Investing in gold

The popularity of investing in gold usually increases with the price of gold and decreases with it. After more than four years, the precious metals are slowly returning to investors’ favor.

First, we have to answer in what form we want to buy gold. We have gold bars and bars as well as bullion coins, also known as investment coins. In both cases, the price is equal to the market value of gold (currently the benchmark is the London fixing of LBMA converted by the average exchange rate of the NBP dollar) plus a dealer margin (usually a few percent). As a rule, the smaller coin / bar, the dealer’s margin (in%) is higher.

For “retail” investments (up to 20-30 ounces), it is advisable to buy bourbon coins, although they are slightly more expensive than the bars. Coins are more easily negotiable and easier to verify their authenticity (eg using a scales and callipers or Fisch rulers). The standard size of the brewing coin is one ounce (1 ounce = 31,1035 grams), although there are also ½, ¼ or even 1/10 ounces of “denominations”. For larger investments, gold investment bars are available. The smallest weighs just 1 gram, but due to the high margins I would rather advise buying smaller bars than one-ounce. For big purchases, we use bars of 100 g, 250 g, 500 g and 1000 g. We only buy coins and ingots of a certain origin. We are only interested in the broth of the famous mints, all kinds of “occasions” to let others. The most popular gold coins are South African Krugerrand, American Gold Eagle, Canadian Maple Leaf, Australian Kangaroo, Austrian Philharmonic and British Sovereign. The bars should have a certificate of authenticity.

When choosing a dealer we are guided primarily by its credibility. We only select from the offer of large and serious sellers with an established opinion on the market. Most dealers – both large and small – sell via the internet. Later you can collect the gold personally or pay for shipping by courier (necessarily insured!). I would not advise shopping with a deferred delivery date – a gold coin in 45 days is just a promise and cheap credit for a dealer.