People interested in buying gold who do not have the time to visit brick and mortar gold stores prefer shopping online. It is convenient and can be done at home. However, buyers may fall prey to scams when they do not follow the correct guidelines when buying gold on the Internet. Buyers should arm themselves with sufficient knowledge before they buy gold online to prevent being scammed.
How to Buy Gold Online
Look for a trusted dealer
It is important to buy gold from a licensed dealer. Buyers should check the dealer’s policies, terms and conditions. Comparing prices will also help people find the dealer offering the best price. Online shops should have proper encryption to protect buyer’s privacy. If a website lacks this feature, avoid providing credit card information. Never buy gold from dealers whose contact information is insufficient. Information such as the dealer’s physical address, telephone number and email address must be provided. The contact information found on the site must also be verified.
Weigh gold options
People who buy gold have several options. They can buy gold rounds, gold coins and gold bars. They can even trade gold for cash. People who wish to invest in gold bars can choose 1-ounce, 10-ounce and 100-ounce bars. People who are purchasing gold online should know what form of gold to buy. For example, gold coins often carry markups that can be as high as 50 percent. Gold rounds and bars have markups that range from four to twelve percent. Gold rounds and bars are ideal for those who are buying gold solely for the metal’s value.
Determine how much to spend on buying gold online
Buyers who have already found where to buy gold online should determine how much they are willing to spend for the purchase. Online gold dealers accept bank transfers, credit cards, checks and money orders. Dealers have different policies regarding how the payment should be received. They may request a bank transfer or cashier’s check to prevent fraudulent transactions when selling large amounts of gold.
Different Types of Gold to Purchase Online
It is important to know the details about gold items purchased on the Internet. There are different types of gold. Each of them has different values and prices. Knowing how much to pay when purchasing gold online prevents buyers from being scammed.
Gold bullion and bars
This type of gold is sold with 99.9 percent purity. Ingots refer to larger gold bars that are produced using molten metal. Smaller bars are produced using rolled gold sheets. These types of gold are usually held as reserves.
Gold coins are usually sold to collectors. There are different factors that determine the price of a gold coin. These include the age, condition and rarity. The gold used in coins can be mixed with other metals, and these coins are graded based on their general characteristics.
Gold jewelry is made from rolled gold plate or rolled gold. It is composed of several layers of gold bonded with pressure and heat. The gold can be mixed with base metals like brass. Many other kinds of metal are mixed with gold jewelry.
Ways to Avoid Gold Scams
People who buy or trade gold online should be wary of scammers. Dealers should show documents proving that their business is legitimate. Personal information should not be provided online unless the gold dealer’s website can assure customers that it will be treated with confidentiality. It is also important to check the gold’s value. That way, customers can determine if the dealer is selling gold at high rates.
Buyers also have the option to trade gold for cash. Some auction sites may cater to this. Dealers will only be able to find out the gold item’s value when it is shipped to them. There is a good possibility that a gold item will not be returned if it is traded to a scammer. Buyers who trade gold need to choose a reputable cash for gold dealer to prevent scams. Reputable dealers will always have a return policy. Repayment is usually within 72 hours, and dealers also provide a timeline or inspection period.
Reviews and feedback from customers are also helpful in determining the dealer’s reputation. Ripoff Report contains complaints, scams and reviews of companies that customers should avoid. People can check this out to obtain additional information.
Scammers are also fond of putting pressure on buyers. Customers should not submit to sales pressure. Instead, they need to weigh several options. First time buyers should start buying gold in small quantities. Starting small reduces risks that cannot usually be avoided especially when purchasing gold online. Buyers need to avoid overpaying. Buying online should provide a fair deal, and the price should not be more than eight percent higher than the market average at the time. There should be no other additional fees. If there are, buyers may be dealing with a scammer.