There are several reasons why someone would want to buy gold bullion; to trade, as investment or as security against currency fluctuations. Whatever the reason you need to make sure that when it comes to buying and selling the commodity you know what you are doing. There are too many crooks out there who will take advantage of beginners so it is necessary to know the basics before you jump into the market.
There are two ways that most people buy gold and which one you pick depends on how much gold bullion you will be buying.
Hire A Dealer
If you have a large amount of money you wish to invest in gold bullion then you may want to think about hiring a dealer, especially if you will not be spending your own time studying the market. A dealer makes it their first priority to look for any dramatic changes in the gold market, try to get the best deals available and build a network of contacts with whom you can buy, sell and store your commodity with.
There are two ways in which most dealers prefer to be paid; they might choose to charge an hourly rate so that every minute they spend working for you is charged or they may wish to share in the profits that your gold makes. The latter is not so popular at the moment because of the uncertainty in the economy.
Go Through A Commercial Seller
If you have a smaller amount of money that you wish to buy gold with then the best solution is to use a commercial trader. These are companies which specialise in buying and selling large quantities of gold bullion and selling it at market value. They make their money by buying in bulk and getting large discounts or finding sellers who want a quick sale for less profit.
You can often negotiate a price with these commercial sellers as the value of gold bullion does not stay the same for very long. You need to choose whether you would prefer to invest in gold bullion bars or coins but again this is down to personal preference.
Store Securely
If you are a large gold bullion trader then the chances are you will be paying for a private storage vault either at a bank or specialist storage facility. Sometimes gold is traded and never actually changes hands but again this is only when the quantity is very big and the two parties are frequent traders.
Otherwise, you will need to find somewhere to store your gold that will not put you in danger from burglary. Do not store the gold at your home as it can increase the risk of theft and break-in. You can get in touch with your bank to see if they have storage facilities or you should get online to find one near you. The broker that you bought the gold off will probably have a secure storage service at an extra charge and this is likely to be highly protected because it is where they will store their gold as well.
Keep these basics in mind when you decide that you want to use some of your money to invest in the commodity of gold bullion. Do not rush into a purchase without checking the seller’s credentials, the current price of gold and your storage choices otherwise you may be left high and dry and missing thousands of pounds of your hard earned cash.
Sarah Boothman is a writer and marketing executive based in Yorkshire, England. She is an avid internet user and likes to share information with the rest of the world. One of her favourite businesses allows you to Buy Gold Bullion: www.ukgoldbullion.co.uk.
Article Source: http://EzineArticles.com/3347559
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