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Today’s post comes from fellow S&S reader, Kim. If the current economic crisis has you reconsidering your investment, check out her tips for buying gold bars.

Buying Gold Bullion? Read these Answers to Frequently Asked Questions

In these times of economic uncertainty, many people are looking for alternative ways to invest their hard-earned money and are reverting to tried and tested investment vehicles such as gold. With mistrust of the traditional banking systems and a nominal interest rate, the interest in buying gold, particularly gold bars, has grown exponentially. But it’s important to deal with a trusted gold dealer with a raft of happy clients.

Although it can be hard for the first-timer to select a reputable company, information can be found online to help make an informed decision.

For example, Australia-based specialist City Gold Bullion has been in operation for many years and has an enviable track record both in client retention and customer service. Their clients are kept constantly informed regarding the status of their investment and their website republishes all the latest market news and trends. You can even have a look here and check the gold bullion price. But, regardless of where you choose to buy your gold bars, you should always be prepared and consider the following guidelines.

Things to consider before buying gold bars

The list below is by no means exhaustive, but it contains some of the things you need to consider before taking the plunge and investing in gold.

Why gold bars?

This is an easy consideration as it is a well-known fact that gold holds its value despite economic fluctuations elsewhere in the financial markets.

When is the best time to buy gold bars?

Industry experts recommend buying gold when the economic market is quiet. In times of recession and uncertainty, many people turn to precious metals to ride out economic crises. An example of this could be the outbreak of a worldwide pandemic or crisis that unsettles the market. In times of uncertainty, the price of gold rises and could provide a healthy return.

What to look for when buying gold bars?

Gold bars are available in several different weight ranges and buyers may not want to buy a heavy bar so it makes sound economic sense to buy smaller bars instead. You can still buy the same weight but can sell in smaller amounts when the time is right. Buying from a reputable gold merchant is essential as is checking it has the appropriate stamping to reinforce its pedigree.

 Why is a buyback policy important?

It is wise to ensure the company you buy from has a buyback policy in place. Although there are other gold dealers who will buy back from you, it’s useful to have a merchant who will buy back instantly if you need a cash injection quickly or the price rises.

In conclusion, gold bars are a safe investment but it’s important to be aware of the basics before you part with your hard-earned money. Look for companies that have a good reputation, a national presence and a reputation for providing high levels of customer service. Your investment portfolio will ultimately thank you for it!