How to Buy Gold - Starter Guide for 2023 ✅

and you'll find that most people who by physical gold don't go around talking about it and the reason is pretty obvious they don't want to invite anyone to try to steal it now that obscurity makes gold ownership seem a little bit mysterious maybe even a little bit bougie maybe even weird but I think it's practical and everything I'm about to tell you comes at the Gold ownership topic from that angle and we can cover the bougie angle in a follow-up let's just get out of the gates first [Music] [Applause] [Applause] so if you're just getting started with gold maybe you bought already maybe you're on the fence there is a lot to figure out a lot of that can be intimidating so I'm going to run through all of the things that I wish I would have known when I was just getting started the things that I figured out in the 16 years since I've started buying physical gold now I have made similar videos in the past but over time I found that best practice is to just keep it really simple not only because it's easier to get started but because it's also better at scale so I'm going to boil this one down a little bit further than have in the past now some of the things that I'm going to run through are important to know because there are very expensive mistakes that we want to avoid and then there are some of the things that you should know but you should just kind of file away because there are certain cases where knowing a little bit might be worse than knowing nothing at all I'll give you an example of that you need to know how to find the spot price of gold you should know how to check it but you shouldn't get caught up in it because there are quick moves in spot price that could leave you to bad decisions so buying precious metals it's not like trading stocks this is a long game and to the extent that you're able to get yourself to do this you almost want to buy it and forget it so the first thing that we should cover is the value of gold right now today an ounce of gold is worth 1865 dollars that is the spot price so by gold in any form it's going to come with the premium on top of that that covers the minting of the bar the round coin and there are a lot of other ways to buy gold as well but for this video we're going to stick with gold bars and coins primarily we're going to stick with modern gold bullion rather than the rare collectible stuff since we're just getting started in this this really is meant to be a gold 101 video now we're going to keep it simple for a few reasons I'll be explaining why throughout the video if you're watching this video you probably already have reasons for buying gold I'm just going to assume it's some version of wealth retention you want to save with gold because you see it as a diversification maybe it's a safer bet against economic issues I'm not here to convince you but most of us are probably thinking about retirement or maybe we want to hand it down to Future Generations those are typical reasons and I'm going to add one more it's just fun now buying gold is a lot more interesting at least to me than saving in my local currency but if that somehow makes this seem frivolous well anything you see on the desk throughout this video it's primarily savings that I've stacked up over the years mostly as an alternative to wasting it on other things that would have depreciated or probably just disappeared by now it's a pretty good trick okay so we need to get into the basics here the most popular form of physical gold is going to be the coin what I have here are American Gold Eagles in two sizes the one ounce and the quarter ounce and a one ounce gold buffalo all these coins are minted by the US Mint it's an agency of the U.S treasury but you would rarely if ever buy them directly from the mint you usually buy them from a dealer maybe a local coin shop other governments they mint their own gold coins but we're gonna focus on local options for a few reasons that I'm going to be getting into before we move on though modern gold bullion coins they're typically stamped with the gold purity and the weight in troy ounces now this Buffalo it's one troy ounce you can see here it's four nine spine pure gold this is a 24 karat gold coin the Eagles here they're 22 karat that doesn't mean a whole lot in terms of how much they're worth because even though these Eagles have an alloy of 91.67 gold three percent silver remaining 5.33 copper they are stamped only with the pure gold content so this eagle has one troy ounce of gold just like the Buffalo does it just has the silver and the copper in addition and that makes the coin more resistant to wear so they're the same in terms of gold value you'll also see a face value on a lot of coins at least the coins that I have here you won't see them on krugerrands you won't see them on libertads but most Sovereign coins have some kind of face value and we're going to ignore it because even though hypothetically you could spend them at a store you do not ever want to do that these coins have gold weight value of 18.65 today with an additional premium on top of that and that makes them worth about 40 times the amount that's printed on the coin these aren't worth fifty dollars they're worth more like two thousand dollars I mentioned the premiums a few times you can think of that as the production cost or the retail markup and that varies coin to coin bar to Barb these are all common coins and the premiums for one ounce versions will be about six percent maybe seven percent of gold spot price so you'll pay spot price plus six or seven percent now for the smaller coins you'll pay more quarter ounce coin that has a premium of more like 13 so just think the smaller the coin the higher the premium and if you're wondering why somebody would want to do that pay more for the smaller coins well gold is expensive sometimes it's a good idea to just kind of ease in I bought quarter ounce coins each month for eight years the premiums at the time they were a little bit lower than they are today but it kept me focused on goals you're just going to have to decide for yourself what your budget will allow now premiums they vary they depend on where you buy them you're going to pay more or less than what I gave you already 67 or 13 or more usually more but I'm going to give you some tools in a minute here to help you figure out whether or not what you're paying is reasonable and how to find the best deals so if you live in the United States I know some of you don't but if you do and you're shopping for gold coins you should probably start with these Eagles and buffaloes I'm just going to leave them out as visuals throughout but in other regions it's going to make a lot more sense to buy the coins minted by your country's mint if that's possible or the regional favorite other coins still recognizable they're still popular here in the United States you think of Canadian maple leafs krugerrands philharmonics britannia's kangaroos those are all very well known they can be easily purchased easily sold and you'll find that any of those options probably come at a lower premium than the eagle or the Buffalo here but you'll also get less for them in a sale there's always that buyer preference to consider as well it's just easier to sell local coins the reason it's easier is there's a bigger buyer population that's pretty straightforward and I found that having an easier sale is pretty important because typically if you're selling gold it's not a planned event as a new buyer the easiest the quickest place to sell a gold coin is going to be at your local coin shop same goes for gold bars I'll get to those in a minute but they will pay more for regional coins because that's what they sell the most of you shouldn't have any trouble selling any of the other options that I just mentioned so far but you'll get just a little bit less for them now if you want an example of how gold bullion from another Mint or in another form might be cheaper than U.S mint coins to look at the Royal mints Britannia this is actually a Great Britain Royal coat of arms but it's also from the Royal Mint I just don't buy britannia's right now but you can find a one ounce gold Britannia for about four percent premium when Eagles and buffaloes they might be six or seven percent like I just mentioned and then if you turn around you sell them to a local coin shop well maybe you'll get spot price for the Britannia so you're looking at a three percent loss you pay three percent over you get back spot three percent loss if you pay four percent over you get spot four percent loss the same shop they might give you one or two percent over spot for an eagle or a buffalo which means to buy to sell spread on the Britannia is actually a little bit better now Canadian maple leafs are another example maybe even a safer bet in the United States but if you're only buying a few coins it might make sense to do it that way now personally I've found it at scale the local dealer's willingness to buy what you're selling begins to change a bit timing comes into play a lot more now I would much rather have Eagles or buffaloes if I had to sell 20 or 40 in a hurry even if the potential price difference meant that I was spending one percent more to get there I've just found that US mint coins they're far easier to sell in bulk now if I triggered something there with a difference in buy to sell spread maybe it was that idea that there is an immediate five percent loss on your investment it's very true and this is the reason that you don't trade gold like you might trade stocks at least not physical gold there's an acquisition cost that comes with buying physical gold that you will lose if you turn around and sell it that same day but over time the price of gold has increased making that five percent loss far less important in the longer term it's just something that you should consider if you're worried about your purchase maintaining 100 of its value at all times now since I mentioned spot price a few times I should probably tell you how to find out where it's at at any given time if you were to search Google for the spot price of gold you'll find a few charts now I usually look at kitco's chart myself and as you can see today's spot price is one thousand eight hundred sixty five dollars now if you look further back than that you would see that the spot price does not move in a straight line it goes up it goes down and if you were to watch it on a daily basis it might even make you crazy if you're trying to lock in wealth though the best idea is probably just to check spot price leading up to your purchase and then only seldomly from there any goal that I buy today I buy with money that I shouldn't need in the near future it means that I can hold the gold and then let long-term performance do its thing there's always a chance that spot price will drop especially in the near future but over time it has always appreciated it's no guarantee of course but I'm personally confident that that'll continue now there are a lot of ways to buy physical gold the safest is just going to go to your local coin shop if you have one available in your area or buy online from a reputable gold and silver website and there are a dozen or so of those that I've used and would recommend but just to name a few I use JM Bullion app Max bullion exchanges bgasc those are the primary ones that I use right now now there are a lot more than that we're probably equally good I just simply haven't used them as frequently or as recently I'll list some links in the description for those now what you'll find is that prices payment methods and shipping times are going to vary between the dealers and the four that I named they show a pretty good range of those qualities all four have proven to be high quality to me also easy to get a hold of if something does go wrong but I'm going to list a site in the description that you can use if you'd like to compare prices in near real time as well at the moment I'm familiar with all the sites that it compares the prices on they're all pretty well known but who knows what happens in the future so just be careful two of those sites that I mentioned JM Bullion app Max they both have relatively easy buyback programs as well so you can easily agree to a price quote before sending your medals in maybe you don't have access to a local coin shop that buys them these are a good option I found that both will pay a little bit more than local coin shops but you do pay for shipping after that it's more or less a wash now the online dealers though they become a better option for semi-numismatic or collectible coins but that's outside of the 101 topic now coins versus bars it's a subtopic here that I'm just going to mention quickly the reason that I don't have gold bars on the desk is that in my city bars are just a little bit harder to sell my local coin shops for whatever reason they don't really like them now with coins it's a felony to counterfeit U.S mint coins so that's one thing the detail of the coins makes them a little bit harder to copy if you think about bars there are more variables bars come in lots of different dimensions different sizes and they're often sealed in assays and that makes them harder to verify now all of that can be overcome with the right knowledge and the right testing equipment but it brings in a little bit of Doubt from buyers so if you're just starting out trying to decide between coins and bars it's easier to go with coins now from a price perspective bars are more like that Britannia case that I mentioned earlier they cost a little bit less and that savings can add up but I personally still prefer the ability to sell more and more quickly I find that the slight Edition cost of the coins is still going to be worth it now this is a case-by-case thing it's definitely a regional thing I would recommend calling some local coin shops and asking how they feel about bars maybe ask them what they pay in a buyback if it's close to coins it might be a reason to buy those bars but I will say without a doubt that coins are considerably more popular than bars here in the United States okay so if you simply do not like the looks of the American Gold Eagle or the American buffalo Canadian maple leafs very popular in the United States so our crew Brands philharmonics britannia's kangaroos probably in that order the reason that I'm not showing those options is the same reason that I'm not showing bars I told you at the beginning I was going to try to keep this simple and I find that U.S mint products they are just the best decision for me based on where I live and how much I buy if I want more interesting coins I buy things like serious coins that I enjoy but I know that my local shops will not buy them from me for what they're actually Worth or what they should be worth so I'll have to take a value loss or sell them on platforms like eBay that adds time that adds risk and because of that I don't think it makes sense to start out there now one other thing here to think about is that you might not be the person selling them now I think that if I had these down to my kids I just don't want there to be any kind of hassle for them to figure out what they've just been given especially if I'm not around anymore sorry to be morbid now in the past when I've made similar videos I've taken this a little bit further but I feel strongly that if you don't know where to start the best option by far is to just keep it simple I've made more than 200 videos on the topic physical gold ownership here on this channel so there's plenty of information if you want to know more just subscribe hit up my Channel video page you'll see those videos I'll also add some links to a few of the most important topics like how or where to store it in the description but I'm going to follow this up with another video with some tips on diving a little bit deeper as well in the meantime though if you have any questions drop them into the comments I'll do my best to answer them there as well and if you're not new to Gold you're watching this video anyway help us out just be sure to consider what you wish you had done when you were starting out so things like any gold is gold that kind of strategy maybe buying rare numismatic gold that might work for you today but it's hard to start out that way so help help us out it's always good to get more perspective on the topic let's just try to keep it simple I think that covers that the introduction to Gold Topic at least so let us know what you think this is a rabbit hole that's extensive it's curious but the idea of buying physical gold I think it's a practical one I found it to be both rewarding and fun and I hope you do too let us know what you're up to in the comments while you're there be sure to hit the like button if you found any of this interesting be sure you're subscribed with notifications turned on if you'd like to see more on the topic and if you're still here thanks again for watching I always appreciate your time take care [Music]

Channel: 2 is 1

Views: 390,248

Keywords: the best gold coin to buy, how and where to buy gold coins, getting started buying gold, how to buy gold coins, which gold coins to buy, how to invest in gold, buying gold coins, buying physical gold, beginners guide to buying gold, where to buy gold coins, best place to buy gold coins, best gold coin to buy, introduction to gold coins, gold buyer guide, gold coins, how to buy gold, investing in gold, buying gold, american gold buffalo, gold for beginners

Id: 2EKhHdTRWus

Length: 16min 21sec (981 seconds)

Published: Sat Feb 18 2023