When investing in gold, particularly for the first time, it is usually best to work with an established broker who has a good amount of knowledge and can advise you on the best options for your requirements. If you haven’t worked with a broker before, here are some tips and advice on how to get the most from their services.
Check their reputation
The gold market is incredibly competitive and there are hundreds of
brokers out there all offering similar deals and services. Before going with a broker, it is always best to make sure you do some research on them first, to make sure they’re the right company for your needs.
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A simple internet search will tell you everything you need to know about them, including their videos, ratings and reviews so be sure to shop around before making any decisions. Different brokers will also have different levels of knowledge and expertise, so it is always best to shop around before settling on the right one for you.
Be aware of hidden costs
All brokers need to earn a living, and to try and get customers through the door they often advertise deals that seem a little too good to be true. For example, they might offer very low prices or super quick delivery times. Always be careful to check there are no hidden costs when using these brokers services as they will often charge extra for insurance or for shipping the item in order to make extra money.
Research the area you want to invest in
Most investors have a specific idea of what they want to invest in and will have their own personal reasons for doing so. For example, some investors might prefer to invest in gold coins if they have an interest in numismatics, whilst others may prefer to invest in gold bars as it makes it easier to purchase gold in large amounts.
Why Does This Matter?
In order for a broker to provide you with the best possible service, it is important that you research the area you want to invest in and understand any pros and cons and risks that apply to the products you want to invest in. For instance, if you plan to invest in gold bars, you may want to know how much it costs to store them.
Check the Spread
One thing you should always check before buying or selling gold from a broker is the spread price. This is the difference between the price they buy the gold for and the prices they sell the gold to you for. The price they buy the gold for will always be lower than the price they pay for purchasing gold from you. The spread can vary greatly from broker to broker so it’s important that you’re make sure your getting the best possible value from your investment.
Commission Charges and Administration Fees
A lot of gold brokers charge commission fees which vary depending on which establishment you go to. This is something you should consider before working with a particular broker. You also need to be aware that administration costs will factor into any deal you make, so be sure to check these prices as well. Administration costs can relate to any number of factors including storage as well as postage & packing.
Working with Physical Gold
One of the main benefits of buying and selling gold through an experienced broker as opposed to just your average dealer is that they tend to have a greater degree of market knowledge and can advise you on the best options for your particular needs. Physical Gold has been established since 2008 and have many years of combined experience in investment gold. For more information on our broker services, please contact us on 020 7060 9992.
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