Buy Gold

The real-time quotation of gold is visible through the table below.

The Price of Gold

The task of the LBMA (London Bullion Market Association) is to set the price of gold twice a day. It is fixed at 10:30 AM and 3:00 PM during an auction, (called the London Gold Fixing) by 5 authorized brokers.

The LBMA trades almost 700 tons of gold every day, but it is not the only active market; there are also markets in Tokyo, Singapore, Hong Kong, and Zurich. This allows for trading the precious metal 24 hours a day.

The quotation of gold also depends on the futures market contracts that influence its price.

The price is indeed influenced by demand (industrial) as well as financial and speculative factors.

Gold is weighed (measured) in grams or ounces. The ounce that measures the weight of gold is called troy ounce and corresponds to 31.10 grams; we discussed this extensively in this article: troy ounce.

Historical Gold Quotation

Certainly of great interest for those like you who want to inform themselves about purchasing gold for investment is the historical trend of the price of gold.

The table above shows the trend of the price of gold from 1998 to the present day. Other tables with a longer history highlight how gold is a long-term investment.

Those who invested in gold in 1981 would have realized over 40% profit after 30 years.

Those who invested in 1991 would have gained over 330% profit after 20 years, unlike those who invested in 2011 and are currently at a loss.

In Italy, in the past, the possession of gold was governed by strict regulations. It was indeed possible to hold gold only in the form of processed gold, small semi-finished bars that could not weigh more than 100 grams, and gold coins.

With law no. 7/2000 of January 2000, the regulations changed and private individuals in Italy are now free to hold “investment gold” in weights accepted by the market and, in any case, greater than 1 gram. You can read the full regulation here.

Characteristics of Gold

Gold (symbol Au from the Latin Aurum) is a very rare metal and increasingly difficult to find. It takes up to 10 years to bring a new gold mine into production, which gives an idea of the difficulty of new supplies.

18 times rarer than silver and ranking as the third rarest existing metal, after platinum and rhodium, gold has been used as a store of wealth for over three thousand years.

Gold is durable (it does not oxidize, rust, or decompose), malleable, and nearly indestructible, making it perfect for jewelry uses and, due to its conductivity, also for industrial uses and electronic components.

It is extracted with increasing difficulty, especially in South Africa, the United States, China, and Australia.

In nature, gold is found in the form of nuggets, flakes, or grains.

Purity of Gold

The degree of purity of gold is measured in carats. One carat (ct or kt or K) equals 1 part of gold out of 24 total parts of metal.

As a result, the highest degree of purity of gold is indicated as 24K (24 carats). This means that all 24 parts of the metal alloy are composed of gold. In the case of 14k gold, the parts of gold would be 14.

24 carats correspond to 999 grams of gold per 1 kg of alloy.

There are no higher carats because gold is always alloyed with a minimal percentage of other metals to prevent it from being too soft in its “pure” state.

In addition, the alloy is important for the appearance of gold. Platinum is used to give gold a white appearance.

Where to Buy Physical Gold

To buy physical gold, one must turn to businesses and structures that are authorized to trade in investment gold.

The two main types of businesses are banks and professional operators.

Buying Gold at the Bank

Thanks to gold certificates, it is also possible for private investors to acquire gold and store it securely.

Banks hold the world's gold reserves, and in order of deposited gold quantity, they are as follows:

• The Federal Reserve of the United States of America

• The Bundesbank of Germany

• The International Monetary Fund
• The Bank of Italy

Italy is the fourth largest gold holder in the world and indeed we hold over 2400 tons of gold in the form of bars (over 95 thousand) and coins, with a value updated to 2015 of about 77 billion euros.

Buying Gold from Operators

Professional gold operators are essentially companies that have obtained registration in the register of the Bank of Italy (with a specific registration number) that authorizes them to operate.

These operators sell gold bars or gold coins with specific characteristics of investment gold.

One of the most used and reliable operators that we use and recommend to you is this one.

There are various ways to purchase gold, just think of the classic gold coins that we have discussed extensively on our site.

For example, the gold sovereigns are always considered an excellent form of investment because, in addition to the value of the metal, they also retain numismatic value. This is why some rare numismatic coins can often be valued above professional market quotations.

Below, we list the most common tools for purchasing gold in its various forms.

Tools for Buying Gold

Let’s delve into the details and analyze together what tools are currently available that allow us, safely, to buy and purchase gold.

Gold Bars

Perhaps because we always see it in movies or because it is the most traditional form of gold storage, the gold bar is currently the method by which the world's gold reserves are stored, kept, and traded.

Gold bars can come in various sizes. The most common sizes are the 400-ounce “gold bar” (which corresponds to about 12.5 kg) and the 1 kg bar. The weight of gold is measured in troy ounces, which we have discussed extensively in this article: troy ounce.

There are also smaller gold bars, used for exchanges or by small investors, with formats of 5 g, 10 g, etc.

Curiosity: An important thing to know is that smaller bars, like those weighing 1 gram, have the highest relative price. They are therefore not the optimal means for investment because you would pay almost double the value of the weight in gold.

Certainly, for small investors or individuals, buying, transporting, and storing gold bars is very inconvenient. Obviously, it is quite impractical and not without risks for an individual citizen to store gold bars, which is why more organized banks provide vaults specifically designed to store gold bars.

Gold Coins

Many nations around the world mint special coins made of pure gold. We have also discussed this here: gold coins.

These coins have a value that corresponds to the weight of gold they contain. However, some coins are special. Some are commemorative, while others are historical.

Therefore, in addition to the value of the weight in gold, they are assigned an additional numismatic value that depends on factors such as rarity, mintage, and condition. The most famous example of this type of coin is the gold sovereigns.

Gold Certificates

This is a form of investment that allows the investor to avoid the “physical” delivery of gold but to purchase the metal through a certificate of ownership. In practice, the buyer will hold a title, the gold certificate. This title certifies that the individual owns a specific quantity of gold that is stored by the bank.

Gold Deposits

Whether possessing gold coins or bars, one can open what are called “gold deposits” at banking institutions. These are reserved spaces in the vaults of the institutions where you can store your precious metals. This service is obviously subject to deposit fees as well as insurance costs that should always be considered.

The next two purchasing tools are somewhat different from the previous ones because with them you do not physically purchase gold. They represent a form of “indirect” purchase or investment.

Mutual Funds

Another indirect way to invest in gold is to buy shares of mining companies that operate in the gold sector.

In this case, you do not buy gold but rather shares of the companies, through mutual funds, where other people also invest. Such forms of investment are subject to market laws and fluctuations and volatility thereof.

This means that if the price of gold rises, usually the shares of mining companies rise as well, but the price can be heavily influenced by other factors and the performance of financial markets. In practice, it can decrease for reasons independent of the gold quotation.

ETCs

ETCs are Exchange Traded Commodities, financial instruments that, in exchange for an investment from the issuer of the instrument in commodities, such as gold, are issued and traded on the stock exchange like shares. The value of the ETC derives from the performance of the underlying commodity it refers to, which can also be another metal like silver, platinum, or other commodities like sugar, oil, etc.

As a tool, ETCs have no expiration dates and therefore replicate the return of the underlying resource, which is why they are also called “clones”.

A simple question you may have asked yourself by now is: “Why invest in gold?”

Among the many valid reasons that exist, we have listed the most common ones.

The first reason is historical. Historically, gold is an asset that has managed to preserve its value through all historical eras of mankind. Unlike paper currencies or coins made from other metals, gold has managed to maintain its value from one generation to another over the centuries.

The second reason, truly important, is portfolio diversification. Usually, the value of gold increases when the stock market performs poorly and decreases when the stock market performs well. This positions gold as a suitable asset for diversifying an investment portfolio, capable of reducing volatility and risk.

Tendentially, the price of gold tends to rise when the cost of living increases, and thus it has always been a popular refuge against inflation.

The value of gold rises during periods of crisis or geopolitical uncertainty compared to other types of investment. Recently, the availability of gold sold by banks has been decreasing since 2008, as has the production of new gold from mines. The reduction in supply consequently increases gold prices.

The demand for gold is increasing significantly, especially for emerging economies like India and China, as well as due to the growing number of investors.

Tips for Investing in Gold

Now that you know the major tools for purchasing or investing in gold, you should also be aware of the safest practices for investing in this precious metal.

First of all, it is better to have an investment that is as risk-free as possible. The risk associated with the current price of the metal cannot be eliminated, but other risks, such as those caused by ETC investments or mutual funds, can be.

It is therefore better to own the metal itself rather than derivatives or shares.

The best way is to invest in the form of bars of the largest possible weight, which are treated by operators recognized by the London Bullion Market Association (LBMA).

To store gold bars, special security measures are required; otherwise, you add risks that we do not want to take.

Safe deposit boxes are the best, most convenient, and secure solution, ensuring your gold investment at all times.

Buy Coins or Bars?

This is a question that new investors often ask.

To evaluate the answer, which is not always the same, one must first be aware of the difference between gold coins and gold bars. So before purchasing either, read carefully what we write below.

Gold bars are made of 24k gold (24 carats, therefore pure gold). They are available in various formats, from the smallest (1 g) to the largest (5 kg). They are not subject to taxation or VAT.

Coins, on the other hand, exist in a myriad of sizes and types, with the most well-known and widespread being the gold sovereigns.

Buy Gold Under the Best Conditions

Now that you have assessed that investing in gold is safe, and you have decided to buy gold and invest in gold, the first thing you need to keep a close eye on is the gold price (you can find it at the top of this page).

So keep track of the gold price at the moment you want to purchase it. Also, remember that the price of the gold you buy depends on how many carats its purity is rated.

By purchasing with the support of specialized operators, you reduce the risk of buying at the wrong times and are able to buy at the right moment, with the market in the best conditions.

Buy Gold Safely

Every investment should be made primarily by informing yourself as much as possible. Being aware of the risks is a necessary practice, as well as relying on safe, efficient operators with a proven track record.

Since information is the first step towards a safe and profitable investment, we hope that the information on this page helps you evaluate your potential investment in gold.

Certainly, to have a broader spectrum of information and additional details, we suggest you consult this site.

You will find a myriad of historical information illustrating why gold has been used for centuries. You can read information about gold bars as well as coins, understand the differences between allocated and unallocated gold, and the advantages of being able to buy or sell gold quickly.

In short, these are essential (and free) resources and guides for anyone looking to inform themselves about this investment practice. You can find them at this page.

Our Suggestion

The most well-known, safe, and reliable service that meets all the previously described requirements and thus guarantees maximum protection of your investment is bullionvault, which also provides you with a cost calculator that is very useful for calculating the overall expenses of your gold investment.

In particular, you can buy gold at the best market prices and sell it at any time easily and at the best price. You will own the metal. There are no shipping costs, no commission costs for maintaining complex investment instruments, and all the gold is stored in professional safe deposit boxes.

You can even choose from four different locations for the safe deposit boxes, including New York, London, Toronto, and Singapore.

Buy Gold Online

As we mentioned, there are various ways to purchase gold. Certainly, the most efficient way to do so is to buy gold online.

Indeed, the convenience of buying gold online is very simple: first of all, there is no need to withdraw the metal, as it can be stored in safe deposit boxes, safe and secure. The maintenance costs are very low and insurance is included.

Moreover, there is no VAT on the price of gold and no sales tax. The commissions are low, and the purchase price is very close to that of the professional market. All this results in significant savings, not just for the purchase but especially for when you later sell your gold. You can therefore buy or sell 24 hours a day without time limits.

There are dedicated platforms for purchasing gold, and the best of all is this one, which manages over 2 billion dollars in gold on behalf of more than 65,000 clients worldwide.

The advantage is significant because it allows the private investor to access the professional gold investor market and thus buy gold wholesale, in the form that costs less, and then sell it for much more.

What to Consider When Buying Gold

If you are buying small quantities, especially in the form of coins or gold bars, you need to consider various factors:

• The price of gold at the time of purchase
• Shipping costs
• Insurance costs

To do all the calculations and checks, you can use a free calculator that you can find here which allows you to compare the costs of any retail intermediary with the costs of a potential online gold purchase through this platform.

If you register for free here, you will receive 4 grams of silver for free. The silver will be stored in one of the safe deposit boxes and made available to you to try and get familiar with the platform and its features. If you want to buy gold, then register now and try today with the metal they give you for free.