How to Buy Gold Bars the Right Way

If you’re looking for the embodiment of value, you don’t have to look further than gold bars. There’s just something about gold that screams value. This is not a new development. Cultures throughout thousands of years have always looked at gold as a trusted store of value. It doesn’t matter whether we’re talking about the Aztecs in North America or Greeks in Europe or Egyptians in North Africa or the Chinese in Asia. Cultures from all over the world pretty much agree that gold is worth something. This is why if you are looking to diversify your investment portfolio by investing in the mother of all precious metal investments, gold, you need to be systematic and methodical about it. There’s always a wrong way and a right way to do things. This is definitely true when it comes to buying gold bars. Just because you want to buy gold bars, it doesn’t necessarily mean you can go straight to the first dealer you come across. That is the fastest way for you to say goodbye to your hard earned money. You have to figure out how to buy gold bars the right way. Keep the following guidelines in mind.

Determine the amount of money to invest

First and foremost, you have to be clear as to your investment goals and strategy. You can’t just wake up one day and think that you need to buy gold bars. It doesn’t work that way. If you’re looking to figure out how to buy gold bars the right way, you have to have an investment strategy. You have to look at your overall investment funds and look at where you invested in currently. Are you looking to diversify? Are you looking to build up your precious metals holdings? What is your exit strategy? You have to answer these key questions before you decide and figure out how to buy gold bars. Otherwise, you may end up making a very bad investment decision that can haunt you years from now.

Decide which gold bar to purchase

The reality is that gold bars are often fungible. One gold bar is the same as the other gold bar. With that said, different have different gold bars they on offer. Forget what you have seen in cartoons. When you watch cartoons and you see a gold displayed, you’re often looking at gold bricks. While those forms of gold bullion still exist, there is a wide range of gold bullion. There are smaller sizes. There are medallion sizes. There are thick bricks. Gold comes in many different sizes. Decide which size of gold bar to purchase.

Find a dealer you can trust

This easier said than done. Seriously. It’s very hard to find a gold dealer you can trust if you haven’t done business with that dealer before. Word of mouth can only go so far. In light of this reality, it’s always a good idea to go with a dealer that is accredited. The more accreditation a particular dealer has, the higher the likelihood that you can do business with that dealer and not get ripped off. This is a key step in figuring out how to buy gold bars the right way. The next step is to look for a track record. Make sure that this gold dealer deals in gold bars in a high enough volume. You don’t want to be in a situation where you’re paying a premium for gold bars that you could have bought a cheaper price at another dealer. Finally, you should look for a dealer of gold bars that is financially stable. While size is not a slam dunk shorthand for financial stability, it is a good indication. If you are looking at a gold dealer that has many branches and has been making money year after year, chances are pretty good that the particular dealer of gold bars you’re dealing with will not run off with your money or stiff you in any way.