Best Type of Gold for New Buyers

For new buyers of gold bullion, deciding exactly what items to purchase can be a challenge. There is no arguing that there are virtually limitless options available. Everything from bars to coins will serve as optimal choices. There is seldom a “bad” order when it comes to bullion and investing, but the initial goal of any buyer should be to obtain the most pure gold for their money. In other words, straying away from high premiums on more collectible items is a no brainer. The less sought after that an item is, the less likely that you will need to pay that much over spot price.

Gold Coins

Coins are a great entry level purchase, but only if you are purchasing the most basic editions and versions. As a general rule of thumb, it is best to stay away from graded, uncirculated, and otherwise exceptionally rare pieces so as to ensure that you are not outputting more money than is really necessary. One of the reasons that new buyers should stay away from these coins is that only a more advanced collector or expert will have a true idea of what they are actually worth. Gold dealers make the most from their collectible items, so it is safe to say that you will need to know what you are doing before you purchase one of these items.

Now, as far as coins go that are good choices for new buyers, the top choices include staples like the American Gold Eagle. These coins are available in many different years and can generally be found in sizes ranging from 1/10th oz. and upwards. This means that you will not be spending too much money since the volume of gold itself is not all that large. The premium attached to these coins over spot price is generally in the $20-$50 range per item. This is a fair figure and will almost always be recouped should you ever decide to sell your coins some time in the future.

Gold Bars and Rounds

Bars and rounds are the most generic forms of gold. They do not have any special value to collectors (aside from certain rounds) and are created almost exclusively for their inherent value in terms of actual gold. These are a solid buy because they will deliver the most bang for your buck. Where a coin will carry a premium, these types of gold will not. If you buy a 1 oz. bar, for example, you will likely spend around spot price plus a few dollars. There is going to be a mark up on virtually any form of bullion imaginable, but bars and rounds keep it to a minimum.

If you are unfamiliar with them, bars and rounds are just pieces of gold that are produced by private mints. They are created through melted down gold and then sold by mints. They do not have extra value to collectors because they are not limited and are not produced by governments. With these items, condition is not that important. If you want to buy gold that is in its purest form, bars and rounds are the way to go. Like coins, they can be had in small amounts, as low as a gram or less, up to sizes that are a few ounces or even larger. In the end, it is hard to go wrong when you purchase any bars or rounds, which makes the process that much simpler.