Contrary to what many people think, is quite easy to start investing in gold. Do not let the shiny, shimmering metal fool you into thinking it is only for the rich. Gold bar prices in the UK can start as low as £40 for a 1-gram bar.
Whilst gold coins may be more attractive because of their intricate designs, financial experts recommend starting with gold bars because the premiums are lower and the storage costs are not as costly.
If this is your first time investing in gold, there are important reminders to keep in mind.
Know your investment capacity
Calculating how much you can spend helps you decide what to invest in later. Gold bars are typically sold per gram and naturally, the smaller the bar, the more affordable it is. But the exact gold bar price you pay depends on its market value that day. The day-to-day price differences are not steep, but you might still want to keep an eye on that.
Choose your gold brand wisely
A high-quality gold bar should have the brand’s hallmark and information about its weight, purity, refiner and registration stamped on the surface. Atkinsons Bullion notes that this information ensures you are buying real gold and not fake metal alloys sold by unscrupulous dealers.
Pick the right gold bar size
Generally, bigger bars have lower premiums because it costs less to produce them, but smaller bars have their advantage as well. It is easier to liquidate smaller bars, and there are more investors willing to buy them. In addition, smaller bars eliminate the need for an assay if you want to sell them.
Buy from a reputable dealer only
There are many ways to spot a scammy seller, but one of the biggest red flags is if their salespeople are pushing you toward the high-end gold coins, which are far more expensive. Look for a dealer that has a buyback policy to ensure that you are not stuck without buyers when you are ready to sell.
Gold is a tangible asset that is readily liquidated. It is private and portable, and it lasts for as long as you live. It is certainly one of the best investments you can make for your financial future.