Buying gold is often seen as an art. Seasoned investors know the market and are experienced in capitalising on experience. It’s no secret that buying gold is a shrewd investment with long-term benefits for both collectors and investors alike.
If you’re new to the market, knowing how to buy gold may seem like a daunting prospect. Luckily, we’re here to provide clarity, education and insights, so you can make the right gold purchase for you. Keep reading to find out more about how to buy gold online!
Why buy gold?
First, let’s explore the reasons behind gold’s enduring appeal. Besides its aesthetic beauty, gold’s consistent reliability and lasting value have established it as a foundational asset for centuries.
Hedge against inflation
Historically, when the cost of living rises and the value of fiat currencies declines due to inflation, gold prices tend to appreciate, effectively “holding” your wealth in real terms. This makes it attractive to investors who want to protect their wealth over the long term. For collectors, gold’s intrinsic value adds an additional layer of security. Whether held as bullion, coins, or jewellery, it represents a tangible asset that is not directly tied to the performance of any single currency or economy.
Portfolio diversification
Gold plays an important role in diversifying your portfolio. Traditional investments like stocks and bonds often move in similar directions during periods of economic uncertainty. On the flip side, gold tends to rise or maintain its value when other assets fall, reducing risk and balancing your overall holdings. This creates a resilient investment strategy for investors, while collectors can also benefit from diversification, as gold carries an aesthetic appeal and, in some cases, rarity that make it both financially and visually rewarding.
High liquidity
As one of the most liquid assets in the world, gold can be bought or sold quickly with relative ease. It is traded in many countries every day, and the widespread demand means investors and collectors can convert gold bars, coins, or jewellery into cash when needed. This is especially useful during emergencies such as a financial crisis or unexpected expenses. Moreover, its global recognition guarantees fair pricing across markets, giving holders confidence that they can access their wealth anytime.
A tangible, physical asset
Finally, physical gold bars and coins are real objects that can be stored, handled, and passed down through generations. This level of ownership offers complete privacy by eliminating the need for third-party involvement from banks or brokerages. This also removes counterparty risk, ensuring your assets are safe from being frozen, hacked, or deleted due to system failures. For investors and collectors, the tangible nature of gold provides reassurance and financial security.
Buying gold as a new investor
So, you’re new to the world of gold investment. You’ve done some initial research on gold and you’re fairly confident on the type of gold assets you like and are considering a purchase.
But, the big question you may be asking is, ‘How do I buy gold?’ There are multiple ways to invest, but establishing a solid foundation in the gold market is a great place to start. We’ve put together a few handy starting points in the next section below.
How do I buy gold?
Conduct a quick search online and you’ll likely come across lots of different gold bars, coins and weights that exude quality and elegance. Buying gold isn’t just a vanity project based on the fascinating aesthetic – it should be a considered decision made based on knowledge of the short and long-term investment opportunities it provides. Therefore, knowing exactly what to consider will help you understand the right purchase decision for you.
Gold investment opportunities
Buying gold requires a sound understanding of the market and the different opportunities available to you. When assessing how to buy gold, assess the investment landscape and your current gold portfolio. Buying gold can take a physical or digital form, comprising Gold ETFs, coins, bars, investment trusts, and funds. Educating yourself on each of these investments before making a purchase decision is key.
Size and weights
If you’ve decided that physical gold is the way to go to diversify or start your portfolio, then there are numerous different weights that you can choose. As a new investor, smaller weights are a safer, low-cost option to begin with. Manageable prices, easy portability and value retention are all perks of investing in a smaller gold bar, such as a 2.5 gram gold bar. For seasoned collectors, a mid-weight gold bar like the 20g or 50g bars may provide a better option to enhance your growing collection.
Premiums and prices
Understanding the rule of thumb of gold bullion premiums is key. The smaller the weight of the gold bar, the higher the premium. This is because larger gold bars cost less per ounce to produce. Therefore, larger gold bars tend to have a lower premium over the spot price of gold compared to lower-weight gold bars or coins. We advise working out the lowest cost per gram for different size options to ensure your investment amount is maximised.
Keep your eyes on gold prices
Gold prices fluctuate daily, and the price of gold is determined by the London Bullion Market Association twice a day – once in the morning and then again in the afternoon. Several market factors contribute to the daily prices of gold, so it’s important to understand these different factors to ensure you’re purchasing at the right time. Supply and demand, central; bank purchases, economic conditions and inflation rates are the main factors that dictate what the price of gold is. Check out our blog on the best time to buy gold for more information.
How can I buy physical gold?
As we outlined earlier in the article, there are several ways to buy gold. Buying physical gold is an outlier to other investment opportunities as it withstands volatility in the economic markets, retaining value as inflation and interest rates rocket. This stability means it is a stronger investment opportunity than electronic gold or even paper gold, with great value retention for a solid long-term investment. Holding physical gold gives you control, clarity and insurance for your investment in the face of adversity.
How to buy gold from a bullion dealer
Physical gold, whether it takes the form of a gold bar or coin, gives investors the chance to hold a tangible asset with strong market value. These can be stored in a professional vault, offering maximum levels of security. Or you can keep them safe at home in a safety deposit box, giving you direct access whenever you need it. However, this option may require additional insurance coverage, which can be costly.
In the UK, some banks allow customers to purchase gold and store gold with them in vaults through a dedicated Gold account. The Bank of England also holds vast reserves of gold and provides gold accounts for commercial firms that provide accessibility for central banks to the gold market. But, for seasoned gold collectors or individuals looking to start investing in gold, reputable bullion dealerships are the safest way to purchase.
Online gold bullion dealers provide a safe way for gold investors to make purchases quickly and easily online. Gold dealers who only offer gold stocks manufactured by LBMA-approved brands are a strong signifier of trustworthy dealerships that are reputable and provide the best gold stocks on the market. Here at Bullion Giant, we specialise in online gold bullion bars and coins from world-leading refiners, such as Metalor, Heraeus, PAMP, Valcambi Suisse and Umicore.
Buying gold is easy with Bullion Giant
So, now you know everything there is to know about how to buy gold, why not check out our wide range of exquisite gold bullion bars? Buying gold with Bullion Giant is easy and secure. We offer free, insured delivery for all of our gold bars and coins, with all deliveries packaged in secure, protective packaging meaning your asset will arrive to you promptly.
What’s more, we offer flexible payment options, so you can pay via bank transfer, debit or credit card or spread the cost of your purchase over 3 months with iwocaPay. Invest in smaller weights, such as the 1g, 2g, 5g or 10 gram gold bars, providing cost-effective purchases with long-lasting value. Or, if you’re an experienced gold collector looking for a substantial weight to elevate your collection to the next level, then we’ve got you covered. We stock a range of expertly crafted heavily-weighted gold bars including our 500g and 1kg gold bars and our heaviest product – the 12.5kg gold bar. Contact us today to enquire about our range of meticulously crafted gold products. Our team of experts will be on hand to assist you with any queries if you require advice on the right gold purchase for you.