Buying gold can be very rewarding and potentially profitable. But there are many precautions that one must be aware of before buying their first gold coins. These precautions can mean the difference between a sizeable gain or a huge loss. Some of these precautions may not be as obvious as others. Below are some of the precaution one should take before buying gold.
Precautions
Be aware of Scams
Do your homework well. There are many people, companies or scams and websites these days, buy gold from a reputable dealer. There is a ton of scam artists in the gold business. Selling gold is completely unregulated. Anyone can sell it. And they can sell it, however, they want to with almost no repercussions. So before you buy from someone, check references.
Auction Houses and Websites
While you don’t want to blindly go out and buy from just anyone on the Internet, it is possible to find some good deals on eBay for example. Of course, just because a seller has an eBay page, that doesn’t mean they are the best place to buy gold, and certainly, they should not automatically be trusted. First, verify their eBay rating, found in the top right corner of the screen. I even suggest that you take your research further, by checking their Better Business Bureau store rating, if they have one. The same kind of caution should be taken with any auction house you’re considering buying from.
Buy gold coins from reputed nationwide retailers
While buying gold one should buy it from a vendor who is well known in the area. The famous and popular shops are always trustworthy as they don’t make any fraud while selling gold. Then one should always ask for the receipt. As this receipt is the only proof that this gold is brought from the respective shop. This receipt is important and necessary while selling gold. Therefore one should always ask for the receipt while buying gold.
Avoid buying illegal gold
One should avoid buying gold from the agents as they can give gold in low price but they will never give a proper receipt which means that gold is either robbed or impure. Such gold has no value in the market so that all investment can go waste.
Be aware of the actual weight and size of the gold
Make sure the weight and size of the metal are what you think it is. Many independent online sellers of gold misrepresent the size and value of the bullion they’re selling, sometimes by accident and sometimes not. Gold bullion is measured using different yardsticks depending upon their weights. Many of the silver and gold bars to be found for sale are measured in troy ounces, the traditional unit of measure for precious metals. However, weights of bullion smaller than half or a quarter of an ounce are usually measured in grams or grains.Knowing the actual size and weight will save you loss.…