Buying Gold

Buying Gold

When buying gold it is advisable to check the current up to date price before doing so. If buying gold as an asset and bullion you don’t really want to be paying more then current spot price plus 5%. Most gold dealers sell at spot plus a small percentage.

You should also buy from trusted or recommended sources, this is to ensure that the gold is:

  • Not Stolen
  • Genuine
  • Of the stated fineness (Carat, eg 18ct)

and also to ensure that you get a good service.

There are so many fake gold chains that are hallmarked, fake gold coins, stolen gold jewellery etc. that it is easy to invest or buy the wrong product or be fooled. If you are buying scrap, gold, broken jewellery or the like it would be worth while buying a gold testing kit and actually making sure the gold you receive is as advertised.

If you are buying from a jewellers, bear in mind most gold products they sell will be marked for sale as quite a bit more then then the current gold value. This is because jewellery cost money to make, you are paying for the design and the wearability of the item.

If you are buying from a coin dealer (unless otherwise stated) the coin will probably be worth and be sold for more then the current gold price, as it will have a numismatic value. This simply means that the coin has history, design, desirability (ie wanted by collectors), be in a decent condition and possibly rarity. Which all help to make it be worth more. Also try and buy from trusted, recommended dealers or dealers registered with the BNTA (British Numismatic Trade Association).

For more about coin collecting read this page: Coin Collecting