Thinking Of Buying or Selling Gold Bullion? Consider These Factors Before Investment

by Xavier Hennings Marketing Manager

Gold is the most traditional form of investment. In olden times, there were no gold stocks or ETFs to trade. Gold bars and gold coins were the only options to protect one’s wealth. And even to this date, investment via gold bullion is considered by most Australian investors as the safest and reliable asset.

Choosing a reputed precious metal refinery is not the only task as you need someone who can be trusted with your gold. But apart from that, other factors must also be considered before taking any decision.

Here, we have attempted to list down some of the important factors before buying physical gold.

1. Location: There are many physical stores in Australia to buy gold from. Before visiting any of them, thorough research must be done about the dealer to know their reputation and position in the market. Some of the reputed gold dealers in Australia are:-

a) The Perth Mint

b) Gold Stackers

c) ABC Bullion

d) Guardian Gold

e) Ainslie Bullion

f) Aussiemint

2. Online Options: Not only from stores, but you can also buy gold bullion from online dealers conveniently. An online marketplace like eBay and many other precious metal purchase forums provide a platform for investors to buy and sell gold bullions without having to come to the stores. However, one must do complete research about the sellers’ genuinely and reputation before buying online.

3. Method of Gold Production: It is always good to know about the source of the gold your dealer is giving you. Is it refined and produced by a reputed gold refinery or not?

4. Premiums and Commissions: This one goes without saying. Compare with other dealers and go for the dealer offering the best reasonable price of their gold. Dealers ofter include their commission in the purchase price. And to check the purity of the metal and verify its authenticity, an assay fee is also charged.

5. Price comparison: Since the price of gold is always quoted in US dollars, it is important to check the price of gold offered by the dealer with the current market value of gold in Australian dollars.

6. Delivery: Another important factor apart from the gold price is its delivery to you from your dealer. One must know how the dealer is going to transport the gold from the precious metal refinery to you. Do they have their storage systems to allocate? Will it be insured against any mishappenings during the delivery process?

Now once you have worked on each of these above-mentioned factors, and purchased the gold, it’s time to think about its safe storage. There are many options available for this purpose.

1. Bullion Dealers: While looking to purchase gold from a specific dealer, also check about the storage options they are offering to safely store your gold bars and coins. They would charge a fee for this.

2. Safety Deposit Boxes: You can rent a safety deposit box at a bank to secure your gold bullion.

3. Secure Vault Storage: Consider this option when you need a high-security storage solution. Research companies providing this service.

4. At Home: If you want to keep your gold bullion at home then ordinary lockers in your closet or wardrobe will not be wise. Get home safes installed that come with robust security systems to keep your valuables.

In this case, also get your home insurance updated so that the policy also covers your gold.

Wrap Up

There are plenty of gold refineries in Australia that are producing gold and there are even more gold dealers who can bring that gold to you at various prices. Hence a lot of time, patience and study must be invested in deciding on choosing that perfect dealer who can give honest and expert advice and offer a good deal for investment into physical gold.