If you’re considering investing in gold, you’re not alone. Gold has long been considered a safe-haven asset during times of economic uncertainty. Despite inflation subsiding over the past year, the precious metal reached its all-time high in December 2023. So, if you’re ready to invest, there are several ways to do so.
One option is to invest in equities, such as the stocks of mining companies or exchange-traded funds backed by gold or that hold shares of gold-mining companies. Alternatively, if you prefer tangible assets, you can purchase physical gold and other precious metals like silver, platinum, and palladium in various forms. Online retailers or gold dealers typically offer a variety of products and can arrange for secure storage or shipping of your precious metals. However, it’s crucial to find a reputable dealer with years of experience in the industry and a track record of positive user experiences. In this article, we’ll take a closer look at the best online dealers and what sets them apart from the competition.
Our Top Picks for Best Online Gold Dealers of 2024
Looking for the best online gold dealers? Here are our top picks for 2024:
- APMEX: Offers the best product selection for gold investors.
- JM Bullion: Provides the best transparency in pricing and inventory.
- Goldco: Offers the best investor education resources for new and experienced investors.
- American Hartford Gold: Known for its exceptional reputation in the industry.
- Orion Metal Exchange: Offers the lowest-price guarantee for gold and silver products.
Best Online Gold Dealer Reviews
Other Companies We Considered
If you are looking for more options to consider when choosing an online gold dealer, here are some other companies that didn’t make our top list:
- SD Bullion: SD Bullion is known for offering low prices and has an A+ rating from the BBB.
- BGASC (Buy Gold and Silver Coins): BGASC offers a wide selection of foreign coins and bars, including South African Krugerrands, Australian Kangaroo and Austrian Silver Vienna Philharmonic coins.
- Money Metals Exchange: This online dealer is a great choice if you want to buy gold in small increments. You can also sign up for automatic monthly purchases.
While these companies didn’t make our top list, they are still reliable options to consider when looking for an online gold dealer.
Online Gold Dealers Guide
Main things to consider before purchasing gold online
When investing in gold, it is crucial to keep in mind that it is not a guaranteed investment. The value of gold, like any other commodity, can fluctuate frequently. Therefore, it is advisable to consider gold as a long-term investment. Financial advisors usually suggest investing only money that you can afford to lose and allocating no more than 5% to 10% of your investment portfolio to precious metals.
It is also essential to consider the various gold products available for investment. Gold bars and coins differ in weights, sizes, and levels of purity. If you intend to invest in gold as part of your retirement strategy in a gold IRA, be aware that not all precious metal products are IRS-approved and eligible for a self-directed IRA.
Lastly, make sure to research reputable gold dealers thoroughly. Only purchase from trustworthy companies that have strong reputations, good user reviews, and are accredited by organizations like the BBB. Be mindful that precious metals dealers mark up the price of gold they sell from the spot price, meaning they sell it slightly higher than what it’s currently worth on the market. Review prices from multiple dealers before choosing which one to invest with.
How is gold valued?
Gold bars are valued based on their weight and purity. The heavier the bar, the more it will cost. Gold sold for investment purposes is the purest gold you can buy, usually 99.5% (or more) pure, which is the IRS’s purity baseline for the metal to be included in a gold IRA.
The value of gold can vary quite a bit, even intraday as the precious metal is traded 24 hours a day. The basic principle of supply and demand plays a significant role in determining the value of gold. The more demand there is for gold, the higher its value will be; conversely, if demand decreases, the value of gold will drop. Regarding supply, a limited supply of gold can increase its value. Additionally, geopolitical unrest and economic conditions, such as inflation and other financial crises, may affect the value of gold.
What is the average cost of gold?
The price of gold fluctuates constantly. In December 2023, gold reached a new all-time high of $2,150 per ounce, topping its previous high of $2,072 set in August 2020. At the beginning of 2020, the price per ounce was $1,553.
How to avoid scams when purchasing gold online
The best way to avoid being scammed when purchasing gold is to do so through a reputable dealer with transparent pricing and information. Avoid buying gold on unregulated platforms like Facebook and eBay. It’s also recommended that you review the dealers’ ratings on sites like the BBB and user review platforms.
Before investing, consider discussing your options with a financial advisor who can help determine if this investment fits your financial goals.
What are the benefits of buying physical gold?
Investors who purchase physical gold can benefit from the following:
- Store of value: Gold has been considered a high-value commodity for millennia. As a store of value, its value has historically been stable.
- Safe-haven assets: Gold is often considered a safe-haven asset. Historically, gold has performed well even in tough economic times. Many investors buy gold to hedge against inflation and currency devaluation.
- Diversification: Investing in gold can help you diversify your investment portfolio, which helps reduce risk.
- Liquid asset: Gold is a relatively liquid asset you can easily buy and sell.
- Tangible asset: For some investors, owning physical gold offers a sense of security that many other investments do not provide.
What are the drawbacks of buying physical gold?
Like any investment, buying physical gold has its drawbacks, including the following:
- Storage fees and insurance: Purchasing physical gold comes with the extra cost of safely storing and insuring it to protect it from theft.
- Price volatility: The price of gold can be volatile in the short term, so investors must have a long-term view.
- Not an income-generating asset: Because physical gold doesn’t pay dividends, interest, or provide income like stocks, bonds, or real estate, it might not align with your investment strategies. Read our guide on how to generate passive income for other ideas.
Online Gold Dealers FAQs
How much is a gold bar worth?
The value of a gold bar fluctuates with market conditions and the weight of the bar. Online gold dealers typically offer real-time gold price trackers, which allow you to stay updated on the current price of gold. The price of gold bars varies depending on the weight, with larger bars generally being more cost-effective.
How much gold can you buy online?
There are no legal restrictions on the maximum amount of gold you can own. However, some online gold dealers may have minimum investment amounts for certain financial products, such as gold IRAs. It’s important to research the minimum investment requirements of each dealer before making a purchase.
Is it better to invest in gold with a bank or with a dealer?
While some banks do sell gold, they typically have limited options and may not offer buyback programs. It’s often easier to purchase precious metals from reputable online dealers. These dealers often have a wider selection of products and may offer buyback programs for the gold they sell.
How can I find gold dealers near me?
If you’re looking for local gold dealers, you can start by searching online for “gold dealers near me.” However, most local dealers are coin dealers, and they may not have a wide selection of gold products. Alternatively, you can consider purchasing gold from reputable online dealers, who often do business nationwide and offer a wider selection of products.
How We Evaluated the Best Online Gold Dealers
To determine the best online gold dealers, we conducted thorough research and analysis. Our evaluation process considered several factors, including the reputation of each company, the variety of products and services offered, payment options, and the overall online experience. We carefully reviewed consumer ratings and reviews on third-party websites to ensure that the companies we selected had a positive reputation. We also looked for companies that offered a range of gold products and services to meet the needs of different investors. Additionally, we favored companies that provided multiple payment options for added convenience. Finally, we evaluated each company’s website to ensure that it was user-friendly and provided educational resources for investors.
Summary of Top Online Gold Dealers of 2024
When it comes to purchasing gold online, there are several reputable dealers to choose from. Here are the best online gold dealers of 2024:
- APMEX: Offers the best product selection for gold buyers.
- JM Bullion: Known for its transparency, making it a trustworthy option for gold investments.
- Goldco: Provides the best investor education, making it an excellent choice for those new to gold investing.
- American Hartford Gold: Has the best reputation in the industry, making it a reliable choice for gold purchases.
- Orion Metal Exchange: Offers the lowest-price guarantee, making it a cost-effective option for gold buyers.