- 1). Understand what gold bullion is. It is investment-grade gold. Gold bullion can be in the form of coins or bars. It varies in purity from 22 karats to 24 karats. The purity isn't terribly important because prices of gold bullion are based on the amount of gold in the coin or bar. Gold jewelry and other gold items are not considered gold bullion.
- 2). Decide what kind of gold bullion you want. The most popular form of gold bullion is one-ounce gold coins. They are the easiest to buy and sell because every coin and bullion dealer uses them. One-ounce gold bullion coins are issued by government mints around the world. The best ones to own are the most popular. They include the American Eagle, the South African Krugerrand and the Austrian Philharmonic.
- 3). Only settle for the finest quality gold bullion coins. With gold coins, the value is increased by the quality of the coin. The less the coin is worn or touched, the more it is worth. Only buy gold bullion coins that are in "gem uncirculated" condition. They must come in a protective covering and should have no fingerprints or scratches of any kind. Do not ever touch a gold bullion coin with your bare hands and never clean a coin. You will only reduce its value.
- 4). Be wary of certified coins. There are many coin-grading services that assign a grade to gold bullion coins, then encapsulate them in plastic. This supposedly guarantees the quality and authenticity of the coin. It is also an excuse for dealers to charge you more for the coin. Gold is gold. A little piece of paper saying one coin is better than another isn't always worth paying significantly more. As long as a coin is genuine and flawless to the naked eye, it will retain its value as a gem-uncirculated coin.
- 5). Search the Internet for the current price of gold. Gold prices change daily, and gold dealers base their prices on the daily rate. You need to know the current price of gold so you wont get cheated. Gold prices are stated as dollars per ounce.
- 6). Find a reputable gold bullion dealer. The best place to buy gold bullion is at a shop that specializes in precious metals. Look for someone with a long history in your community who lists their buy and sell prices for everyone to see. A reputable coin dealer will also sell you gold bullion, but may not have the selection and quantity that a bullion specialist does.
- 7). Ask the gold bullion dealer for discounts and deals. In some states, there is no sales tax on gold transactions more than $1,000. Many dealers will give you a price break if you buy large quantities. Some offer free shipping and insurance if you buy a certain amount. Always inquire about their buy back policies.
- 8). Turn to the Internet. You can also buy gold bullion yourself over the Internet on auction sites like eBay. Understand the risks of buying on Internet auction sites. You are sending your money to a stranger hoping they will mail you gold bullion. Be sure you are dealing with a reputable seller and insure all shipments.
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