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How to buy Gold and Silver Bullion

Buying Gold and Silver Bullion

Gold and silver bullion commonly refer to bars rather than bullion finish coins. Precious metals merchants generally buy and sell both metals so it’s possible to buy gold and silver from the same place. There are certain distinct advantages to buying bullion. The most important advantage is the elimination of counterparty risk and taking control of one’s wealth. Counterparty risk refers to the risk associated with the promise of delivery from a third party. If you invest in gold company stocks, paper gold or other gold instruments, you open yourself up to these risks. Therefore, buying gold and silver bullion can be an excellent strategy to minimise risks and maximise returns.

Click here to download the FREE Insider’s Guide to Buying Gold and Silver Bullion

Knowing the spot price of gold and silver

The first step in purchasing gold and silver bullion is to know the spot price and how it works. Nowadays, it’s very easy to find out the prevailing spot prices of these precious metals. Most reputed online dealers and regulatory bodies like the LBMA display the spot price on their website. Since the spot price is a dynamically changing number, it will be displayed as a ticker. It’s important to understand that you will never buy gold or silver bullion at the exact spot price. When buying, you would likely pay a small premium, over and above the spot price. Similarly, when selling, the price you achieve will be slightly below the spot price. Researching the spot prices and knowing about the market is an essential first step to buy gold and silver bullion.

How to buy gold and silver bullion
Buying bullion coins can generate healthy returns

Getting to know a reputed dealer

Another important step in making the right investments in gold and silver is to go through a reputed dealer. Firstly, a high-street gold seller will not have a wide choice of products available to purchase. Secondly, making high-value purchases on the high street is usually a risky business. Check out the company’s track record and reviews before placing an order online. It may be worth calling them first to check their customer service. Larger bullion will be better value, but divisibility should also be a consideration.

How to buy Gold and Silver Bullion
Gold bullion bars carry lower production costs

At Physical Gold, every product we sell comes with a buyback guarantee. This assures customers that the gold bullion they buy from us is certified and genuine. This also makes a difference to buyers, as they can sell off their investments easily through the same dealer. It’s important to do your own research when selecting a dealer so that you can pick the right one.


Dangers of buying from Mints

Another way to buy gold and silver coins is to buy it directly from the Royal Mint. If you choose to buy non-UK bullion, there are other reputed mints in the world, like the Perth Mint in Australia, from where you may be able to purchase your bullion online through their websites. However, you may end up paying more for packaging and processing costs. Many reputed mints will also try to sell you proof coins. These are more polished and better looking and attract higher prices due to their finish. However, you must bear in mind that the gold and silver content remains the same. So, you are unlikely to receive a higher price at the time of selling, simply because they are proof coins. If your objective is to maximise your gains, you may be better off picking the right bargains from the secondary market through a dealer.

Get in touch with us to plan your gold and silver bullion investments

The economic crisis of the post-pandemic era has already started unfolding through the first half of 2020. Many investors are moving to precious metals in order to hedge their risks. If you are thinking of buying bullion, call us directly on (020) 7060 9992, to discuss your investments. We are certain you can benefit from the right advice. You may also reach our investment team through our website.


Image Credits: Tony Media and Pxfuel


Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.

says :

Hello Daniel! I’m absolutely agree with the statement that it is so significant to do your own research and select the trustworthy dealer. It is so frequent thing that people faces a lot of unreliable dealers who cheat them and sell non-certified gold bullion. To tell the truth, I have found myself in such situation. But, it is so tough to find the proper dealer and it is the huge problem. Likewise, it is so difficult to find the gold bullion without unjustified extra charge, but thanks to this article I’m aware of various ways how to make the right trades and how not to be deceived. It was truly helpful.

2021-08-04 08:36:55Reply

says :

It really helped when you said that researching can help you gather more ideas and information in the market. I recall my father telling me that he intends to purchase gold coins for investment purposes, and he inquired about the IRA account. Thank you for enlightening me on the benefits of learning, and I'll be sure to inform him that he may contact a well-known gold coin dealer in town, who can answer all of his questions.

2022-03-21 22:59:23Reply

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