Where should I buy gold coins

Buying gold properly has to be learned

Anyone who has come to the conclusion to convert part of their financial assets into gold assets has initially thought correctly and has not done anything wrong. But gold is not just gold. Below you will find out where potential pitfalls lurk when buying gold. Avoid these and you will most likely have a lot of fun with gold in the long run.

Paper gold and its shortcomings

Much of what is marketed as gold investment in the financial sector has little in common with real gold, as it is primarily a securitized promise of payment or delivery and not a substantial, rare precious metal with a protective function. The term paper gold expresses this particularly strongly, even though paper and gold basically do not go together at all. There are many different types of paper gold. Certificates or leverage products on gold issued by banks run counter to the real meaning and purpose of gold in view of the banking crisis that has not yet been overcome and the built-in risk of total loss. Anyone who buys such financial products with a gold label should be aware of the associated risks of total loss.

Gold futures are primarily used for speculative purposes and, due to their construction, are hardly suitable as crisis protection or crisis currency, as they are primarily based on payment or delivery promises. In the event of a crisis, the bill cannot work out because only a fraction of the outstanding gold futures are physically available in the form of gold. Even physically secured gold financial products with delivery entitlement do not offer a clear right of ownership of gold. It is doubtful whether the right to deliver the respective amount of gold actually works in the event of a crisis.

Real crisis protection is about investment gold

It is obvious that effective asset protection should be striven for, especially through gold in physical form. But even with solid gold you should differentiate: For example, due to the cost components contained in sales tax, design and workload, gold jewelry has an intrinsic value that is sometimes well below the material value. In the case of rare collector coins (numismatics) it depends on the edition and the condition. You should definitely consult a specialist here. Investors for whom pure asset protection in the form of gold has top priority prefer VAT-free gold in the form of bars or coins - so-called investment gold. Anyone who buys this should definitely heed the following tips.

The best time to buy gold

First things first: no expert can tell you what level the ideal time to buy gold is - let alone where the gold price will develop in the future. If you want to buy a gold coin or a gold bar in this country, you should still pay attention to the time of purchase. In principle, gold is traded around the clock, but in Germany physical precious metal trading is usually considered particularly liquid between 9 a.m. and 5 p.m. That means: within this period, gold traders can offer particularly favorable buying and selling prices. The pro aurum online shop is open on working days from 8 a.m. to 8 p.m. Orders received after 8 p.m., on the weekend or on a public holiday are settled with the first price of the next trading day. Incidentally, patient investors can get in even more cheaply by entering a limit order - provided that the gold price reaches or falls below the specified limit.

Be sure to pay attention to the denominations

Gold for private investments can generally be traded in weight classes from one to 1,000 grams. Both extremes may, however, prove to be unsuitable denominations for investors. With a one-kilogram bar you would get the most gold for your money due to the low percentage of minting costs, but if you were to sell gold, the owner would be faced with the alternative: all or nothing. In order to keep the option of a partial sale open, a division into four 250-gram or ten 100-gram bars would certainly be the more sensible alternative with a total gold fortune of, for example, one kilogram. From a weight of one troy ounce (31.1 grams), the ranges between buying and selling are within acceptable limits.

Dividing your gold assets over several one-gram bars is not advisable. For example, if you weighed out the kilo variant with 1,000 one-gram bars, you would have to pay 31 percent more for the same gold weight. The cost disadvantage becomes even more obvious when you consider how much money you would lose if you were to sell immediately after buying a gram of gold. Based on current market data (February 19, 2016) this would cause an immediate loss of 23 percent. Various combination packages, in which several one-gram bars are contained, compensate for this cost disadvantage somewhat. In this context, various multi-cards (5 x 1 gram), multi-discs (10 x 1 gram) and bars (up to 50 x 1 gram) offer a good opportunity to reduce premiums through the volume discount. For example, table bars enable the gold treasure to be divided into 50 bars of one gram each using predetermined breaking points.

Avoid "golden bargains"

When buying gold, however, the price is not the most important component. A supposedly cheap “bargain made of gold” can be quite expensive. For example, if a gold product ordered and paid for online is not delivered at all or if there are doubts about its authenticity or its fine weight. One thing should be clear to everyone: Real gold is always offered at fair market prices and never below the current gold price. Therefore, investors should only conduct gold transactions with established traders whose creditworthiness is guaranteed and beyond any doubt.

If you want to be on the safe side, you should rely on professional precious metal traders who have been active in the market for years. Their infrastructure and purchasing power enable the combination of optimal service with attractive conditions in the relatively low-margin precious metal trade. One should be careful with banks, after all, most of them have completely given up or centralized their business with precious metals. This carries the risk that the buying or selling of gold bars or coins becomes cumbersome and expensive. However, this does not have to apply to every bank. In Germany, for example, thanks to the cooperation with pro aurum, numerous financial institutions or online brokers can now offer their customers the same online trading opportunities for investments in gold & Co. that pro aurum has offered its own customers for over ten years - and the prices for the bars and coins are of course the same for everyone.