Where to buy gold?
Our basic recommendation is to buy gold from reputable precious metal traders. We anticipate this conclusion because there are good reasons why you should turn to specialists when investing in gold coins or silver bars. Here are the most important arguments:
- Large, investment-oriented product selection with reliable product quality
- Transparent sales and purchase prices, always close to the current precious metal value
- Mature order and dispatch system for online orders
- Reliable ordering and delivery service as well as customer service
However, gold coins and other precious metal products are of course also available from other sources. We have examined the most important ones for their alleged bargain potential.
Precious metal traders
But who is now the cheapest supplier among the precious metal traders? The cheapest trader does not exist. All work with mixed calculation. This means that they always offer cheaper products to attract new customers. They earn their money with other products. That’s what every retailer does these days, across all industries. However, some suppliers specialize in certain types and can realize more favorable sales prices in this segment due to their market position. This is the case when they receive the goods directly from the large mints, e.g. direct customers of Rand Refinery (Krugerrand gold coins), Perth Mint (e.g. gold kangaroo) or Royal Canadian Mint (gold and silver maple leaf). It is therefore advisable to have several traders in your portfolio. Make sure, however, that they are not fraudsters. Otherwise the alleged bargain will quickly become a financial fiasco.
Buying gold from banks is not a good idea in most cases. With the exception of some savings banks and the travel bank branches, you have to be prepared for a very limited selection, longer delivery times and outdated prices. Usually the lists are adjusted only once in the morning. Prices that are accurate to the second are not always guaranteed. And as a rule one must have an account with the bank. In short: for banks, selling gold is a low-yield service business for existing customers. However, a bargain can be made at banks. This is when the price of gold has risen sharply over the course of the day and the employees are still sitting on their previous day’s rates. However, this is only a very theoretical opportunity.
Some years ago one could buy gold again and again also with Discountern such as Lidl or Schlecker. Whether the goods turn out to be bargains can only be determined on a case-by-case basis. How high is the premium, i.e. the purchase price of the coins above the pure gold value? What do comparable coins cost in specialist shops? Discounters usually set fixed prices. These prices remain until the offer is out of stock. If the gold price rises strongly in this period, then very favorable purchase opportunities can result here. Important: These retail companies ship at favourable conditions, usually by post. In case of doubt, however, the goods are not sufficiently insured when they are shipped and the postman will gladly hand them over to the neighbour without being asked if you are not at home. Generally applies: Here one can make genuine good deals or fall however also on the nose. Always compare prices precisely and weigh up the risks in each individual case. Also to be considered: Discounters or providers from outside the industry often only enter with corresponding offers when gold is on everyone’s lips and the gold price has already risen sharply. Gold is used as an attractive offer. This can also be an indication for an upcoming price correction, because the market is already “overbought”.
You can also buy gold and silver on eBay & Co. Good luck, though, if you want to make a real bargain here. The people acting there are usually well informed about the market prices. The probability of catching a counterfeit here is all the greater. Those who buy gold and silver on eBay should only do so by trustee service. This makes shopping even more expensive and reduces the potential for bargains.
Investors should generally avoid the offers of the relevant TV shopping channels (HSE24, QVC, etc.). There are no bargains there. Articles offered via such a distribution channel always have enormous margins. These cannot be achieved with investment gold. That is, these gold coins are always mercilessly overpriced measured at the pure gold value. The customers are often left unclear about the true gold content / gold value and mostly the pieces come from the category collector coins “with high appreciation potential”. In times of crisis, however, in case of doubt you will only get the pure gold value. Nobody will be interested to know that the gold coin has a hinged door with platinum application and a beautifully coloured silver eagle.