Gold bars are the most popular type of gold to hold as an investment or store of value, as it is generally easy to sell and holds its value well. Founded in 1976, Bankrate has a long history of helping people make smart financial decisions. We have maintained this reputation for more than four decades by demystifying the financial decision-making process and giving people confidence in the following actions. One of the most emotionally satisfying ways to own gold is to buy it in bullion or coins.
You will have the satisfaction of looking at it and touching it, but the property also has serious drawbacks, if you have more than just a little. One of the biggest drawbacks is the need to safeguard and secure physical gold. You can easily find places to sell your gold bars online. However, you are likely to have a better experience if you opt for a reputable precious metals company.
Otherwise, you might come across some nasty characters who can be aggressive and misleading when negotiating if you don't check out buyers first, and while there is something to be said about face-to-face negotiations with a local coin seller or pawn shop, they may try to lower you or convince you to accept a price lower than the real value of your gold bars. On the other hand, a reputable precious metals company is more likely to make a fair offer. Generally speaking, the most commonly recognized products are the most liquid. That is, they are the easiest to sell at the best prices.
These include products such as the American Eagles and Canadian Maple Leafs of gold 26% silver. The third characteristic to identify is if you have bars or coins. Typically, the retail purchase price of coins and rounds is higher than that of bars. While some gold buyers plan to buy bars with the intention of keeping them forever, most people will at some point sell their bars.
The best way to ensure that you have as wide a market as possible when it comes time to sell your bars is to buy recognizable bars, such as those listed above. On the contrary, the main advantage of buying physical gold (such as bars and coins) is that you own the gold. Scottsdale collectors might think that gold in these forms would be easy to sell, and it can be, since it is a precious metal attractive to many collectors and other buyers. Some see gold as a hedge against inflation, as the Fed's actions to stimulate the economy — such as near-zero interest rates — and public spending have caused inflation to rise rapidly.
Either way, the main reason people sell their gold is that they need to liquidate their investment. The goal of ETFs like these is to match gold price performance minus the ETF's annual expense ratio. Three of the largest ETFs include SPDR Gold Shares (GLD), iShares Gold Trust (IAU) and Aberdeen Standard Physical Gold Shares ETF (SGOL). Another way to take advantage of rising gold prices is to own the mining companies that produce the material.
You'll also learn about some of the most common Gold products and how to calculate the price you can reasonably expect to get. Conversely, people interested in gold bars need to work with an authorized retailer or dealer. However, it is important to note that online coin traders do much more business than local coin dealers, so the price at which you can buy a gold bar from your local coin dealer may be slightly higher than at an online dealer. Investing in gold isn't for everyone, and some investors just bet on cash-flowing businesses instead of relying on someone else to pay more for the shiny metal.
Gold futures are a good way to speculate on the rise (or fall) in the price of gold, and you could even receive physical delivery of gold, if you want, although physical delivery is not what motivates speculators. For example, if you have gold bars that you have inherited, it is understandable to consider a possible sentimental or future value before selling. Gram Gold pieces, whether rounds, bars or coins, were easier to exchange than full troy ounce sizes. That's one of the reasons why legendary investors, such as Warren Buffett, warn against investing in gold and instead advocating.