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Gold has hit several new highs so far in 2024. The trend began in March when the price of gold hit a record of $2,169 an ounce. Then, at the end of May, the price of gold rose to another level. Maximum of $2,450 per ounce. And, although the price of gold has cooled recently, with today’s price Although it is close to $2,300 per ounce, the cost of gold per ounce is still several hundred dollars higher than at the beginning of the year.
However, the price of gold is not the only attraction. The precious metal also offers unique advantages to investors, such as acting as a hedge against inflation. And there are many gold investment options to choose from, including: Gold Individual Retirement Accounts (IRAs), gold stocks or gold coins. But one in particular that may be worth considering right now is 1 ounce gold barsas they are affordable and relatively accessible to most investors.
But despite the popularity of 1-ounce gold bars, experts say there are some costly mistakes to avoid when buying. Here’s what you need to know.
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Four costly mistakes to watch out for when buying 1-ounce gold bars, experts say
Make sure you watch out for these big mistakes if you’re adding 1 oz gold bars to your portfolio:
Do not buy gold bullion from a reliable source
One of the most costly mistakes you can make when buy a 1 ounce gold bar you are getting one from an unreliable source. If you do, you could lose some or all of your hard-earned money.
This is because gold bars can be counterfeited, and with today’s high gold prices, there is a huge incentive to do so. Therefore, if you do not ensure that your gold bars come from a reliable source, you are exposing yourself to the risk of suffering large monetary losses.
“Counterfeiting is a real problem in the precious metals industry,” says Brett Elliott, marketing director for the American Precious Metals Exchange APMEX. “Gold is often a target because of its high value. If you never buy gold from an unknown seller, especially if you ask for less than the spot value of the gold, then you will never be scammed.”
You can avoid potential scams by checking a company’s accreditation status, says Alex Ebkarian, chief operating officer and co-founder of precious metals dealer Allegiance Gold.
Ebkarian recommends looking for the dealer’s accreditation with consumer protection agencies such as the Better Business Bureau or the Business Consumer Alliance. You may also want to look into other types of information about the dealer.
“Each state offers a free search to verify registration dates and compliance with state requirements,” Ebkarian says.
Find out more about the great benefits that an investment in gold could offer you today.
Do not compare prices
Another mistake that can be costly is not shopping around for the best deal. Experts say you should shop around and if you’re not sure, buy gold bullion onlineMake sure the price includes shipping. Otherwise, shipping costs could significantly increase the cost of your purchase.
In general, experts say you shouldn’t pay much more than $100 above the spot price of gold for 1-ounce bars. And, depending on the manufacturer and other factors, you may be able to buy 1-ounce gold bars for $20 to $30 above the spot price.
According to Elliot, it’s best to avoid buying from pawn shops, which he says often have the worst deals on 1-ounce gold bars.
Buy seamless bars
Buying a gold bar without a hallmark could also be a mistake, says Ebkarian.
“While you can buy an unsealed bar and pay less than the normal market price, it is very important that the bar is sealed to provide confidence to the new buyer when it comes time to sell it,” says Ebkarian. “Most reputable private mints provide a gold bar in card stock with an assayer number on the back for authentication purposes.”
Not researching distributors to sell to
Before you invest, Nick Fulton, managing partner at USA Pawn of Mississippi, recommends finding a dealer who will pay more for 1-ounce gold bars. That way, you can get the most for your gold bars if you need to sell them in a pinch.
“Depending on the premium, the buyer will be at a disadvantage from the start,” Fulton says.
Fulton recommends finding a dealer that pays as close to the spot price of gold as possible.
The bottom line
Before buying a 1 ounce gold barIt’s essential to do your research and compare prices. Doing these two things can help you avoid scams and get a good deal. trusted distributorAnd doing so while avoiding the big mistakes described above may be the best strategy for your 1 oz gold bullion investment.
