Today, there are many ways to get exposure to gold and other precious metals. There are exchange-traded precious metals funds, or ETFs, such as the GLD (for gold), and SLV (for silver) on the stock market, through which one can own shares that may (or may not?) be redeemable in real physical metal; one can also buy shares of mining companies; or one can simply buy the precious metals outright.
Not too long ago, if one wanted to acquire gold and/or other precious metals, one had to physically go to a precious metals dealer’s shop. But the last few years have seen the advent of several online precious metals dealers , and there are some very important differences between them. Investing in precious metals is a serious endeavour and should not be done without due diligence. This is why we put together this independent guide to help you choose between the many options available online.
For all sorts of reasons, from the loss of purchasing power of the paper currencies to the fact that gold has always, throughout History, preserved wealth, we recommend owning physical gold rather than « paper » gold, i.e. a claim on some gold. Owning gold is the best insurance against the falling currencies and inflation. Gold (and silver, up to a point, but silver also has many industrial uses) is real money, has been so for more than 5,000 years, and is the only money that has absolutely no counterparty risk because, unlike other paper monies, it cannot be created out of thin air, at the whim of central bankers.
And, since there are so many offerings to buy precious metals online, it is becoming the preferred way for most individual buyers to invest in precious metals.
We will compare five of the most popular online dealers and try to point out the similarities and the differences between them, so you can choose wisely.
The dealers reviewed are JM Bullion, APMEX, Bullion Vault, Gold Broker and SD Bullion. All of these companies are legitimate, secure and reliable, despite differences in services or products offered. Some have lower prices, some have a wider selection of available products, some offer shipping and some do not, and some provide storage offshore.
Gold dealers reviews
How to choose ?
Before choosing your online dealer, there are some important points to consider :
- What size of investment are you considering?
- Will you have outright ownership of your stock?
- Is storage properly insured?
- Will you have direct access to your stock, either to inspect it or retrieve it?
- In what country will it be stored?
- Are there any exit penalties?
- How high are the management fees?
- Do they have a wide assortment of products?
- Are they reliable?
We hope this guide will provide some answers so you are better positioned to invest in a well informed manner, whatever your investor profile.