How to Choose the Right Gold Company to Purchase Precious Metals – An Easy Guide

Amidst historic high gold prices, the gold market is bustling with activity as investors flock to this precious metal as a safe haven asset in the face of market uncertainties, persistent inflation, and other concerns. With the price of gold surpassing $3,000 per ounce, investors have rekindled their interest in this valuable commodity.

Understanding how to buy gold and delve into gold investment as a commodity is not an easy task. Before choosing a gold company, one must first consider the type of gold investment – whether it be in gold bars, gold coins, or gold stocks.

Alex Ebkarian, Chief Operating Officer of Allegiance Gold, a precious metals trading firm in Los Angeles, highlighted the benefits of physical gold ownership, comparing it to how central banks and large governments opt for complete ownership when investing in gold. He emphasized that physical gold is not aimed to compete with stocks like Apple or Nvidia but rather serves the purpose of maintaining purchasing power over time.

For those unsure about owning physical gold, alternatives like gold stocks and Gold ETFs can be explored. Jordan Roy-Byrne, author of “Gold & Silver: The Greatest Bull Market of All Time Has Begun,” explained that having gold in your investment portfolio involves purchasing a fund or ETF that can be traded on exchanges, as opposed to purely purchasing physical gold for financial insurance.

A reputable and well-established gold company with a wealth of experience is more likely to be reliable. Ebkarian stressed the importance of seeking a company with a solid history, advising investors to verify this through national registration websites rather than solely relying on platforms like Trustpilot.

When selecting a gold company, it is crucial to review feedback from current and past customers, search for the company’s name and look for potential lawsuits and instances of fraud.

The key in choosing a gold company is to opt for one with transparent pricing. Understanding the product you are purchasing, along with transaction costs and potential fees such as setup and maintenance/storage fees, is essential. Brett Elliott, Marketing Director of APMEX, the American Precious Metals Exchange, highlighted the advantages of online gold purchases, including transparent pricing, a wider selection of products, and the absence of pressure. This allows buyers to comfortably research the legitimacy of online stores and compare costs to avoid overpaying.

For those who prefer a hands-on experience, local coin shops in major metropolitan areas offer a face-to-face option that is generally considered safer than pawnshops, according to Elliott.

Ebkarian pointed out that there are various types of gold dealers, with online dealers offering flexible transaction methods where customers can visit their website, enter credit card or ACH information, and make a purchase without much interference. In contrast, some boutique stores help customers with product selection, storage options, and establishing exit strategies for future sell-offs.

Customers have the freedom to choose their preferred method of purchase, but it is crucial to select a gold company that prioritizes customer interests. Experts caution that high-pressure tactics or spreading panic are red flags to watch out for when dealing with a gold company.

Investing in gold can act as a hedge against currency inflation. When selecting a gold company for purchase, experts recommend inquiring about custody options or services and suggest comparing multiple gold companies for pricing to avoid potential scams involving counterfeit gold.

(Note: This article provides general information for reference purposes only and does not intend to recommend any specific actions. The Epoch Times does not provide investment, tax, legal, financial planning, real estate planning, or other individual financial advice. For specific investment matters, consult with your financial advisor. The Epoch Times does not assume any investment responsibility.)