Where to Buy Gold Online?
21/05/2023Daniel Fisher
With gold appealing as inflation climbs, buying online allows locking in physical holdings or securities without leaving home. Buying gold online offers efficiency and convenience but choosing the right platform is crucial to ensure it provides the most appropriate solutions to meet your objectives, at the best possible prices, and in the most secure way.
As expected in today’s ever-evolving online space, a vast array of web-based solutions exists, targeting a variety of niches within the gold space. Some options will be geared towards physical coins or bars, several aimed at active gold traders, while others cater for those seeking gold as gifts. So where should gold buyers turn to in cyberspace?
Comparing The Best Places to Buy Gold Online
This table illustrates the various attributes of different online gold buying platforms. Deciding where to buy gold online should start with understanding which type of portal will provide the best fit for your gold buying ambitions.
Type of Online Seller
Offers Physical Delivery
Potential Risk
Premiums
Choice of Bars/Coins
Investment Focus
Gift Focus
Royal Mint
Yes
Very Low
High
Medium
Low
Very High
eBay
Yes
Very High
Low
High
Low
Medium
PhysicalGold.com (Specialist Online Dealer)
Yes
Low
Medium
High
High
Low
BullionVault (Peer-To-Peer Platform)
No
Low
Low
Low
High
Very Low
Gold ETF Platform
No
Medium
Low
Low
Very High
Low
Let’s take a look at those five categories in more detail.
1. Buying Gold Online Safely From Mints
Established mints like the UK’s Royal Mint offer direct online ordering of gold coins and bars through their websites. The obvious comfort is that authenticity and purity are guaranteed, removing the risk of buying counterfeit gold. If direct physical ownership of gold is desired rather than electronic methods, then there’s no better peace of mind than sourcing directly from a government mint.
Their website offers not only bullion coins but also a wide variety of collectable coins and sets. Presentation boxes, accompanying literature and limited issue productions are ideal for collectors or those wanting special gifts.
But the flashy packaging and specialist proof finishes command significantly higher premiums. While the tourist, collector or gifting markets may tolerate inflated prices, this online method doesn’t offer value to gold investors.
In fact, even buying standard gold bullion coins such as Sovereigns directly from the Royal Mint is usually more expensive than sourcing the same products from specialist bullion dealers. Investor choice is also limited. The Royal Mint don’t sell gold produced by 3rd parties, have a very limited choice of gold bars, and have only dipped their toe into the pre-owned coin market.
Customer service can be far less personal due to the Mint’s size and there is limited purchasing advice and post-sale support.
Summary
The go-to option for beautiful presents and for those concerned about counterfeit gold. But high premiums, limited choice and lack of investment guidance is less suitable for investors.
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2. Online Gold Buying From General Ecommerce Platforms Like eBay
eBay and other large online marketplaces certainly offer convenience for buying gold coins or jewellery, but lack authenticity vetting and protections for buyers.
Bargain gold hunters must beware sophisticated counterfeits flooding consumer platforms promising too good to be true steals. Fake packaging further tricks the unwary. Unless advanced authentication skills allow spotting sly alterations, buyers risk receiving gold-layered tungsten mocking the real thing.
eBay’s buyer protection coverage provides some recourse against overt scams, but burdensome processes await victims, especially with precious metals sales exempted from guaranteed refunds. Class action lawsuits also allege big name dealers on eBay and Amazon frequently peddled fraudulent rare coins to trusting retirement savers seeking portfolio diversification.
While the universal reach of such consumer networks creates choice, buyers should inspect seller histories, credentials, certifications, and independent rating verifications prior to wiring significant savings without recourse.
In addition to these concerns, PayPal fees are high on sites like eBay and once these costs have been built into the buying price, it’s no longer a great deal.
Summary
eBay and similar platforms can offer vast reach to help collectors locate difficult to find gold coins. While they may appear convenient, counterfeit risks run high while sellers offering true bargains remain the exception, not the norm.
3. Buy Gold Online Reliably From Specialist Bullion Dealers Like PhysicalGold.com
The quality and trust-worthiness of online bullion dealers can vary greatly. Prices, service, options and accreditations should be investigated when choosing a reputable online gold dealer. If an online dealer doesn’t display explicit and up-to-the-minute pricing on their website, then they’re hiding something.
Best of breed dealers such as Physical Gold will offer a specialist service for keen online gold buyers focussed on making a profit from their purchase. This may include recommendations and guidance on the various options and access to discounted gold in the secondary market.
Peripheral services can include storage vaulting, buyback guarantees and supplementary ways to buy gold such as through a pension and regular monthly savings.
Premiums on world-renowned gold coins and bars will be lower than dealing with mint’s direct and customers will have the choice of new and pre-owned gold, all weights of bars and coins, and products from a wide variety of the world’s top mints and refineries.
Service levels and customer support can also differ between dealers, but buyers should be able to access a human to answer questions far quicker and more easily than dealing with Royal Mint or when dealing with securitised gold buying like ETFs.
Summary
With the right online gold dealer, those wanting low premiums and physical ownership of gold are most suited to buying online from a specialist gold dealer. Their expertise can help buy gold online tax efficiently as a long term investment.
4. Cyber Gold Buying Via Peer-to-Peer Platforms
Peer-to-peer bullion platforms provide an online marketplace directly connecting gold buyers and sellers looking to capitalize on market price movements. Rather than transacting through intermediaries, account holders purchase vaulted gold stored collectively then trade fractional interests in these pools with other individuals on the exchange.
Daily trading among the network allows capitalizing on gold spot price volatility even with modest individual investment capacity. Platforms handle storage, security and insurance on investors’ behalf to streamline the physical holdings side of trading. Some also offer integrated debit cards for converting fractional holdings to local fiat currency withdrawals when sought rather than outright metal redemption.
By pooling investor bullion, peer-to-peer exchanges create ample liquidity for convenient positional manoeuvres online that small individual accounts would struggle replicating independently. However, investors should vet each platform’s governance and transparency rigor around auditing procedures and member vetting before trusting assets to pooled accounts.
Summary
Overall, reputable peer-to-peer sites allow traders and investors to benefit from low margins and online transparency. They’re not the best place to buy gold bullion if investors want physical possession of gold or those seeking particular coins or bars.
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5. Buy Securitised Gold Online in the Form of ETFs
As exchange-traded funds, gold ETFs trade through brokerage accounts like stocks, offering liquid and tax-efficient gold exposure without physical ownership inconveniences. Giant issuers like SPDR Gold Shares closely track gold spot prices, replicating performance to the upside and downside. Holding the ETF means indirectly owning interests in physical bullion stored by custodians on the fund’s behalf.
The ease of buying and selling daily without taking delivery suits short-term traders and long-term strategic accumulators alike. Tiny expense ratios of 0.10-0.40% prevent premium erosion over extended holds. Some brokerages even enable trading gold ETFs commission-free now alongside stocks and funds, further bolstering the cost proposition.
However, despite fractional claims on huge troves of allocated gold proxying for direct ownership, logistical constraints could hamper converging ETF units for physical redemption coins during extreme crises given aggregated holdings. Still, for most investors, liquidity and tax efficiency merits outweigh far-fetched systemic risks. Just know what you own and don’t own when opting for brokerage custodied interests over outright control.
Summary
Buy gold online cost-effectively with recognised money managers such as BlackRock and Vanguard. While ideal for buyers happy not to take physical delivery, ETFs come with risks.
Conclusion
Analyzing advantages like product range and liquidity as well as drawbacks like fees and risks equips buyers to best leverage provider competencies when allocating across vehicles. Staying informed guards against missteps amid exciting online gold access expansion.
While risks abound in the online wild west, applying sound due diligence in choosing dealers committed to transparency, ethics and security allows safely tapping internet efficiencies rather than dusty old coin shops. Just mind the details before transferring hard-earned money!
Related Questions To Online Gold Buying
Is it good to buy gold online?
Buying gold online offers the ability to buy and sell gold 24 hours a day, enabling flexible timing to exploit price dips, whole online choice provides ease of price comparisons. Dangers of buying online include purchasing fake gold and limited customer service.
Is online gold legit?
Online sellers should be researched and vetted closely to ensure that gold is legit. Avoid buying gold through eBay and only buy directly from mints or specialist bullion dealers with a track record and accreditations.
How much gold can you buy online?
There is no specified limit to how much gold you can buy online. ID checks will be required if buying more than £10,000 of gold online in the UK to satisfy anti money-laundering rules. Check that gold can be delivered internationally before buying from overseas websites.
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