1 troy ounce of gold. You can watch the live price on our site here.
The price over spot varies with each product and the current market demand. With gold, you shouldn’t pay more than 2-5% over the spot price for high-quality, 1-ounce bars or coins.
When you’re in the process of purchasing a product from a dealer, you will “lock in” the spot price at which the dealer agrees to sell the product. If you’re shopping in-person, you then pay for the coin or bar. If you’re shopping with SchiffGold over the phone, we lock-in that purchase price while your payment is processed via bank wire or even personal check through the mail.
Depending on the size of your purchase and the method in which you’re paying, you may want to consider the tax and reporting ramifications of your transaction. Learn all about that in our free report: SchiffGold’s Guide to Tax-Free Bullion Buying. Free Download: SchiffGold’s Guide To Tax-Free Gold & Silver Buying
5. What do I do with the gold once I have bought it?
Store your gold somewhere safe. There are different philosophies about this and each has valid points:
• Safety deposit box or bank vault. Some investors prefer to keep their gold in a professional bank that can provide top-notch security. A safety deposit box lets you keep a smaller amount of gold in a private box. Vaults are often shared with other people and are better for larger quantities of gold. However, remember that these services charge yearly fees, so there is a constant cost to this storage method, which makes it less practical for long-term storage of smaller amounts of gold.
• At home or in personal possession. Many investors do not trust their gold in a bank. In addition to the regular cost, there are fears of seizure by the federal government or the bank itself if there is a financial crisis. Keeping your valuables in a quality home safe is an excellent option. Many investors store their gold in secret places in their home or on their property that nobody knows about. The classic “hole in the ground” may be more common than you’d suspect. This is the most inexpensive way to store gold.
• Internationally. Other investors don’t want their gold in the United States at all. There are many trustworthy international vaults where SchiffGold can help you to deposit your gold. Click here to learn more.
6. Other common questions
SchiffGold Product Policies
Type of Product
We recommend that serious investors buy gold and silver in only the form of bullion coins and bars. Within that category, buyers are wise to stick with industry standard, nationally-minted coins: American Eagles and Buffalos, Canadian Maple Leafs, Australian Kangaroos, and South African Krugerrands.
Many of our competitors push exotic or commemorative coins, which are sold to unsuspecting investors for 25-30% commissions over the price of the metal they contain. In general, these products are terrible investments and should not be considered if you are looking to protect your savings from inflation.
In gold, we recommend buying these types of products: 1-ounce and fractional gold coins, 1-ounce bars, 10-ounce bars, and 1-kilo bars.
In silver, we recommend buying these types of products: 1-ounce coins, 1-ounce and fractional rounds, 10-ounce bars, and 100-ounce bars. We also recommend junk silver – US quarters, dimes, and half dollars that were minted prior to 1964 and are 90% silver by weight.
While we do not recommend or sell rare or collectible coins, we have access to any and all gold and silver products that might interest you. If you are looking for products not listed on our website, we can usually offer them at prices far below what our competitors would charge. Call us for more information: (888) 465-3160.
Our prices are among the lowest in the business. Owing to the size of our business, we are able to purchase at the steepest discounts and pass the savings along to our customers. We will work hard to earn your business.
In addition to excellent pricing, we provide diligent and attentive customer service. Our clients enjoy exclusive access to Peter Schiff’s insights and recommendations. We custom-build an experience that is suited to your needs. This is what sets us apart from the competition.
We do business the old-fashioned way: providing individual service with a real person. We do not offer online purchases. Many online companies rely on deceptive pricing, hidden costs, or worse. Our prices are transparent and total. Call us at (888) 465-3160 to learn more about how we can help you to buy gold.
Honesty and fair dealing are the hallmarks of SchiffGold and Peter Schiff. We look forward to earning your business.
Why We Don't Sell Numismatic Coins
We have nothing against collecting numismatic coins for aesthetic or hobby reasons. However, if you want to buy gold, we argue that for two critical reasons numismatic coins are generally poor investments.
First is the mark-ups or commissions. It is not uncommon to see mark-ups of 20% to 35% on numismatic coins. That means that the price of gold has to appreciate by 35% before you break even on a sale.
Would you buy a stock if your broker charged you a commission of 35%? We have our roots in the securities industry, where commissions are far lower, which is part of why we do not sell numismatic coins.
In addition, selling little-known, unusual, or exotic coins may be difficult, or you may have to sell below the market value of the metal. Unless the dealer has an immediate need for the coin you purchased, he may be reluctant to repurchase it from you. In contrast, bullion coins are a fungible commodity for which there is always a ready, liquid, and transparent global market.
Reliability & Integrity
The precious metals field is completely unregulated. Dealers of dubious reputation are not uncommon, as are investing schemes that sound good but are often rigged to bilk unsuspecting buyers.
In times of economic uncertainty, shady operators take advantage of the urgent and emotional demand for precious metals by jumping into the marketplace. In such an environment it is incumbent on consumers to buy gold only from trustworthy companies.
Peter Schiff is Chairman and Principal Owner of SchiffGold. Over the years, Peter has developed a sterling reputation as a no-nonsense straight shooter who zealously guards his public image.
Time and again, Peter has shown his in[yasr_overall_rating]tegrity by telling the truth, often at the expense of popularity and potential business. His specific goal with SchiffGold is to bring honesty, integrity, and fair pricing to the business.
Liquidity is an important factor when you buy gold and silver. There will come a time when you want to sell your metals. Since we only work with recognizable, highly liquid bullion products, you can sleep easy knowing that the metals you purchased can be easily sold.
Liquidity presupposes a fast and efficient market, which may not exist for so many of the numismatic and exotic coins that are offered by our competitors. Often, the only buyer for your collectible coins may be the dealer from whom you bought them. This is not an ideal situation.
SchiffGold stands ready to help you buy gold or sell your precious metals. We stand behind everything we sell and are happy to buy back any gold or silver product that you’ve purchased – whether you bought it from us or not.