Most Efficient Way to Buy Gold

by Kent Ninomiya ; Updated July 27, 2017

The most efficient way to buy gold is the least expensive way. When gold is held as an investment, the key is to keep premiums and expenses as low as possible. This increases profit margins when it comes time to sell your gold. It is essential to choose the form of gold and seller carefully.

Gold Form

Buy gold in a form that comes with the smallest premium. This way you are paying primarily for the gold contained in the gold item, and less for manufacturing and marketing costs. Gold coins come with the highest premiums since they have the most intricate designs and demand the greatest collector interest. Gold bullion rounds, like American Gold Eagles, South African Krugerrands or Austrian Philharmonics, have lower premiums since their primary value is in their gold content. Gold bars have the lowest premiums of all since they have no artwork on them.

Buy In Bulk

Buy larger quantities of gold in a single transaction. This is much more efficient than purchasing smaller amounts in several transactions. Gold sellers are more willing to offer discounts for large transactions; you will save on shipping and insurance, and many states do not charge sales tax on gold purchases in excess of $1,500. If you are going to invest in gold, buy as much as possible in a single transaction.

Spot Price of Gold

Research the spot price of gold so you know whether you are paying a fair price. The spot price of gold changes every day, so it is important to look it up on the day of the transaction. A link to a website with 24-hour updates on the spot price of gold is listed in the references section. The price of gold bars should be about the same as the spot price of gold. The price of gold bullion rounds should be about 5 percent over the spot price of gold.

Bargain

Buy gold from a well-established gold dealer who commonly sells large quantities of gold. These gold dealers have vast stores of gold that were purchased at a wide range of prices. While they are influenced by the spot price of gold, you might be able to negotiate a lower price if they acquired the gold you are buying for significantly less. Examples of well established gold dealers are listed in the resources section.

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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