How to Buy Gold Bullion Cheap

by Kent Ninomiya ; Updated July 27, 2017
Buying gold bullion is a simple way to invest in the precious metal.

Gold bullion can be a good investment during difficult economic times. The price of gold tends to rise as investors lose confidence in major world currencies. The key to buying gold bullion cheap is to purchase a large quantity of the right type in a single transaction. It is also important to know the spot price of gold and to pay a low premium over that spot price.

Step 1

Look up the spot price of gold, which fluctuates constantly, on the day of the purchase.

Step 2

Set a budget. Bear in mind that dealers sell gold bullion in 1-ounce increments. If the price is $1,000 per ounce, plan to buy in $1,000 increments.

Step 3

Carefully select the form. The most commonly traded gold bullion in the United States is the 1-ounce American Eagle.

Step 4

Buy directly from a gold bullion dealer. They advertise two prices: a buy price and a sell price. The sell price is typically 3 percent higher than the buy price, which is about 2 percent higher than the spot price. If a dealer is paying less or selling for more, go somewhere else.

Step 5

Ask for a quantity discount.

Step 6

Ask for a tax break.

Tips

  • See the Resources for the spot price on gold and a list of U.S. Mint-approved American Eagle dealers. They sell for a premium of about 5 percent over the spot price of gold and are easy to buy and sell. Gold bars sell at premiums as low as 3 percent but are less attractive to collectors. Dealers often reduce their premium by up to 1 percent for purchases of 10 ounces or more. Many states waive sales tax for gold bullion purchases higher than $1,500. Many gold dealers also waive shipping and insurance costs for purchases over $2,000.

About the Author

Kent Ninomiya is a veteran journalist with over 23 years experience as a television news anchor, reporter and managing editor. He traveled to more than 100 countries on all seven continents, including Antarctica. Ninomiya holds a Bachelor of Arts in social sciences with emphasis in history, political science and mass communications from the University of California at Berkeley.

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