Buying Into The Gold Market
There are many reasons why gold makes a good choice for investment, not the least of which being the various ways you can purchase a stake in gold's future. While most people think that investing in something involves buying stocks and never actually seeing the item in question, gold is one of the rare exceptions. However, if you choose to buy gold bullion as a means of investing, it's a good idea to familiarize yourself with what you're buying and with the businesses which are selling it.
Know Your Options
Just because a business buys gold doesn't necessarily mean they have bullion on hand for resale purposes. A good example of this would be jewelry stores, pawn brokers and businesses that specialize in buying scrap gold. Most of what they'll have on hand will be just that, and unless they have the facilities to smelt that scrap on site you won't have much luck buying from them, but they do a tidy business buying scrap gold for recycling.
Coin dealers are actually a good place to start, as many governments mint coins in gold bullion for collectors. Newer coins will actually be priced closer to market value, making this a good starting point for a novice investor in gold. While less common, you can also inquire with local assayers and smelting houses who actually do deal in raw or refined gold.
Know Your Commodity
While it can be helpful to know about gold's uses, the most important thing for novice buyers to know is the spot value and the average mark-up they can expect from professional sellers. Gold is tracked by most of the world's stock exchanges, so finding the daily price can be achieved with an appropriate web-search. That said, only a very few dealers will update their pricing on a daily basis, so expect the price you buy at to lag a few days behind actual stock values.
Don't go into any gold purchase with the expectation of making a fast profit. As commodities go, gold has historically been one with a reliable upward trend over the years, so plan on buying at the lowest price you can manage so that you can wait out future ups and downs. If you choose to sell, be aware that most gold buyers will purchase at rates which are below market value, though the percentage varies from one buyer to the next.
For more information, contact Rocky Mountain Gold & Silver Exchange or a similar company.