Congratulations on taking the first step! If you’re still reading this article it means you’re interested in buying gold. But buying gold should be a carefully considered decision towards your personal goal. The next question now is – what type of gold is right for you? Should you buy and own physical gold or a piece of paper? (A security that gives you the legal entitlement to a certain amount of gold)
Having physical gold is great. You get to touch it and feel it. Plus, it’s mobile so you can always carry it with you to any part of the world and exchange it for whatever you want later on. Most individuals like to hold physical gold in times of financial crisis as it becomes valuable.
However, there are drawbacks of owning physical gold:
- Gold sellers will only sell gold to you IF you spend a certain amount
- Gold sellers charge a high price to sell and deliver the gold to you – refer to premium spot here
- There’s a high risk of losing it or it being stolen.
These are the common reasons why most individuals end up buying securities instead. It is affordable and much more convenient way to buy, sell and store gold.
Below is the outline of the options available to average consumers and how they fare against a number of features we’d all like to enjoy when buying gold. You can see them in detail in the next sub-chapters!