How to Buy Physical Gold

If you are reading this article, chances are that you are aware of the rapidly escalating worldwide credit and banking crisis and the crumbling fiat monetary systems. Most likely you are worried about inflation eating up your hard-earned savings, the stock market malaise, and the deflation in the housing bubble crushing your home value. Buying physical gold is an excellent hedge against inflation, and against almost any type of crisis. You won’t find a single fiat currency throughout human history that has stood the test of time – all of them went to their intrinsic value zero. Gold on the other hand is the ultimate form of money, because it cannot be destroyed through inflation and is nobody’s liability.

You can buy physical gold in the form of gold bullion bars, contemporary gold coins (gold bullion coins), numismatic gold coins, and of course gold jewelry. For the purpose of this article we’ll assume that most people are interested in buying gold bullion coins and gold bullion bars. The most popular gold bullion coins are the Canadian Maple Leaf gold coins (1/20 oz, 1/10 oz, 1/4 oz, 1/2 oz, and 1 oz), the South African Krugerrand (22 karat gold), and the American Gold Eagle. Many companies manufacture gold bullion bars worldwide, but one of the most respected producers in the business are Credit Suisse, and Johnson Matthey.

Buying Gold from Online Bullion Dealers

The easiest way to buy physical gold is using an online gold bullion dealer. One of the most reputable online gold bullion dealers is Kitco a Canadian company based in Quebec. In the US you can buy gold online from Blanchard and Company. In Canada you can buy gold coins directly from the Royal Canadian Mint. Before purchasing gold online, make sure that you are dealing with established company with excellent reputation that has been in the gold bullion business for some time. Avoid buying from new/unknown companies or auction sites like eBay – it’s gold you are buying after all.

Buying Gold Locally

You can buy gold from local coin shops as well. When buying locally, again make sure that you are buying from a trustworthy company. In Canada you can order gold bullion and gold coins from some of the big banks, but keep in mind that ordering bullion coins may be subject to tax in Canada.

Things to Consider When Buying Physical Gold

If you buy physical gold you will have to store it somewhere. Keeping the gold in your house entails some risks, and if you don’t feel comfortable doing that you might want to consider getting a safety deposit box. Owning physical gold is not for everybody, so think twice before making decision to buy or not to buy. If you decide to buy physical gold consult your financial advisor and accountant and ask them about possible implications of owning physical gold (suitable investment portfolio allocation, tax reporting, etc.).

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