Wednesday 5 March 2014

The Buy Gold Experience - Avoiding The Pitfalls

Buy gold
In this era, to buy gold is not as simple as it may seem to be. Well, this is not to say that there are no genuine sellers, but there is no dearth of corrupt dealers and scam masters too.

Many have been fooled in the process of buying gold, mainly due their own stupidity making it imperative for all prospective buyers to thoroughly examine an anticipated deal before purchasing gold. Because of the prevailing high prices of this metal, a number of unscrupulous elements have appeared who are good at convincing simple investors to purchase gold at extremely high prices.

Gold is undoubtedly among the most valuable metals known to us. It’s very expensive because it is highly valued. That’s why it is very important to be extremely careful in buying gold lest someone should take you for a ride.

The best way to buying gold is to go online.  An important benefit of buying it online is that you get a large variety of different kinds of gold to select from. The other advantage is that online buying can be accomplished without having to go out of your home and the stuff is delivered to your address.

On following a couple of easy rules, you can avoid getting into any trouble.

You should recognize the person you are going to deal with. You may come across some person calling you on phone or approaching you on cable TV or trying selling you a so called rare coin through some website. You don’t know that person. How do you know that he is not a junk dealer? Why should you trust him?

You are quite likely to find some people selling gold coins through the Internet. They earn their commission on selling at a price more than the current price of gold. They don’t sell usual gold coins. Instead, they will offer you rare gold coins, their favorite being US Double Eagles. You are informed that such coins can’t be confiscated. Now, how can you believe him, as the government is capable of doing almost anything it wishes these days?

Then, there are dealers who may offer you the convenience of keeping the gold bought from them in their secure vault, meaning that they owe you that gold. Even if the dealer is legitimate, you should keep away from such an arrangement. The dealer has sold you fictional gold and offers to store the same in a fictional secure vault.

Another trick is selling you shares and bonds of gold mining companies. You should be able to sense that it takes many years for a gold mining company to get fully operational and start making money.

Now, there are some people that like to buy gold coins through eBay auctions. The coin for which you may bid could indeed be rare but how do you assess its worth! Its grading is a specialized job and there are companies as well individuals offering grading services. The seller may be linked to a grading service that could over grade the coin for obvious reasons and you would come to know its real worth only when you want to sell that expensive coin in the market.

Refrain from purchasing rare coins unless you are well informed on that subject. Whatever be your reason for buying gold, it is rarely profitable for inexperienced people to invest in coins made from precious metals.

There is none denying the fact that when you buy gold, you prepare to beat inflation, and there are a lot of ways to acquiring that precious metal, but not all those ways of buying are suitable for all kinds of investors.

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