BestWayToBuyGold.

com

How To Buy Gold

Fo

rP

riva

te

Inv

est

ors

How To Buy Gold - BestWaytoBuyGold.com

Buying Gold! The Different Methods to Buy Gold! Time to Sell - What Then?! To Offshore or Not to Offshore? That is the Question! Why Gold?!

3 5 9 11 12

1

How To Buy Gold - BestWaytoBuyGold.com

This “How to Guide” has been brought to you by BestWayToBuyGold.com helping private investors find the best way to by gold.

2

How To Buy Gold - BestWaytoBuyGold.com

Buying Gold

“The great thing is that recently the options open to individual investors have gotten much better. This has happened in conjunction with gold becoming more mainstream.”

Recently many investors who have never considered gold before are interested in the precious metal. The main reason for this, is the massive increase in the money supply across the globe resulting from economic stimuli and bailouts. However, the most remarkable trend is the massive increase in individual private investors who are looking to get into gold. There are a wide variety of ways an individual investor can buy gold. It’s important that you consider each of them before you decide to buy. There are many practical issues which this ebook will highlight that will help you come to a conclusion. The great thing is, that recently, the options open to private investors have gotten much better. This has happened in conjunction with gold becoming more mainstream. The good news is, that you, with a little bit of research, can find the ideal way to get into gold, with respect to your own personal circumstances. For thousands of years, the purchasing power of gold has remained reasonably consistent. The often mentioned comparison between what a gold coin would buy in Roman times and what the equivalent gold coin could buy today puts this into perspective. A gold coin in Roman times would buy a good quality toga, belt and sandals. In modern times, it would buy a good suit, belt and shoes.

3

How To Buy Gold - BestWaytoBuyGold.com

“As fiat currencies tend to lose purchasing power over time, gold offers a steady platform to maintain the purchasing power of your savings.”

As fiat currencies (paper money) tend to lose purchasing power over time, gold o!ers a steady platform to maintain the purchasing power of your savings. The current global financial crisis has led to an injection of fiat currency into the system not only in the United States but across the entire globe. Common sense shows that the purchasing power of peoples’ savings will decline as the amount of money in circulation increases. Production globally has not increased. So, it’s a simple matter of supply and demand. Cash versus hard assets. As a result, gold has become more prominent. It o!ers an avenue for people who understand the likelihood of inflation down the line, to protect themselves against it. It’s up to you to do something. This ebook will give you the information that will help you get into gold and therefore protect your, and your family’s wealth.

4

How To Buy Gold - BestWaytoBuyGold.com

“You can buy gold in many different ways. This is really good, but for the new investor it can be confusing at the start.”

The Different Methods to Buy Gold
You can buy gold in many di!erent ways. This is really good, but for the new investor it can be confusing at the start. Basically, you can buy physical gold or a gold Exchange Traded Fund (ETF). If you buy physical gold you can buy coins or bullion bars. Let’s look at each method of buying gold in a little more detail. Buy Physical Gold This is when you own the gold you buy. To many people, this is the best way to buy gold because you actually own the underlying gold. With a gold ETF you don’t actually own the underlying gold. For investment purposes both gold coins and gold ingots (bars) are considered bullion. Here are some gold coins: •The •The •The •The •The •The •The South African Krugerrand Australian Nugget Kangaroo Australian Lunar Coin Canadian Maple Leaf Austrian Philharmonic American Gold Bu!alo American Eagle
5

How To Buy Gold - BestWaytoBuyGold.com

“BullionVault not only lets you buy gold online at very low commission. It also lets you store the gold in a professional vault in either New York, London or Zurich.”

•The Chinese Panda This is the most obvious way to own gold. However, there are many considerations that you need to look at. Firstly, there is the issue of delivery. If you intend to buy a lot of gold it will be quite di"cult to deliver. This is both for weight and security reasons. Even if you are not going to take delivery at your house you will need to make sure that the proper delivery arrangements are made with the vault you intend to use. Second is security. If you intend on storing gold in your home, you will need to install a safe along with other security precautions. Storing gold at your home could be a danger to you and your family. Also, it’s prudent to take out an insurance policy on the gold. All of the above adds to the cost you owning your gold. As a result, it’s much more practical to store the gold in a professional vault. Many banks o!er a secure storage service. However, there is a better option. It combines convenience with security. BullionVault not only lets you buy gold online at very low commission. It also lets you store the gold in a professional vault in either New York, London or Zurich. I found out about BullionVault when I was researching how to buy gold for myself. After I weighted up all the options BullionVault was the clear winner. I am extremely happy that I chose them as opposed to a traditional gold broker. They won the Queen’s (Queen of England) award for innovation 2009. They have been recognized for enabling private investors to access the cost-savings and safety of the professional wholesale gold bullion
6

How To Buy Gold - BestWaytoBuyGold.com

“Gold ETF!s track the price of gold and can be found on the major stock exchanges. Unlike owning physical gold, with ETFs you cannot redeem in gold bullion only in cash.”

market. Quite frankly, they give the private investor the best deals when buying gold. Not only does BullionVault allow an individual investor access to professional standard gold, it also has the best prices for individual investors. There are huge benefits when selling your gold on the BullionVault system which will be dealt with in a later chapter. Exchange Traded Funds (Note: For simplicity we will cover CEFs and ETNs in this section too.) Gold ETF’s track the price of gold and can be found on the major stock exchanges. Unlike owning physical gold, with ETFs you cannot redeem in gold bullion only in cash. In other words, you don’t own the gold. You own the financial instrument that is tracking the price of gold. For a lot of investors, owning gold outright is the better option because it insulates them from the risks associated with default and other independent risks that most savings products are tied up in. Unfortunately ETFs don’t to this to the extend may require. Gold accounts, indexes, spread bets, and futures all fail to extricate the buyer from the web of dependencies that comprise the modern financial landscape, because they are based on undelivered gold. The only way to opt out of the web is to own physical property outright.

7

How To Buy Gold - BestWaytoBuyGold.com

“However, with BullionVault you can invest as little as you want. This negates the main advantage gold ETFs previously had over owning physical gold outright.”

Gold ETFs were attractive due to the fact that private investors could invest relatively low sums of money. However, with BullionVault you can invest as little as you want. This negates the main advantage gold ETFs previously had over owning physical gold outright.

8

How To Buy Gold - BestWaytoBuyGold.com

Time to Sell - What Then?

“Most private investors forget about what will happen when they try to sell their gold. Yet it!s just as important as how they bought the gold, in the first place.”

Most private investors forget about what will happen when they try to sell their gold. Yet it’s just as important as how they bought the gold. In summary, it comes down to trust. Is the gold of high quality and of investment grade? To cut straight to the chase. How does any prospective buyer know that your gold is investment grade? Will they request independent verification that you must pay for? How do you inform potential buyers that you are selling gold? At what price will you agree upon? You see, selling gold is extremely complicated when you take delivery. However, if you buy gold from an exchange like BullionVault, you can sell immediately at the Gold spot price. Also, because your gold has never been physically in private hands, and instead has been held by a professional vaulting company with an impeccable record on your behalf, you don’t need to get it independently verified. Ultimately, as a private investor you should strongly consider buying and selling gold on a gold exchange. When all is considered, you get the best prices both ways. On top of this, you don’t have to go through the hassle of taking delivery and arranging storage of the gold. You still own the gold 100% but the storage is taken care of.

9

How To Buy Gold - BestWaytoBuyGold.com

“With a gold exchange you can sell it instantaneously. As a private investor this is a massive benefit.”

It’s important to consider how quickly you can sell your gold. With a gold exchange you can sell it instantaneously. As a private investor this is a massive benefit. 


10

How To Buy Gold - BestWaytoBuyGold.com

To Offshore or Not to Offshore? That is the Question

“If you decide to buy gold on a Gold Exchange you have the option of storing it in different locations.”

Ok, where is the best place to store your gold? In your own country or in another jurisdiction? Well surprisingly, about half of the Gold worldwide held by private investors, is stored o!shore and half is stored in the investor’s country of origin. This is the same no matter what country the investor is located. It comes down to your belief in your country’s property rights. What are the chances of private gold holdings being confiscated in the country that you choose to store your gold in? If you decide to buy gold on a Gold Exchange you have the option of storing it in di!erent locations. The great thing about this, is that you can change the location of your gold by selling it in one location and buying it in another. However, when deciding where to store your gold when using an exchange be aware of the activity in each location. For example, if there is more activity in Zurich, then when you sell it will be matched with a buyer very quickly. If you use London, and for example there is not much activity then it may take a few minutes more to make the sale. Again, it’s worth thinking about. Ultimately, it’s up to you to decide where you will store your gold. What I really like about BullionVault, is that the storage fee is very small. Less than a typical bank would charge. So, think about the location you want your gold stored.

11

How To Buy Gold - BestWaytoBuyGold.com

“As we know, governments and central banks throughout the world have stepped in to stimulate economic activity. This involves stimulus packages on a scale never seen before.”

Why Gold?
To understand why gold has become so attractive for the private investor. We need to take a look at the economic driving force of the last ten years. This consisted of extreme consumption by rich nations. The consumption was fueled by using lots of credit. Naturally, when the credit dried up, a lot of the economic impetus vanished. Hence, the current economic situation we find ourselves in today. As we know, governments and central banks throughout the world have stepped in to stimulate economic activity. This involves stimulus packages on a scale never seen before. Quantitative easing and extremely low interest rates. All coupled with the running up of massive government deficits. All of the above, points to the distinct possibility of high inflation in the coming years. Basically, the more money injected into the system the less the purchasing power of the currency. Think about your savings. The more money that is created the less percentage of the overall money supply your savings represents. Therefore, the less things you can buy with your savings. Your savings have been diluted. Gold o!ers you the opportunity to protect the purchasing power of your savings. Given the current economic climate, it makes perfect sense to put a proportion of your savings into gold. It’s like putting on a safety belt when you get into a car.

12

How To Buy Gold - BestWaytoBuyGold.com

For more information on buying gold from a private investors perspective check out BestWayToBuyGold.com.

13

Sign up to vote on this title
UsefulNot useful