Buying gold online is the best way to invest in the precious metal. However, there are many different ways to buy and hold gold, so it’s good to first understand the different types of investments, how they relate to your goals and which one works best for you. In this article, we’ll be looking at steps to help you buy gold online.
The first step when buying gold is deciding on the type of gold you want to buy. There are three main types of gold.
Usually, the best way to hold your gold is with physical, gold bullion. That’s because unlike many other investments, it’s an asset that you can touch and hold in your hand. No politician can take it away from you, it maintains its value over time and acts as a hedge against inflation.
To buy physical gold you can either buy online or through a brick and mortar gold dealer, but the cheapest and best way is usually with an online dealer. That’s because you can easily buy it online and only pay a little extra to get it stored and insured. When buying gold online, it helps to be aware of the taxes you may need to pay and where to store your gold if you want to get it delivered.
A gold ETF is a financial instrument that tracks the price of gold over time. An ETF is essentially an asset that is backed by gold – although you won’t actually own the gold yourself. It’s a way to expose your portfolio to gold inexpensively without actually owning gold. You can buy, sell and trade a gold ETF like a stock through an online brokerage. The only issue is that you won’t reap the benefits of owning gold bullion since you won’t be the one owning it.
Finally, another popular way of buying gold is by owning stocks in gold mining and distribution companies. These are companies that are involved in gold and are part of the supply chain; either producing or distributing gold. Their share prices go up and down and aren’t always linked to the value of gold; they mostly depend on how the business is doing. You will need to buy those through your online broker.
How much gold do you want to buy? This will mostly depend on your budget and goals. Most investment experts recommend holding 10% of your portfolio on gold – but this is dependent on your own goals as an investor. It’s worth setting up a budget and an emergency fund so you have a plan for your gold. You’ll also want to decide whether to buy gold coins, bars, ETFs or other gold assets.
There are hundreds of online and in-person gold dealers in the UK. We have written a guide on how to buy gold from a safe and regulated dealer so you don’t get scammed and buy counterfeit gold bars. You want to make sure the gold dealer you choose uses a well-known gold refinery, has some history and background and is regulated by a financial institution. At Minted, we are regulated by the FCA and you can check out our top reviews on Trustpilot.
Do some research on your gold dealers to make sure they are legit, and stay away from sites like eBay and Craigslist!
Once you know how much gold you want to buy and with which dealer, you can start buying! There are a few investment strategies you can implement to buy your gold; for example, with pound cost averaging, you can buy a small amount of gold every month – instead of saving up and buying it in huge chunks. With Minted, for example, you can set up a purchase plan for as little as £30 per month!
When you’re first getting started, your best bet is to buy bullion through an online dealer that will take care of storage and insurance. That’s because if you do decide to get it delivered home, you will need to invest money into a safe, burglar alarms and safety equipment. By the way, your first year of buying gold with Minted is free for your first 200 grams!
At Minted, we’ve made it as easy as possible to buy bullion gold online. You won’t need to commit to a contract, pay large upfront charges or spend hours searching the website for our fees. We started Minted because we wanted to make buying gold easy, accessible and affordable.
With Minted, you own the gold you buy: we only purchase gold bars of 10 grams. So once you reach the 10 gram threshold through our platform, you’ll be able to get your gold delivered and only pay a shipping fee.
Buying your gold online is the cheapest and safest method to own some of the safe haven asset. With this step by step process, you’ll be on course to owning the right amount of gold and keeping your portfolio and wealth safe and secure.