One of the most common questions that we see from investors is: How can I buy gold bars at the best price? This is a big concern for both new and experienced investors because the over spot premium you pay now can potentially affect the profits/losses of your investment if you opt to sell it later on. By doing some research and due diligence, you will more often than not be able to find the lowest price on a specific gold bar. In the following sections we will discuss the best ways to buy gold bars cheaply online.
Compare Gold Dealer Prices
If you use a gold price comparison tool or simply view the same product on two different dealer websites simultaneously, you can usually see which one has the lowest price. This is one of the most straightforward ways to buy gold bars cheaply online, however there are a few things one should take into consideration when comparing prices.
Bulk Pricing
Many online dealers reward customers who are making a large purchase of gold bullion with a per-item price discount. This means that if you are buying a large amount of gold which meets the product’s quantity discount tier, you will receive a lower price. That might sound somewhat intimidating, but on fractional bars for example, these quantity breaks can start at as little as 2-3 items which can be as small as 2-3 grams of gold.
Credit Card Processing Fees
One thing people sometimes forget is that gold bullion dealers usually are forced to charge a credit card processing fee because of their low product margins. This can amount to an extra 3%-5% in most cases. If you are looking for the lowest price for gold, this is usually not the best method to use for payment, but it does offer some benefits which one should keep in mind.
Credit card purchases are somewhat more secure than paying for gold with a bank wire or paper check. Once your funds have been surrendered with a credit card, you will always have the option to dispute the charges with your credit card company should something go wrong with your order. This is different from bank wire and paper check payments where once the money has left your account, it is often gone for good. When using a reputable dealer this is usually not a major concern but it is certainly something to keep in mind.
Usually, credit card orders ship faster than paper check orders because the transaction is completed simultaneously with the order being placed. This will vary from dealer to dealer of course and we recommend reading the shipping and ordering policies of the dealer in question before placing an order.
Shipping Charges
Shipping charges are another important factor to take into consideration when it comes to buying gold bars online at the best price. Of course all charges associated with your gold purchase should be taken into account when figuring out your per ounce cost. It is important to know and understand a dealer’s shipping rates before buying gold bars online. Most dealers offer shipping calculator tools to determine shipping rates, and others will list this information in their shipping policy.
Prices Associated with Gold Bar Brands and Sizes
Now that we have discussed what to keep in mind about the gold dealer you choose and the charges associated with the purchase, we will go into detail on the different sizes and brands of gold bars and how that affects the price an investor will pay for bullion.
There are dozens of private minting companies, refineries, and national mints from countries around the world who make gold bars. Most of these mints produce their bars in a variety of sizes, each with their own distinct design. A bar’s price tag is usually associated at least somewhat with the brand, design and rarity of the bar in question.
Some brands charge more for their bars than others which can be attributed to the minting, distribution and packaging costs and the demand for a particular brand at any given time. To find the lowest price for a particular brand you are looking to purchase, you can view and compare gold bullion prices offered by different online dealers to see who has the best price.
Gold Dealer Reputation
Aside from the price of a gold bar and the costs associated with buying them, it can often be a good idea to research each of the major dealers’ reputations. This can include information such as the standard shipping times, BBB complaints, and reviews from previous customers. You can do this type of research on our gold bullion dealer reviews page or through many other reputable sites online such as golddealerreviews.com or the BBB website.
