Tips for Buying Gold Bullion Without Being Scammed

So how can you invest in gold bullion without being taken advantage of? To begin, decide exactly what kind of gold coins you’re interested in before you start shopping around and stick to it because the potential gold dealers won’t be able to dissuade you to another kind. In addition, do extensive research so that you approach legitimate gold dealers.

Gold

In any case, follow these tips to avoid being scammed and spending more money than you should.

  • Watch out for counterfeit bullion coins. If a seller is selling it way less than the spot value, this should be a red flag. In addition, make sure the coin is weighed in front of you. Counterfeit coins often weigh less than real coins because they only possess a little of the denser gold and are mainly iron or copper. Check that the bars have been stamped with serial numbers. Finally, perform the magnet test. Real gold bullion does not stick to magnets while fake counterfeit does.

  • Know how to figure out a fair premium because dealers shouldn’t sell more than 10 % over the spot price. To calculate the premium, subtract the spot price from the quoted price and then divide it by the spot price. Once you have that number, multiply it by 100 and you’ll see the premium percentage.

  • Beware of gold dealers that try the bait and switch. Gold bullion is priced purely on the melt value while numismatic coins are priced on both melt value and their “rareness” or collectible or historical value. Buying gold bullion bars in Melbourne is currently selling at $1750 AUD an oz, but a collectible coin sells for $3500, the other half is purely for collectible reasons.

For investment purposes, you should stick with bullion, but some sellers like to trick you by saying they have lots of gold bullion and really try to sell you a numismatic coin because they can make a better profit.

  • Instead buy your gold from a reputable online gold dealer, such as GoldBuyersMelbourne.com.au. Their website covers the current rates for gold bullion bars and they have a local office in Melbourne, open six days a week. In addition, they’ve been in business for over 60 years and only pay you in cash, so transactions will never be reversed.

  • Check the current prices frequently. This is helpful because if you run into a financial crisis, you’ll know where you can get the best value for your gold investment.

  • Take care of your investments. Remember that the most popular bullion coins include the American Eagles, the South African Krugerrands, and the Canadian Maple Leafs. If you’re going to make these kind of investments, keep your bullion coins in their original condition and store them securely. Make sure you understand how taxes work with your gold investments. Technically, the IRS considers gold coins as a collectible and not an investment so you shouldn’t have to pay extra money for capital gains like the other investments in your portfolio.

Investing in gold shouldn’t have too to be an overwhelming task as long as you are informed on current rates, the gold economic forecast, and where to find and store your gold safely.

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