What Should I Consider When Buying Gold?

Published on 4th December, 2023

Gold has been historically recognized as a store of value and has been treasured by people across the globe as a symbol of prestige and prosperity. Beyond its cultural significance and its use as a monetary instrument, gold also has practical applications in various industries – ranging from electronics to dentistry, medical devices, aerospace, and more.

While there are several ways to invest in gold – from gold exchange traded funds to gold mining stocks and gold futures – many people prefer to buy physical gold due to the sense of security it provides and the fact that owning physical gold allows for privacy and control over the investment.

If you are looking to buy physical gold, there are several factors you need to take into account to make sure the gold you buy is worth investing your hard-earned money in.

What Are The Important Factors You Should Consider When Buying Gold 

The Dealer You Buy It From 

The most important factor you should consider when buying gold is the reputation of the dealer or broker. With a reputable dealer, you can be assured of the purity and authenticity of the gold you buy. They only deal in products that come with proper certification and documentation, ensuring you receive genuine, high-quality gold.

For over eight years, J. Rotbart & Co. has been providing white-glove services to clients who are looking to buy and sell precious metals. WIth over 40 years of combined experience in buying and selling precious metals, we have unmatched expertise and extensive experience in every aspect of precious metals investment and management – from buying and selling to logistics, storage, assaying, and financing.

Our in-depth industry knowledge, technical expertise, and keen insights into the dynamics of precious metal markets allows us to provide expert advice to our clients that can help them make smarter investment decisions which is critical in the age of high energy prices

The Brands of Gold Offered

Make sure the gold you buy is from the refineries certified by the London Bullion Market Association (LBMA). It is one of the best ways to verify the quality and authenticity of the gold you buy. Some of the most common LBMA brands are The Royal Mint, Royal Canadian Mint.Metalor, Heraeus, Argor-Heraeus and PAMP, Make sure the gold coins and bars you buy are 99.99% fine gold, which is the highest quality gold you can buy.

Apart from this, you should also check for the security features comprised in gold coins or for assay card/certificate of authenticity from the dealer, so that you can be 100% sure of the purity and authenticity of the gold you buy.

How Should I get Started?

Besides the brands and authenticity, it is also pertinent to distinguish between buying bars and coins as well as the various denominations amongst them. For an easier understanding, we have prepared a table for you to make a more informed decision when buying gold bars or coins!

At J. Rotbart & Co, we offer a wide selection of certified gold bars and coins that are sourced from the most reputable suppliers in the world. All our suppliers are members of the London Bullion Market Association (LBMA), so you can be assured of the quality of the gold you buy.

Where to Store Your Gold
Reputable dealers generally provide secure storage services to store your gold bars and coins with liability coverage. However, you would like to make sure the storage facility follows the LBMA security standards and practices. In terms of storage locations, you need to feel comfortable with the chosen jurisdiction such as Singapore, Hong Kong and Switzerland which are renowned for their world class security. Apart from this, you should also consider the following factors.
 
  • Are the storage facilities highly secured and meet the highest industry standards?
  • Can you can visit the storage facilities at any time and access your holdings?
  • Whether your gold holdings are audited annually by an LBMA auditor?
At J. Rotbart & Co, we offer logistic services and can deliver your gold to any location you want. We also offer highly secure, state-of-the-art storage facilities where you can store your gold safely with full liability coverage for your gold holdings. When storing your metals with us, you can keep track of your holdings and access them any time you want. If you already have gold and other precious metals that you bought from a different dealer, we can also assist in transferring them under our storage program.
The Different Costs to Consider When Buying Gold
  • Spot Price – It’s the current market price of gold per troy ounce. It serves as the baseline for determining the value of the metal. Keep an eye on the spot prices shown on certain websites as they may show a higher price than the market as well.
  • Premiums – It represents the additional cost above the spot price that you need to pay for physical gold. It covers the costs of manufacturing, distribution, and the dealer’s profit margin. It can vary depending on a number of factors including the amount of gold you buy, the location (premiums in North America might be different compared to premiums in Asia), and more.
  • Assay Fees – It represents the cost of verifying the authenticity and purity of the gold. It is usually included in the premium for certified products.
  • Sales Tax – Sales tax might be applicable when buying physical gold, depending on local regulations. *There is no sales tax when buying with J. Rotbart & Co.*
  • Storage Fees – It represents the cost of securely storing your gold holdings. Although the storage fees at most storage locations across the world are similar, you should make sure the fees include full liability coverage, complimentary 3rd party annual audit, and complimentary vault visits.
  • Shipping Fees – Shipping fees are dependent on where you buy the gold and where you want it delivered.

At J. Rotbart & Co, you can have access to our one-stop solutions in over 13 locations worldwide! With over 30 years of experience and an extensive reach amidst the team, we offer competitive prices to clients around the world along with options to sell back to us at any time!

So now that you have considered the various factors, how should you go about buying gold?   

Buying Gold with J. Rotbart & Co

Open – Open your account with us.

Order – Let us know what you would like to buy or your budget, we will place an order for you upon the receipt of your deposit and signed order form.

Delivery – Your precious metals products will be delivered to your chosen secure storage facilities or to your designated address.
Looking to Buy Gold? We Can Help You!
 

At J. Rotbart & Co, we go above and beyond what most dealers do in order to provide a secure and satisfactory investment experience for all our clients. Wide selection of high-quality precious metals products, our transparent & competitive pricing and successful track record set us apart from other dealers.

We strive to provide a positive buying and selling experience to all our clients. We are responsive to customer inquiries, address concerns promptly, and offer support throughout the buying and selling process. Contact us today by filling out our inquiry form or email us at [email protected] for all your gold and other precious metal needs.