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Gold has long been regarded as a safe-haven investment and in times of economic uncertainty or market volatility, investors tend to flock to this precious metal as a hedge against inflation and a store of value. Those benefits are a large part of why we’ve witnessed a surge in gold prices recently, with the precious metal hitting a number of new price milestones along the way.
For example, the price of gold has increased substantially over the last few weeks, climbing from under $2,100 per ounce in early March to today’s price of $2,379.76. That marks a 13% increase in a short period — and given today’s usual economic environment, the upward trend may continue, at least for the near future.
So, with gold prices reaching new heights and now teetering on the edge of $2,400 per ounce, you may be thinking about buying in. Doing so could come with big benefits for your investment portfolio, of course, but with gold prices as high as they are today, it’s important to find the best gold prices possible. After all, every penny saved on the purchase price can translate into a higher potential return on investment.
Ready to buy in? Compare your top gold investing options here.
How to find the best gold prices right now
Shop around
Don’t settle for the first price you encounter when buying gold bars or coins — or any other type of gold asset, for that matter. Research various dealers, both online and brick-and-mortar, and compare their offers. For example, established dealers like APMEX, JM Bullion, and SD Bullion may offer competitive prices, especially when buying larger quantities, so those dealers may be a good place to start your search.
And, you can use online price comparison tools or apps to quickly scan multiple dealers’ prices and make your search a little easier. This could help you more easily find better deals on the gold you plan to purchase.
Consider premiums
Be sure to also understand the difference between the spot price of gold, which is the market price, and the price of gold with the premium charged by dealers. While premiums are inevitable when buying gold, as dealers need to cover their costs and make a profit, they can vary significantly among different sellers.
For example, premiums on gold coins can be as high as 15% or more above the spot price, depending on the coin’s rarity and demand. So, as you embark on your search, be sure to look around for the most reasonable premiums to help minimize your overall investment cost.
Buy in bulk
Many dealers will offer discounts for larger gold purchases. If you have the capital available, consider buying gold in larger quantities, such as gold bars or large coin lots, to take advantage of these volume discounts and potentially secure better per-ounce pricing.
The discounts can range from a few dollars per ounce for smaller quantities to much more significant discounts for larger institutional purchases. So, the savings could be substantial depending on how much you plan to invest at one time.
Explore alternative options
In addition to traditional gold bullion, you may also want to consider other gold investments, such as gold exchange-traded funds (ETFs) or gold mining stocks, which may offer different pricing structures and potentially lower premiums or fees. And, the overall cost of buying into gold stocks or gold ETFs is typically much lower in general compared to buying physical gold, so it could make sense to take this route if you’re trying to keep the costs down.
Understand that timing is key
Gold prices can fluctuate daily, or even hourly, based on market conditions and news events. So, if you want to find the best gold price, be sure to monitor the market closely, using tools like live gold price charts or alerts, and aim to make your purchase when prices dip, even if slightly, to maximize your investment’s potential return.
Buy from reputable sources
While it may be tempting to focus on finding the lowest price, it’s also crucial to purchase gold from reputable dealers with a proven track record of authenticity and transparency. Authentic, high-quality gold from trusted sources like major mints or refineries can offer greater long-term value and peace of mind, as counterfeit gold is a real risk in the market. And, counterfeit gold is worth very little in general, so paying a little more to ensure you’re getting the real deal may have more of an upfront cost, but it will protect your investment in the long run.
Leverage online platforms
Online platforms and marketplaces can provide access to a broader range of sellers, which can potentially lead to better prices on gold due to the increased competition. However, it’s important to exercise caution and thoroughly research the seller’s reputation, customer reviews, and policies before making a purchase. If you take this route, make sure you also look for sellers with high ratings, clear return policies, and secure payment options to protect you during the purchase process.
The bottom line
By employing these strategies, you may be able to increase your chances of finding the best gold prices and maximizing your returns in the current high-priced gold market. However, it’s essential to approach gold investing with caution and to seek professional advice if necessary, as the precious metal market can be volatile and subject to various external influences.
