There are many collectors who are interested in buying gold at good prices. Many other people will often ask ‘where can I buy cheap gold?’ The answer of course is that gold will always be sold at the current prices as dictated by world markets. The trick lies in looking for gold that is slightly lower than the current gold prices and holding onto it a little bit for the prices to rise. Just like in stocks and bonds. The best prices can be found by buying scrap gold from dealers and antique shops. For those looking to invest in gold seriously, this is not very viable however.
Dealers, pawn shops, and mints are some of the places where one can get collectors gold at good prices. One must bear in mind that this is seldom pure gold except in cases of gold coins which sometimes command prices above the current rates. One can also opt to buy gold online from collectors on eBay and other auction sites. The factors that usually influence gold prices when collecting are;
- The dealer
- The type of gold
- The quantity on offer
- Where it comes from
Some tips for those looking to invest in gold coins and small quantity bars;
- Buying gold that is small in value but is packaged fancifully will give very low return due to the costs involved. Shipping, insurance, storage charges are passed onwards from the mint to the dealer to the shop and eventually reflected in the price of the coins. This makes its value relatively low compared to the return on investment period. The converse is true. Buying gold bars of higher weight will see fewer markups on its price which makes it cheaper per gram. The money to be invested is much more which may put off many people.
- When looking to invest in gold coins, it is better to go for ‘in demand coins’ which ensures that their prices are on an upward trend thus making the returns much faster.
- One can buy gold online but due diligence is needed. A lot of unscrupulous and fake dealers abound on the internet and the risk of losing money is very high. Accredited dealers can be found on the World Gold Council website.
The cheapest way to find gold is going to the mines in person. This may not be the best option for many, leave alone the transport costs involved in getting to Africa. But, the fact is that gold prices are much lower at the mine than at the end of the value chain. For those considering to invest in gold big time, there is always the option of setting up a dealership in a gold producing country and taking advantage of the lower costs accrued by closer proximity to the mine. Gold prices are on an upward trend since the economic downturn of 2008/2009 and getting into the gold business could be a very good venture for the brave.