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Gennady Ustinov
Gennady Ustinov

How To Buy Gold The Cheapest Way



Some investors prefer to buy gold from local dealers. However, they can be more costly. A common way to buy physical gold is from online gold dealers. Online gold dealers make it easy to purchase high-quality physical gold and have it shipped home or stored in a secured vault.




how to buy gold the cheapest way



Before purchasing, make sure to do your research to find the best online gold dealer. Seek one with a proven track record, competitive and transparent prices, clearly defined buyback policies, and more. You should also take note of shipping prices, storage options, and payment alternatives.


Buying gold and silver makes a lot of sense, especially within the context of the unprecedented events of the past 18 months. In 2021 we saw runaway government spending and money printing, an unstable economy due to COVID lockdowns, and a political climate characterized by regular eruptions of riots and destruction.


But like with any other purchase, you want to make sure you get the most bang for your buck when buying gold. It is easier to find the best gold price when you have the background on how the price is determined, which we also discuss. And then, we also dive into why it is so important to buy precious metals today.


It, therefore, makes sense to hold some of your savings in an asset with real value. And for 5,000 years, gold has held the most prominent and secure role as a store of value, especially during uncertain times.


In contrast, the Canadian Gold Maple Leaf one troy ounce gold coin is popular, well recognized, and comes from an official government mint. It can be found online for as little as $63 USD over the spot. It will be easier and potentially hold a higher premium if you ever try to sell it in the future.


Historically, miners used futures contracts to lock in gold prices on the day for metal that they would pull out of the ground several months in the future (hence the name). Futures contracts made their businesses much more predictable.


A gold futures contract is based on a 100 oz gold bar with a minimum fineness of 995 (99.5%). (Fineness refers to the weight of the fine metal itself, in proportion to any impurities or alloy metals in the bar.)


The cheapest place to buy gold is usually online. Kitco.com often has the lowest premiums on gold coins -- the cost over the spot price of gold. But you have to cover the cost of insuring your package, and may have to pay for shipping as well.


Gold futures are a good way to speculate on the price of gold rising (or falling), and you could even take physical delivery of gold, if you wanted, though physical delivery is not what motivates speculators.


The biggest advantage of using futures to invest in gold is the immense amount of leverage that you can use. In other words, you can own a lot of gold futures for a relatively small sum of money. If gold futures move in the direction you think, you can make a lot of money very quickly.


Risks: ETFs give you exposure to the price of gold, so if it rises or falls, the fund should perform similarly, again minus the cost of the fund itself. Like stocks, gold can be volatile sometimes, but these ETFs allow you to avoid the biggest risks of owning the physical commodity: protecting your gold and obtaining full value for your holdings.


By buying professional market Good Delivery gold you save at least 7% of the cost of coins or small bars. And when you sell you'll get the best price too, because Good Delivery gold is the only gold you can easily sell on the world's professional markets, where selling prices are highest.


Using live prices, this calculator lets you see how much gold, silver, platinum and palladium you can buy on BullionVault for the sum of money you want to invest, plus how much you will pay in fees to buy, store and then sell your metal.


After they are manufactured by accredited refiners the gold bars traded on professional markets around the world stay their entire lives in formally accredited vaults. They never pass through private hands, where they could be corrupted. Because of this they are always trusted by dealers, such that professional buyers only accept bars delivered direct from these specialized vaults. All professional buyers, which will include you, benefit from a permanent guarantee of integrity of gold bought and sold within the Good Delivery system.


You choose your storage location(s) from Zurich, London, New York, Singapore and Toronto, so that at no extra cost you can distribute your geographic risk, often outside the country where you live. That's worth thinking about. By owning gold overseas you can avoid jurisdictional exposure and potentially make significant profits should exchange controls be re-introduced - something more and more people are starting to fear.


Nobody matches BullionVault's transparency with respect to customer property. Every day we post both a private 'nicknamed' register of all BullionVault's gold owners, and the reconciling bar list from our vault operators. We also post the register of Client Money and the bank statement from our bankers. Only you know your nickname. This means you can see your gold and any cash holdings daily and anonymously proven by public reconciliation to bar lists and bank statements provided by independent third parties.


You can then click through to our auditors' report on the total accuracy of the daily reconciliation. It's published on their website to assure you of its independence from us. There you'll also see the professional assay report from LBMA approved Alex Stewart International, one of the world's largest bullion inspection business, who annually re-verify the quantity and quality of gold bars held for BullionVault Clients in the formally accredited vaults.


Because we use professional vault operators and implement these precautions and controls insurance is much, much cheaper for gold stored in BullionVault. Insurance actuaries know how much safer it is there than anywhere else. So your insurance is included at our expense, and we publish the insurer's cover note on-line for your inspection; a sixth independent control.


We've also protected you completely from our own financial failure, or the failure of our vault operators. Both BullionVault and the vault operators it has selected are your custodians employed to look after your gold. Unlike your money deposited at a bank (which under banking law becomes your asset, and the bank's property) your BullionVault gold remains your property throughout. It never goes on our balance sheet. Your gold stays in the vault and reverts to you in full in the event of a financial failure. That's what custody means. You are not depositing your gold, or transferring it to us, you are paying a custodian to safekeep it for you, which is fundamentally different in law from depositing in a bank, and it is immeasurably safer for you.


In any event BullionVault is a much more cautious organization than your bank. We never lend your gold (a bank usually would) and we keep at call sufficient free capital to pay all our operational expenses for at least 5 years - which is 20 times more operational cash cover than is required by your bank's regulator.


Taken together these precautions put you in a far more secure position (and at much less cost) than were you to take gold home for storage. That's why in 2009 BullionVault won Britain's most prestigious business award - The Queen's Award for Enterprise - both for making the low-cost efficiencies of the professional bullion market available to retail customers and for the transparent safety of the storage system.


With over 100,000 users, and much more gold than most of the world's central banks, BullionVault is the largest retail distributor of professional quality bullion in the world. We've got to be the best by being straightforward, being thorough, being knowledgeable, and by making gold cheaper, safer and easier for you.


When you want your money back just go online, sell your gold and withdraw your money. We wire your funds the next business day. There is no minimum period for holding BullionVault gold, so there is no penalty for changing your mind and wanting your money back.


[#1] Approximately 98% of gold traded worldwide is unallocated. This includes retail investment products like gold accounts and gold certificate programs. Unallocated gold is so-called paper gold credited to you on a balance sheet - usually, but not always, by a bank. It exposes you to counterparty default. Conversely allocated gold is physical bullion which is your property and no-one else's liability. For your safety BullionVault only deals allocated gold.


You will virtually never be able to buy gold at its spot price. Higher premiums represent the cost of refining, fabricating, and transporting the gold, as well as the dealer's profit margin. This is partly why gold jewelry and gold artwork are so much more expensive than bullion.


It's helpful to use the premium as a gauge for how cheap or expensive a gold product is. In the industry, we often call this the premium over spot, where "spot" refers to the spot price of gold at any given time.


Gold bars tend to have the lowest premiums over spot due to their generic appearance, so they can be efficiently mass-produced. Yet the supply and demand of specific products matters, as well. Sometimes old gold coins (those minted before 1933, under the gold standard) will offer the best "bang for your buck" depending on market availability.


Just make sure you stick to coins from common dates that are not in mint condition. Rare or well-preserved gold coins will always cost more. The same applies to modern bullion coins like Canadian Gold Maple Leafs or South African Gold Krugerrands. 041b061a72