How to Buy Gold Online

The following article does not seek to reach any aspiring “Midas.” The following article does not guarantee to the buyer of gold the privilege of handling and admiring that gold. Perhaps that is good news. Perhaps that offers the gold investor some insurance against the trials and tribulations experienced by Midas. At the same time, one group of professionals has reason to be concerned about current gold buying practices. Any writer who reads about how to buy gold online is sure to realize that he or she can not easily create an updated gold tale, a tale that focuses on a modern day Midas. No one has put forward guidelines for the sole route to personal wealth. There is more than one way to become rich. There is also more than one way to buy gold online.

Buy Gold Online

Buy Gold Online

Anyone with access to a desk or lap top computer can go online and buy one or more gold objects. Still, not everyone is familiar with the specifics surrounding the valuation of gold pieces. For that reason, someone who has chosen to buy any of the single gold items should watch closely for mention of golden coins. A buyer of gold can feel more confident about the value of gold coins, because the value of such coins usually follows closely the price of gold bullion.

Gold Bullion

Gold Bullion

A second way to buy gold online involves the purchase of ownership in gold. This represents a fairly new way to buy gold, a way that depends on the availability of the Internet. Investors who seek ownership in gold visit websites that offer what has been called “gold money.” Once it has been purchased, that gold money gets stored in an online account.

The physical gold remains in a vault, while the gold money, a sort of “virtual currency,” can be used as if it were actual cash. The owner of gold money can use that gold money to pay into other gold money accounts. By going online, the owner of gold money can make such payments instantly at any time of the day or night.

Is there any other reason why an investor might choose to buy gold money? Yes, there is. An investor can purchase goldgrams for a price that is only 0.98% of the spot gold price. The investor can then sell those goldgrams back to the gold money source, and the investor can ask the prevailing spot price at the time of that sale.

The investor can buy and sell pure gold, gold that remains in a storage vault. Moreover, that gold has been insured by Lloyd’s of London. This is a safe way to buy gold online, although it does not allow the buyer of the gold to stare at and admire his or her shiny possession.

Investors who do not shy away from buying stocks sometimes decide to buy a gold ETF or ETN. It is just like buying a stock. That similarity extends to the realm of taxation. Ownership of a gold ETF or ETN can have tax consequences. Investors are advised to speak with a tax advisor before buying any gold futures.

Still, the riskiest way to buy gold online involves the purchase of gold futures. Inexperienced investors, those who desire a sound and sure financial future, seldom take advantage of this fourth way to buy gold online.