Whenever people worry about the economy, inflation or have general uncertainty about their future, they invest in gold. So what’s the safest way to buy gold? The answer depends on if you want to buy physical gold or if you are thinking of investing in paper assets like gold mining stocks.
If you are just buying paper assets, you can work with any investment company to do so. And is it safe? It can be, but you won’t get the benefits of owning a tangible asset like you do when you buy gold coins or bars.
Now, if you want to buy actual gold that you can hold in your hand, the safest way to do that is to work with a reputable dealer like Swiss America that has been around for over 40 years. This article covers why people invest in gold, the ways you can invest and how to get started.
Types of gold investments
You have several options to buy gold. Here are the top 5:
Option 1: Investing in gold bars and coins
This is the most direct way to invest in gold and gives you all of the benefits we shared above. Owning gold bullion coins or bars gives you a tangible asset and a way to reduce your risk against economic uncertainty, inflation, and catastrophic events.
To safely buy gold coins or bars, it’s best to work with an established precious metals dealer like Swiss America. Choosing a company that’s been around for decades means you can expect high-quality authentic metals and secure transactions. You also get the benefit of expert guidance and a full selection of metals.
Options for buying physical gold:
Gold coins: Gold coins like American Gold Eagles or Canadian Maple Leafs are a safe bet for investors. Since they’re made by trusted government mints, you can buy them knowing they’re authentic and meet strict purity standards. They do cost a bit more than bars, but their unique designs and popularity make them worth considering.
Gold bars: Gold bars come in all sizes, from small 1-gram pieces to big 1-kilogram ones. They’re usually less expensive per ounce than coins because they don’t have intricate designs or any collectible value. If you’re looking to get more gold for your money, bars are a solid choice—as long as you stick to a trusted dealer to make sure they’re authentic.
Option 2: Gold IRA
You can use a portion of your retirement account to invest in gold bars or coins. The way this works is that you convert your existing IRA or roll over your previous employer’s 401k to a self-directed IRA. You’ll choose a precious metal custodian to manage your account and guide them on which assets you want to buy.
There are a few rules for these accounts, such as which metals qualify and that your custodian must handle the storage until you retire.
Option 3: Gold stocks
You can invest in various gold stocks, like gold mining companies. These stocks follow the price of gold but are also affected by how well the company performs and overall market trends.
While this lets you benefit from both gold and the company’s growth, the value of the stock can rise or fall depending on factors beyond gold prices that bring additional risk.
Option 4: Gold ETFs and mutual funds
Pooled funds like exchange-traded funds (ETFs) or gold mutual funds let you invest in gold through a mix of assets. Since these funds get traded on stock exchanges, they lower the risk compared to owning only one type of gold investment.
The challenge with these paper metals is that they have management fees. Also, the performance of the fund may not always match gold prices exactly.
Option 5: Gold futures
Gold futures are contracts where investors agree to buy or sell gold at a set price on a future date. You can control a large amount of gold with less upfront capital, which can lead to bigger gains but also comes with high risk.
Ensuring safe transactions
To make sure you safely buy gold, follow these guidelines:
Choose reputable dealers
The first step is choosing a reputable precious metals dealer. Your best bet is to work with a company like Swiss America that has been around for decades. Why? Because they have a proven track record and you can easily check out customer reviews.
The dealer should also participate in industry trade organizations like the American Numismatic Association or the Industry Council for Tangible Assets. This shows their commitment to high-quality, authentic metals.
Finally, the dealer should provide educational resources to help you make investment decisions. This can be in-depth research reports or more informal industry news or trends.
Verify authenticity
To make sure you’re getting authentic metals, ask the seller for the serial numbers so you can check them with the mint or manufacturer that made the metal.
You should also request certificates of authenticity from trusted grading services like Numismatic Guaranty Company (NGC). These certificates verify the metal’s authenticity and condition. And don’t forget to insure your shipment and require a signature when it arrives.
Understand pricing
The spot price of gold is what you see when you search for “current price of gold”. You’ll pay a higher amount per ounce than this, which is called the premium. This incremental difference covers the manufacturing and distribution costs.
Look for transparent information on premiums, shipping costs, insurance, sales taxes, and any potential buyback policies. This will give you more confidence in your investment and help you make smarter choices every step of the way.
The spot price of gold is what you see listed as the “current price of gold.” You’ll pay more than this per ounce, which is called the premium. That extra cost covers manufacturing and distribution.
Before you buy, take a look at things like premiums, shipping costs, insurance, sales taxes, and buyback policies. Knowing these details ahead of time can give you more confidence and help you make better decisions.
Storage and security
Once you have your gold, also consider how you’ll safely store it. Most of the investors we work with go with one of these options:
Home storage: You can keep your gold in your home safe which gives you easy access to your metals at any time. Be sure to use safety measures to reduce the potential of someone stealing your gold.
Bank safety deposit box: Banks offer deposit boxes that might work if you have a smaller amount of gold. The drawback is you can’t access your gold at any time. Note that FDIC insurance does not cover precious metals.
Depository: A final option is to use a third-party depository. This is a secure facility that stores precious metals on behalf of investors.
Benefits of investing in gold
There’s many reasons why investors choose to buy and hold gold as part of their overall portfolio, such as:
Inflation hedge
Gold retains its value when inflation rises or when paper money weakens. Unlike cash, which can lose purchasing power, gold remains a reliable way to protect your wealth.
Government central banks also rely on gold for portfolio protection, and as of Q2 2024, their purchases have increased 6% year over year. In fact, Gold.org reports that central banks have been buying more gold than ever since 2023.
Diversification
Investors add gold to their portfolios to diversify their assets and reduce risks. Because stocks and bonds are unpredictable, they hold gold as a way to preserve wealth. That’s why you’ll see experts recommend holding about 5%-15% of your portfolio in gold assets.
Easy to transport and convert to cash
Gold’s high value in small quantities makes it easy to store and transport. As of this writing, gold is about $2,600 an ounce. This means that you can carry about $26,000 worth of wealth in a bar roughly the size of a cell phone.
People around the world recognize and value gold, so it is easy to sell and trade in different markets. This global liquidity makes it a convenient investment that you can quickly convert into cash almost anywhere.
No counterparty risk
Gold doesn’t rely on a third party for ownership. It doesn’t matter if a company has a bad quarter, a bank goes under, or a cyber attack shuts down digital trading. Physical gold coins or bars don’t depend on any of that.
Why investors choose Swiss America
Thousands of investors turn to Swiss America for their gold investments. With over 40 years of experience, we’ve helped clients navigate economic changes, earning a reputation as a trusted partner in the precious metals market.
Our clients appreciate the timely delivery of high-quality metals and our responsive customer service. We also provide expert advice on storage, precious metals IRAs, portfolio strategies, and market trends to help you make confident decisions.
We also provide competitive, transparent pricing and a gold trade program that makes it easy to sell your metals if needed.
Best way to buy gold
There’s many ways you can invest in gold but the best way to actually own the physical asset. No other approach gives you the same control and independence from stock market ups and downs or economic uncertainty.
If you want to learn more about investing in gold bullion, connect with the Swiss America team today!
Safest way to buy gold: FAQ
What is the safest way to buy gold?
Buying from trusted sellers is your safest option. Across the world, countries widely accept gold which makes it a secure investment choice.
What is the safest way to invest in gold?
The safest way is to spread your money into different gold investments. This could be owning physical gold, buying gold-backed funds, and investing in gold mining companies. This will help lower your risk while letting you benefit from gold’s ability to protect its value against economic troubles.
What is the most profitable way to buy gold?
It depends on market conditions, but many investors choose to buy physical gold, like coins or bars, and hold onto it long-term, which can offer solid returns.
Note: The information in this post is for informational purposes only and should not be considered tax or legal advice. Please consult with your own tax professionals before making any decisions or taking action based on this information.
