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Perhaps you have noticed that many are making forays into the gold market. Individuals everywhere are buying gold. Indeed, the enthusiasm that some people have is almost palpable in certain circles, and perhaps you may have been bitten by the bug too. If this is true, then you need to be aware that one of the most convenient ways to buy gold is online. However, it is not without its pitfalls.
As with everything else in life, knowledge is power. Here are some do's and don'ts if you are planning to buy gold online:
1. Do fully investigate your dealer.
One of the first things you should understand about buying gold is that there are some dealers that are not regulated. There are many honest gold dealers out there, but there are also a number of fly-by-night bandits that will do everything in their power to rip you off. Here are some positive signs that you are talking to an honest dealer:
- has an established track record
- has a physical address
- will ensure physical delivery of your gold items
If you are looking for a trusted dealer, check out CityGoldBullion.com.au! They are among the dealers that offer both gold and silver bullion and can help you navigate this tricky investment field.
2. Don't take the bait if a dealer engages in high-pressure sales tactics, tries to get you to purchase something you aren't interested in, or extends offers that seem too-good-to-be-true.
These are all "red flags" that should tip you off to the fact that your dealer is probably not trustworthy.
3. Do study the current prices of gold.
It is important to realize that gold has what is called a "spot price" so it is important to understand what the typical asking price over spot price will be from an online dealer. Generally, a good asking price from a trusted specialist will usually be from 2.5% to 3.5% above the spot price for one-ounce gold bars and 4% to 6% for one-ounce gold bullion coins.
4. Don't entertain offers from dealers that are either too low in price or too high in price.
Dealers who advertise gold at just 1% above the spot price are almost always going to have an ulterior motive in mind. They are often only advertising the low price just to lure a person in and then try to sell them on collectible gold coins with incredibly high mark-ups. Don't take the bait! Alternately, if a dealer's price is higher than normal, feel free to shop around and look at the offerings of other gold dealers.
5. Do consider buying gold in large quantities.
The great thing about buying gold in large quantities online is that you can have the gold transferred to a non-bank vault provider. This can have a number of benefits, including the fact that when it comes time to sell your gold, you will no longer have it re-assessed. When you actually have your gold in hand, many buyers may have a tendency to question the condition of the bank and you will often need to have them appraised once again. Moreover, the same principle holds true if you have a gold-backed IRA. Transferring the gold will be much easier because the vault company can guarantee the gold is in a superior condition.
These factors are just some of the information you should be aware of when buying gold online. If you are ready to invest in gold online, make sure to thoroughly check several gold dealers to make sure you will find the right fit for you.
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