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The gold market is buzzing thanks to record-breaking gold prices. Amid market uncertainty, ongoing inflation and other concerns, investors are looking toward gold as a safe-haven asset. In turn, the price of gold has skyrocketed to $3,000 per ounce. Given gold’s remarkable rise, investors have a renewed interest in this precious metal.
If you’ve been on the sidelines and want to join the action, you might want to start investing in gold. But as a commodity, figuring out how to buy gold and get started with gold investments can be challenging. We spoke to gold experts about the key factors to consider when choosing a gold firm and how to get started.
Explore your top gold investing options here now.
How to choose a gold firm to buy precious metals
Before choosing a gold firm, consider the type of gold investment you want to make. For example, you could stick to gold bars or gold coins.
“The benefit of the physical is that you actually own it, just like central banks, large governments. Whenever they invest in gold, they actually want to own the product outright,” says Alex Ebkarian, COO and co-founder of Los Angeles-based precious metals dealer, Allegiance Gold.
“Gold is not intended to compete against your Apple stocks or Nvidia. Yes, it’s not going to pay you dividends or interest in the short term. But its intention is actually to preserve your buying power,” says Ebkarian.
If you’re not sure about owning physical gold, you can look into alternatives such as gold stocks and gold ETFs. But before deciding on which form to go with, consider your goals.
“Owning gold in your portfolio, you’re buying a fund or an exchange-traded fund. That’s for investing. Now, if you’re buying physical gold, you have to think of that as purely financial insurance. Sometimes people conflate the two,” says Jordan Roy-Byrne, author of “Gold & Silver: The Greatest Bull Market Has Begun.”
After reviewing your gold investing options, you can choose the product that serves your goals. From there, here are things to consider when choosing a gold firm:
Business longevity
If you’re new to gold investing, you want to work with a company that has experience in the field and can answer your questions. “Look for a firm that has some longevity. It’s important for investors to validate that through the State registration website and not just rely on Trustpilot,” says Ebkarian. A gold firm with experience and longevity is more likely to be legitimate and be able to help you get started.
Start exploring your top gold investing options online today.
Customer reviews
When choosing a gold firm, it’s key to check out what current and former customers are saying about the business.
“Look for companies that have a good track record and solid reviews,” says Brett Elliott, the director of marketing at American Precious Metals Exchange (APMEX).
You can look at customer reviews on the Better Business Bureau (BBB), Trustpilot and other outlets you trust online. You can also search the company name on various social media platforms to see what users are saying. Another option is to search the company name and look for potential lawsuits and instances of fraud.
Transparent pricing
You may be able to choose a gold firm online or in person. The key is to choose a gold firm with transparent pricing. Know what you’re buying and understand the transaction costs and potential fees. If applicable, review setup fees and maintenance and storage expenses.
“If you opt for an online experience, you’ll have the advantage of transparent pricing, a wider selection of products, and there’s no pressure. You can buy when you want, from the comfort of your home and it’s easy to research the legitimacy of online stores,” says Elliott.
Do your homework and compare the gold cost at a firm you’re considering with others, to avoid being overcharged. If you’re looking at in-person options, some places may be more legitimate than others.
“If you prefer an in-person experience, local specialty coin shops can be found in most major metropolitan areas. In general, these are safer storefronts to shop at than pawn shops,” says Elliott.
Collaborative relationship
Ebkarian notes that there are different types of gold dealers. You’ll have an online dealer that’s very transactional. You can go to their website, input your credit card or ACH information, and make a purchase. Those types of dealers are more hands-off.
On the other hand, Ebkarian says, “There are boutique firms that actually help the client in terms of the product selection, where and how to store it and essentially help with the exit strategy in terms of in the future if they need the liquidity.”
The gold firm you choose should support your interests. The experts we spoke to said it’s a red flag if a gold firm is using high-pressure tactics or fear-mongering.
“You should steer clear of any metals dealer that wants to ignore your desired type of gold purchase and only wants to move you to other types of gold,” says William A. Stack, financial advisor and author at Stack Financial Services LLC.
The bottom line
Investing in gold can be a hedge against inflation. If you’re new to gold investing or just getting started, consider options that have a low barrier to entry. “Gold bullion coins and bars are the most liquid form of gold, with the lowest premiums available,” says Stack.
When choosing a gold firm and making a purchase, Stack recommends asking if the company has vaulting options or services or if you have to find your own. Roy-Byrne recommends that new gold investors do their due diligence and look into multiple gold firms. It’s important to look at prices and avoid fake gold potential scams.
“You have to be careful because you can get really overcharged. And then, if you don’t know exactly where it’s coming from, it’s not actually gold that you bought,” says Roy-Byrne. In short, do your research and due diligence and don’t rush into making an emotional decision. That way you can take advantage of the benefits of gold and avoid potential issues.
