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What You Need to Know About Buying Physical Gold

What You Need to Know About Buying Physical Gold
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Posted: 06-16-2016 11:30:00 AM

When you’re looking for a way to invest your money, there are a wide variety of options available. Physical gold and gold coins are on the list, but you need to know what you’re dealing with. Some of the most frequent questions about buying gold bullion include things like the timing of your purchase and how pricing works. Just keep reading and you’ll know all the necessities soon. 

What You Need to Know About Buying Physical Gold

Is now a good time to buy gold?

We’ll start with one of the most basic questions. Is this a good time to buy gold? That question is very hard to answer, due to the market being extremely active. As of right now, it might be an excellent time to stock up on gold. Gold just breached $1,300 per oz., and it is still rising. This is the highest it has been in nearly 2 years!

While stackers tend to make their purchases when the spot price (the market price) of gold is low, prices trending upwards can also have the same effect. Savvy buyers will often lock in a purchase when gold starts rising, and watch as their recent purchase gains value! While this can be riskier than buying when spot is low, it has the potential to yield excellent results. The highest that the spot price of gold has been in the past few years was over $1,900, and stackers that locked in a purchase early on in that gold spike were certainly pleased!

Classic American Gold CoinsWhat determines the spot price of gold and the gold market?

While there are other factors, the price of gold per oz. is largely determined by supply and demand. Getting a feel for gold’s current level of demand is a bit easier than silver. Unlike silver, gold is primarily used for jewelry rather than industrial processes.

In addition to supply and demand, other factors that determine the spot price of gold are paper trading, currency strength, and general economic outlook. Gold is often hoarded in times of economic uncertainty as a way to preserve wealth.

How does the gold market work and what is live pricing?

Like other precious metals, gold is sold by the Troy oz. A Troy oz. is equal to 31.1 grams. That’s 2.8 grams more than a standard AV ounce.

The price of gold varies constantly during trading hours. At any time, the standard price of a Troy oz. of gold is called the spot price.

When you’re shopping for gold coins or gold bullion, you may notice something called live pricing. Live pricing is used to give you a fair price on gold in real time. Since the spot price of gold varies, so does the live price. When you add an item with live pricing to your cart, the price of that item will freeze for a set amount of time. This way you have the opportunity to pay the price you agreed to. Once an item with live pricing is added to your cart at MCM, the price is frozen for 10 minutes.

Why buy physical gold and other precious metals?1 oz. .9999 fine gold bars

While there are many reasons to buy gold coins or bullion, one of the largest is control. You decide how to store it and what to do with it. This gives many the peace of mind that some other investments do not offer.

Along with physical control, gold doesn’t take up much space. Even if you have hundreds of thousands of dollars in gold, it can be stored with ease and discretion. The difference is most easily seen when compared to silver. Rolls of Silver Eagles and Gold Eagles are both a couple inches in diameter and a few inches long. While a roll of Silver Eagles can be worth several hundred dollars, a roll of Gold Eagles can be worth over $20,000, depending on the spot price of gold.

The combination of physical control, currently low prices, and its ability to preserve wealth during times of inflation makes gold an appealing purchase for many.

Buying gold is easy at MCM. When you’re ready to purchase gold coins or other precious metals, you can be sure that MCM will have a variety of options that are right for you and your budget. There are gold coins that weigh less than 1 Troy oz., great deals on multiple oz. of gold, and everything in between. 

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About The Author

Brian Comp Jr. Brian Comp Jr. is a coin and bullion expert from Pennsylvania. He attended his first coin show at the age of 8 with his father in the late 90s. Brian has been working as a writer since 2011 and specializes in content that helps customers make good decisions. In his free time, Brian enjoys reading, checking out new coins, lifting weights, and drinking coffee. He’s always ready to answer questions, just email him at bcompjrservices@gmail.com.

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