Your Questions About Invest In Gold Bullion

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Charles asks…

how can I buy 24 carat gold bullion at market prices in Australia for investment purposes?

I want to buy gold for investment (gold ingots or bullion) at market price in Australia, Melbourne, does anyone know where I should go? Thanks.

Justin answers:

You can’t…because the MARKET price is NOT what you will buy it for…the dealers have to make a profit so they add on a percentage over market, or service or handling charge.
So you will NEVER buy it for the market price.
And if you go to sell it BACK, they will only pay you a percentage of market price….at least 25% or more LESS than the market price. So they can make a better profit selling it to someone else! They might call it an ‘assaying charge’ (they will say they have to test it to prove the gold content, etc.)
I have owned a jewelry store for 30+ years, and had friends invest in bullion and raw stock against my advice…because they thought they could make a good profit. Never happened…gold would have to almost DOUBLE in price from what you buy it for to make a profit selling it.
I had the chance to stock up on gold when it was only $40 an ounce…stupid me…I didn’t think it would change much. It is almost $1000 an ounce now…I could have made a fortune if I had even spent only $1000 back then and stuck it in a safe!

Thomas asks…

What is the smartest way to invest in gold?

I would like to diversify my financial portfolio by purchasing gold (actual ingots, bars, coins, etc.) What is a good vehicle to accomplish this. I would like to avoid extremely high markup and fees in the transaction to maximize my investment. Advice form people who have invested in gold would be most appreciated.

Justin answers:

Gold bullion, if you want to hold gold in the physical format, or you can invest in ETFs (exchange traded funds) that trade in gold instruments.

Remember that gold is a natural hedge against inflation and has a proportionate relation to crude oil prices.


Joseph asks…

How can I buy gold bullion?

Hi, I want to buy 1oz gold bullion and I know there are bunch of sites which sell online. How do I know which one is reliable. Is it possible to buy bullions directly from US gov??. Any advise in this matter is highly appreciated.


Justin answers:

First read “Gold Investing – frequently asked questions” at this link:

Then read “How to Invest in Gold” at this link:

Specific info on “Coins and Small Bars” is at this link: Also, gold coins are different than gold bars/bullion. Coins have extra cost associated with the mining process whereas bars can be made directly at the refinery.

This is from the world gold council – so some might think there is a bias. However, they also have a strong interest in assuring that people have good experiences when buying/investing in gold. So, I think that the information is well balanced.

James asks…

Where to deposit the gold I would buy ?

If i want buy some gold bullion (not too much!) instead of keeping electronic/paper currency, where can I keep it ?

At the bank is not a good option cause if they fail, I will loose it all, and that was the point of having a tangible asset. At parents home is not a good option either, and in my pocket is even riskier.

Justin answers:

Definitely not at home…NO.
My colleague got robbed when she went on vacation. The thieves even took the safe (bigger size). That means, they would have come with a pickup truck , at least. She lost (she invests in Silver, she buy coins every month) all the investment she made in Silver.
I am also a gold investor. I buy physical gold. I stopped now after hearing about her. I immediately took a safe deposit box in bank and stored my assets there. I also shifted from physical gold to ETFs.

You need to buy physical gold to keep the diversification and store it safely in bank.

Michael asks…

Does anyone know of any good trusted sites to buy gold coins or gold bars?

I am currently looking to invest in gold. I am looking for a trusted site that I can purchase the gold from. I recently found a site that sells gold for cheap, but am a little wary of purchasing from them. And would like to know if anyone had purchased gold recently or in the past and has a site that they would recommend and that they trust.

Thanks in advance.

Justin answers:

William asks…

With a shortage of GOLD coins, would buying GOLD jewelry be a good substitute?

There is currently a high demand for GOLD in this economy. However, now there is a shortage of GOLD because people are hoarding them as a financial safe haven. The only other GOLD that is available is jewelry. However, I hear that jewelry has less value and don’t hold up as well as actual GOLD bullion bars and coins.

But with GOLD in such high demand would buying jewelry be sensible alternative?

Justin answers:

There are really two questions in your question.

(1) – Since gold is in high demand, and bullion difficult to come by, is buying fine jewelry an alternative means to extract the same results, from an investment perspective, as one could from investing in bullion?

(2) – Is gold jewelry a good investment, perhaps unrelated to the first question?

The answer to the first part is an unequivocal NO. In addition for paying for craftsmanship and artistry, you will assumedly also need to pay some profit to the jeweler (so they might keep their doors open). The places to which you would then sell the jewelry later would most likely purchase from you WITHOUT factoring those things in.

The answer to the second part is that jewelry can be a far better “investment” than other non-necessities you might purchase. Because of the materials from which fine jewelry is made, it has intrinsic material value (unlike high-end electronics, furs, or other items that are not necessary, and in the same price range). And, if the jewelry is truly art (particularly by a prestigious designer, signed, and numbered), it will be an investment akin to other types of artwork.

David asks…

How can you buy gold bullion from the US government at the spot price?

Is there a way to buy in large enough volume so that you can go straight to the US mint to buy gold coins and avoid paying a dealer mark up percentage?
Do I need a license? Do I have not chance?
I am looking for physical gold that I can hold like a 1 oz coin. Or a gold bar like on the movies.

Justin answers:

You are confused.

The United States of America DOES NOT SELL Gold at the spot price.

The United States of America BUYS GOLD at the spot price and then RESELLS IT as a COIN for a far larger price.

For this reason nobody buys Gold Coins anymore as investments and they are only bought by coin collectors.

If you want to invest in gold then just open a brokerage account at TD Ameritrade or E*Trade and buy IAU or GLD.

Donald asks…

How do I invest in gold?

I want to invest in gold. What is the best kind to purchase? I see gold bars at 24K. Is that good? Should I invest in pure nuggets?

Justin answers:

The best way to own a precious metal is through a diversified metals fund, like the Franklin Gold & Precious Metals Fund or the Evergreen Precious Metals Fund. Another way is through a diversifed commodity fund, like the DWS Scudder Commodity Security Fund.

As for buying the bullion itself, good luck, you will never find a dealer that will give you it’s true worth when it’s time to sell, and anyway, why would near 30-year highs be a buying signal to you anyway? Are you insane?

Better to buy a diversifed series of properly asset allocated high-quality, low expense mutual funds. That’s how you should be investing, not jumping on some hot fad like metals. Gold and other precious metals should only ever make up 5-10% of your overall portfolio, depending on your risk tolerance. They are a good diversifer and an inflation hedge, not a way to get rich quick.

Hope this helps!

Daniel asks…

How much does gold price grow annually?Is this the right time to invest?

What is the best form to invest in gold?(coins,bars etc)

Thank you for you help! Looking forward to your answers!

Justin answers:

As mentioned, Gold fluctuates in price, but historically, has done well in the last 5-8 years, though it has seen some substantial drops. When the US Dollar is strong, Gold tends to go down in price, and when the US Dollar is weak, and/or our economy is having problems, investors tend to buy more Gold and so the price (supply/demand) normally goes up. It is used sometimes by investors to “balance” or hedge one’s portfolio, or collection of investment vehicles.

As for which form of Gold is best, that is a personal choice. Each form of Gold investing has it’s pro’s and Con’s. You can buy the metal itself in the form of coins or bullion, making your investment easier to liquidate, you just go to most coin stores/shops/dealers and they will usually buy your gold coins or little ingots/bars right on the spot. Or you can buy into “paper gold”. There are traded funds or ETF’s that TRY to track the price of Gold as close as possible, and actually back the security with the metal itself, meaning for every dollar of asset they have, there is real Gold in their holdings to back it up.

Is “this” the right time to invest? There is no way to predict the future yet, any investment can go belly up, or go down substantially or even go higher, at any given moment. I think that wondering about what our economy will do in the next 1-3 years is a better question. Even then, investing in Gold should usually be a small percentage of our total nest egg, most people will agree, it is not wise to invest all or even half of your money in any one thing. You are usually wise to spread it around a little to a few investments that hopefully compliment each other, or balance the portfolio out.

For example, maybe some into stocks, maybe some under the mattress, and maybe a tiny bit into a gold coin or two, just as an example (LOL) 🙂

DO YOUR HOMEWORK/RESEARCH no matter what, before investing, ok? 🙂

Good luck, and have fun!

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