The Golden Rules When Buying Gold Bars

purchasing gold barsBuying gold bars are on the rise for serious investors because the price of the precious metal only continues to increase. When buying gold bars, however, it’s important to consider some factors first. Though worth it, the price of gold can be steep and losing money on it is no laughing matter. Here are some of the things any serious buyer should keep in mind when buying gold bars.

Dealer

Where you buy your gold bars may be the most important factor you need to decide on. You might feel good if you buy your gold bars from small and unknown dealers because you think you got a good bargain, but beware. Gold bar scams are still very much prevalent today. Some people have been duped into buying yellow metal or gold painted lead. When buying gold bars, get it from trusted dealers.

Type

Another vital factor to consider when buying gold bars online is the type of gold bar you’re going to buy. There are different types to choose from namely, kilo gold bars, 10-ounce gold bars, 1-ounce gold bars, and gold biscuits. Kilo gold bars are 32.15 troy ounces in weight and are the most traded. Serious investors and governments typically own this type of gold bars, though it might be too expensive for a regular person.

10-ounce gold bars are named after their weight and are also typically traded by serious investors. 1-ounce gold bars, on the other hand, are very popular because they’re the same weight as 1-ounce gold coins, but they’re much easier to store and also cheaper because they’re easier to manufacture. Last are gold biscuits. Gold biscuits are more like novelty items because they’re very thin gold bars with a stamp from which country they come from.

Storage

Before buying your gold bars, think about where you will store them. Does your bank store gold for their clients? If they don’t, then you may want to look for a bank that does. If you’re not planning on storing your gold bars in a bank, however, a fireproof safe hidden well inside the house should suffice.

Whether you invest little or big in buying gold, it’s still your hard-earned money you’re spending so it’s better to be careful and consider all factors before investing in it. Gold is truly a worthy asset to invest in, but tread carefully and make sure you’re buying real gold and plan on where you will store it.