How to Buy and Sell 1 Oz of Gold

Gold has been dubbed as the perennial currency for its intrinsic value. Unlike currencies such as the dollar, peso, or the yen, this precious metal has a set value, making this a more stable option for investors, since it won’t fall prey to the effects of inflation. This article lists some tips you can follow when it comes to buying and selling of 1 oz of gold.

Facts to know when buying or selling 1 oz of gold

Before looking at some suggestions in how to buy and sell 1 oz of gold, it’s important to understand some facts about these gold pieces.

When it comes to price, some experts argue that 1 oz of gold will give you more value for your money, as opposed to smaller or larger pieces of gold. Furthermore, these are easier to sell, since there is quite a high demand in the market for these pieces.
1 oz of gold can usually be bought in bullion coin form, although it’s possible to buy these in bar form as well. Some investors prefer purchasing bar forms of 1 oz of gold because these are slightly cheaper compared to the coins.

For those buying the coin form of 1 oz of gold, most prefer purchasing those that do not have artwork, primarily because these are much cheaper. On the other hand, those who like collectors’ items prefer buying the coins with designs. In most instances, pieces that are being marketed as 1 oz of gold may actually weigh less or more than 1 ounce.

How to buy 1 oz of gold

Some of the things you will need to do before you buy 1 oz of gold are:

Doing your proper research. Before you head to the store, make sure to take the time to do your research about the establishment selling the gold first. That way, you can find out whether the company is legitimate or not. Also, be sure to do your research on the kind of gold being sold by the store, as it’s possible that it may not be offering pure gold to customers.

While getting an alloy is not necessarily a bad thing, it can significantly affect the price of the gold being purchased. The rule of thumb followed by gold investors is that a gold piece that has less than 24 carats is mixed with another type of metal, which would make the 1 oz of gold cheaper.

Some of the things you will want to research on include:

• The current buying and selling price of 1 oz of gold;
• The actual weight of the gold;
• The condition of the gold (make sure it does not show any signs of wear); and
• The reputation of the seller.

Choose to buy offline instead of online. While there are some companies that are now offering 1 oz of gold over the Internet, most investors continue to prefer purchasing their gold from brick-and-mortar stores instead of online. This is because there is a higher chance of getting swindled of the gold is bought over the Internet, and falling victim to one of these scams can mean losing a lot of money in the process.

Even if the online store is said to be a reputable dealer of 1 oz of gold, it’s still difficult to make the purchase over the Internet, since something might go wrong in the process of the gold being delivered to you.

Scout around for the best price. Make sure to check the different reputable stores so you can find out which of these has the best offer for you. Do note that it’s possible that the prices they will be offering you will slightly differ from the price you came up with in your research. This is because the retailers mark up the price in order to make a profit. Use the value you arrived at as a guide to help you in choosing which company has the best rates.

Also, don’t be afraid to ask for discounts, as some retailers offer price cuts, especially to those who will be buying large quantities of the precious metal. There are also some gold retailers that offer free insurance if you reach a requisite amount.

Get insurance. Gold is a very precious commodity, which is why you need to take steps in order to protect it. Purchase insurance. This is particularly important if the gold will be delivered to you, as you will need to ensure that your purchase is protected even during transport. It is also a good idea to get a safe deposit box at your bank to store your pieces of 1 oz of gold.

How to sell 1 oz of gold

If you’re interested in selling 1 oz of gold instead of buying it, here are some tips for you to follow:

Do your research. Doing your research is just as important in selling 1 oz of gold as it is in buying it. If doing research on the Internet, look at high authority/high content sites like CNN, or  Huffington Post.  Also .edu and .gov sites can provide solid, good information. Make sure to check what the selling price of gold is so you will know what value to work with. Make sure that the price you arrive at is appropriate to the kind of gold that you are selling.

Again, pure gold has a different price compared to gold mixed with another type of metal. Check to see whether the gold you have may also have content or collector interest. For example, limited-edition 1 oz of gold coins are much pricier compared to unmarked gold.

Choose a reputable retailer. Again, it’s important for you to do your research on the background of the retailer, as this will give you an idea about whether or not he or she is trustworthy. After all, you will be dealing with potentially a sizeable sum of money, so it is important that you choose a reputable company to transact with.

Gold is highly prized by buyers and sellers alike, not only because it is attractive to look at, but also because of its intrinsic value. The problem with purchasing 1 oz of gold is that it is very much highly in demand, which is why it can be difficult for buyers to look for these. On the other hand, those who are looking to sell their 1 oz of gold should have little difficulty in selling these.

Are you are serious about buying or selling gold like American Gold Eagles or silver but don’t have the knowledge? Want to be sure you don’t fall victim to precious metals scams?  Learn About Investing In Gold & Silver for world class information and knowledge, 100 % free of charge.

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Tags: 1 oz of gold, gold price per ounce, how to buy gold

This entry was posted on January 22, 2012 at 12:24 pm. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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