How to buy and sell gold the smart way? 

How to buy and sell gold the smart way? 

In this age of free access to the Internet, buying gold is not at all difficult. However, just like every business, an investment must have an exit strategy. Before buying gold, you must ask yourself the question: “How will I sell it?”. We recommend the best way to sell your gold for higher price is selecting a gold buying company instead of pawn brokers or jewelry shops.

The idea is that people begin to consider how much the real value of gold that they have in their hands exceeds its value in one of the fixed currencies. Gold itself has been a form of money for thousands of years, and only recently has there been a shift in thinking toward dollar expression.

There is no doubt, it is important to be prepared. Investing in gold will be beneficial to those who understand how money really works. This understanding means that the time may come when you want to sell your gold or silver, invest in another class of assets, such as real estate abroad or economic citizenship.

For many, one of the biggest problems when buying gold is a good price. As with any other investment, a good price is obtained by minimizing the spread between the purchase price and the sale price.

The best type of gold to buy

According to experts, buying standard gold coins from national mints is the best way to invest in gold. That is, the best options are the Canadian maple leaf, the Vienna Philharmonic, and also, if you want, the American Golden Eagle.

Gold and silver coins with skulls or bayonets, the treasures of ancient shipwrecks, as well as nostalgic gold coins “before 1933” are all a much overpriced way to buy gold. Such coins, moreover, are much less liquid

Buying any special “designer” coins means that you will pay a higher spread for the pleasure of admiring the skull on the obverse of your gold coins. In addition, if you plan to internationalize your gold sometime, keep in mind that not a single dealer from anywhere in the world will be interested in a piece of gold with a skull.

Similarly, it is recommended that you avoid “special issue” coins, such as Canadian buffalo or elk. You pay an additional amount on top of the price of the metal, which may not be refunded if the limited edition does not play any role in the sale transaction and does not affect the price. So, it is recommended to buy the gold which is easy to sell and give you the best price at the end of the day.

Why is there a spread on precious metals?

In-kind precious metals and bullion often have a higher price than spot prices. A spot price is a price at which someone can buy certificates or futures on a commodity exchange. However, it is mathematically impossible, based on the trading volume of the paper market, for these so-called “paper” metals to be fully provided with physical precious metals.

Gold and silver in the form of ingots are often minted in 1-ounce coins or small ingots, from 1 to 10 ounces. This is a complex process that involves melting, stamping and certification while ensuring high quality and accuracy. Everything from design work to manual engraving should be included in the price. Therefore, it is normal for a 1-ounce coin to cost more than 1 ounce of actual metal.

Curiously, one of the inappropriate ways to minimize the difference in purchase/sale costs is to buy precious metals from banks. In India, these are such large banks, and old gold buyers, etc. In this case, the price of the ingot includes a value-added tax (VAT) of 18%. A gold bar is considered a commodity, so it is subject to VAT. Accordingly, when you decide to sell the bullion, no one will return the VAT. If you’re planning to sell your gold at the best price in India, then sell it and get cash for your gold in Karol Bagh.

Offshore Gold Storage 

As for offshore solutions, we have long recommended the Indian Companies and banks, gold buyers and sellers, with storage facilities. There are many independent foreign exchange markets and banks, as well as the absence of VAT on transactions with precious metals, makes Global gold a reliable and attractive partner.

The storage of gold in an offshore jurisdiction provides, first of all, the highest standards of security and reliability. This is an option for those who, living in their own country, are not sure about tomorrow, as well as tomorrow’s exchange rate of world currencies. Physical precious metals cannot be speculated, their value is time-tested.

Even though prices, for example, for gold have been declining over the past few years, growth was again seen at the end of 2014, which suggests that now, perhaps, it is time to make a purchase decision, not forgetting to calculate sales options. Precious metals can become both a reliable way to maintain wealth and a profitable way to increase it.

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