Buying Gold and Silver Online: Ultimate Guide

Buying Gold And Silver Online: Ultimate Guide

Since the earliest known times, gold and silver have been a symbol of wealth and power.

Years later, when barter and trade became the norm, gold and silver were used as forms of money.

Over time, wealthy individuals, empires, investors, and industries have used precious metals as a store of value to hedge against economic uncertainty, and the trend still continues.

Today, investing in precious metals is considered to be one of the safest investments. Investors worldwide, both young and old, invest in precious metals to protect their wealth and enjoy returns that no other paper investment, such as stocks and funds offer.

However, with advancements in technology, buying gold and silver is easier than ever.

Gone are the days when you have to go to your local store to inquire about the rates and physically invest in precious metals. Now you can buy gold and silver right from the convenience of your home.

Moreover, investing in bullion is not the only investment option for investing in precious metals. You can go for stocks, certificates, funds, and futures. But this abundance of purchase options often raises some important questions that we will address in this post.

Here, you will find out how to buy gold and silver online and some possible ways to invest in precious metals. And lastly, you will find out whether long term gold IRAs are the right investment choice or not.

With our reasonably partial opinions, we intend to impart knowledge so that you can make an informed choice that offers reasonable returns while increasing your wealth.

How Can You Buy Gold and Silver Online?

How Can You Buy Gold and Silver Online?

Purchasing gold and silver online is not a complicated process. It is quite similar to how you purchase at a brick and mortar store but is a lot more convenient and straightforward. Using the online option, you can make your purchase 24/7.

Moreover, online metal buying allows you to complete your research, so you choose the online retailer who offers the best value for your money. Let’s look at the 3-step process through which you can easily buy gold and silver online.

Browse Any Reputable Gold and Silver Retailer

Several reputable gold and silver retailers offer online purchase facility. Make sure you check for reliability and reputation before you finalize your purchase decision.

Most online retailers also provide customer service where knowledgeable staff addresses all the potential client concerns and facilitates the decision-making process. 

Select the Weight and Quantity

Once you know where to buy gold and silver from, you need to decide how much gold and silver you need.

Select the weight and quantity of the gold coins or bar. Some online retailers offer discounts to customers who order larger quantities.

Make the Payment

After finalizing the weight and quantity, you will get an idea of how much you have to pay to the retailer. Typically you will get a choice between online transfer and payment through credit card.

Several retailers offer discounts for making payments through credit cards while others prefer wire transfers. In either case, choose the payment method that is most convenient and cost-effective for you.

Methods of Purchasing Gold and Silver

Methods of Purchasing Gold and Silver

While most people believe that physical investment in gold and silver is the safest way to invest in precious metals, there are several other methods of purchasing precious metals. Let’s look at some of how you can invest in precious metals such as gold and silver.


Bullion refers to metal coins and bars that have a stamp for purity and weight. Physically, you can purchase gold and silver in the form of bullion which are available in several weight options ranging from 1 oz. to several ounces.

Typically when you invest in bullion, you have to pay for the cost of the metal along with costs associated with refining and shipping. You may also have to pay the dealer’s premium.

Very often, bullion is considered to be the safest investment; it comes with the downside of the additional cost of storage and security and may be illiquid.


Another way to invest in precious metals is through stocks/shares. You can invest in the stock of precious metal mining companies. However, it is essential to remember that gold stocks do not always replicate bullion prices in the market.

It happens because the mining company’s share prices may rise and fall depending upon the company performance and not necessarily on how the gold prices are trending.

Therefore, when investing in stocks of precious metal mining companies, make sure you know how mining stocks are valued and how the company has performed in the past.

You will not be able to enjoy any returns and may end up losing your investment if your chosen metal extraction company isnot successful.

Mutual Funds

Investing in mutual funds with equity in gold and silver mining companies is another method of purchasing gold and silver.

Mutual funds allow you to create a portfolio of some of the best performing shares in the market. And if you invest in a mutual fund with a balanced portfolio, your investment is likely to be less volatile than investment in bullion or stocks.

Exchange-Traded Funds

A commodity exchange-traded fund (ETFs) holds an investment in bullion on your behalf. As a result, you enjoy the benefits of physically holding the bullion; however, you do not have access to physical gold or silver.

You will not get the gold or silver coin or bar delivered at your doorstep; however, ETFs are more liquid than physical metal. Moreover, ETFs are subject to brokerage commissions.

Futures and Options

If you have an aggressive investment style and want to hedge risk, futures and options may be an excellent choice. Using futures and options, you get greater liquidity and leverage when buying and selling larger quantities of precious metals.

However, this lucrative investment option comes with a significant drawback of high potential losses in case of a reduction in the metal price.


And lastly, you can purchase gold and silver through certificates.

Paper ownership is highly liquid and saves you from the hassle of transportation and storage. However, in times of real disasters, certificates may quickly become worthless.

What Method Tends to Generate Most Money?

What Method Tends to Generate Most Money?

With the know-how of several purchasing gold and silver methods, let’s find out which of the following methods tend to generate more money.

Buying Online

When you buy gold and silver online, you get an opportunity to view the prices offered by several retailers; a feature that is not always convenient in physical purchase from a brick and mortar store.

As a result, you can easily find out the retailer who is offering the best prices. Moreover, online retailers often offer discounts because they have a lower overhead cost than a physical store.

When they transfer that discount to the customer, they become a far more attractive option for investors.

So when you purchase gold and silver online, you save on several fronts, making online buying a great choice when looking for buying gold and silver cheaply.

Holding Physical Precious Metals

Holding Physical Precious Metals

Physically holding the asset offers the most security as your investment’s value is backed by the asset. When you purchase the precious metal, you pay for the cost of metal and the refining and transportation cost.

Moreover, you also pay a premium for the retailers. In case you are buying gold and silver from a physical store, it may be a costlier option compared to when you purchase online.

Apart from the extra premium, you also have to pay for the storage and security of your asset. Either you have to keep your asset in the bank vault or get insurance for your gold or silver bullion.

All these costs make the physical purchase the most expensive option. With that said, it still is one of the most preferred methods because it gives security. In terms of liquidity, selling bullion is slightly more difficult than stocks, ETFs, and certificates.

In terms of generating profits and returns on investment, physically holding the asset may be the least lucrative investment option.

If you are an aggressive investor who looks forward to higher profits, you can only gain from this type of investment if there is a steep increase in the metal price. Otherwise, it may not be the right investment choice for you.

However, if you are a more risk-averse investor who intends to keep the bullion as a store of value, then physically holding the metal may be a great choice despite being the least lucrative investment option.

Stocks Safety

When you invest in stocks, you may generate more money in terms of dividends and higher share prices; however, your returns do not depend upon bullion’s price. Instead, the performance of metal mining companies influences the returns and stock prices.

As a result, stocks can be one of the riskier options compared to the two options highlighted above. But more risk also resonates in the form of higher returns; however, these returns do not correlate with the price of bullion.

In all, if you are planning to buy gold and silver cheaply, then purchasing precious metals online remains the best choice as it gives you the most cost-saving. But if you are looking forward to regular returns, it is best to invest in metal mining companies’ stocks.

What Is the Difference Between Gold Funds and Gold Futures?

Gold funds and gold futures are two possible investment options that come with several differences. Let’s take a closer look at what are the differences between gold funds and gold futures.

Gold funds allow investors to invest in gold using Exchange Traded Funds. The ETFs are traded in the stock market, just like stocks.

The mutual fund’s value is determined through the Net Asset Value (NAV) at the end of the trading day. However, gold funds are not the same as gold EFTs. The two investment options differ based on pricing, transaction cost, and liquidity.

On the other hand, gold futures are contracts traded on the exchange at a predetermined price and set future date. Moreover, investors get the flexibility of not paying the entire amount when purchasing a gold future.

If you compare the two investment options, gold futures

  • Provides more protection against price risk,
  • Are more flexible,
  • Offer more liquidity, and
  • Are a more direct investment compared to gold funds.  

Are There Any Gold Hedge Funds and How Do They Work?

Hedge funds are an investment fund managed by qualified investors using a portfolio that works to achieve investor objectives.

A hedge fund is portfolio management for investors who do not want to manage their investment on their own. However, they have clearly defined investment objectives. In return, the investors have to pay a fee.

There are several gold hedge funds that can manage your gold portfolio so you can enjoy better returns that are aligned with your investment objective. Different hedge funds use different strategies based on the investor’s goals.

While some go for higher returns, other hedge funds use a more fundamental and risk-averse approach. And as important as the strategy is, the ultimate test is how the strategy is implemented in real-life situations and its consequences.

Returns may be an essential feature for investors; risk is an equally important consideration. How your gold hedge firm performs in terms of risk and returns will ultimately depend upon the investment strategy along with the performance of the precious metals market.

Is Long-Term Investing in Gold IRAs a Good Idea?

Gold IRAs are becoming an increasingly popular option for a diversified retirement portfolio. It allows you to add gold along with other paper assets to your retirement portfolio.

Since gold generally guards against inflation and is considered a safe haven for investors, it is a smart choice, but just like every investment decision, it comes with its pros and cons. Let’s take a look at what gold IRAs are, and whether or not it is an excellent long term investment.

Gold IRA

A gold IRA, also known as precious metals IRA, is a specialized individual retirement account (IRA) that allows investors to add gold and other precious metals to their portfolio instead of other conventional investments such as stocks, bonds and mutual funds.

Over the last few years, the world has witnessed a significant increase in gold prices.

Moreover, during the 2008 financial crisis, gold prices have remained stable and even continued to rise. This makes gold a perfect choice for investors looking for a store of value and potential growth in wealth.

Since ancient times, gold was used as a currency and unit of exchange. So during times of economic turmoil, when all other investments include stocks and mutual fund cash, gold still retains its advantage and thus remains valuable.

Furthermore, with a gold IRA, the investor gets the freedom to choose between several IRA approved precious metals. And lastly, when you invest in a gold IRA, you get tax benefits along with all the other advantages.

A gold IRA is a great investment option that guards you against inflation and economic uncertainty; however, it comes with several drawbacks.

Cons of Gold IRAs

Unlike paper investment, gold IRAs do not pay any dividends, interests, or yield. So typically, your golden eggs are likely to sit in a bank vault or safety deposits. However, while you may gain when the prices increase, gold IRAs are not an income-generating investment portfolio.

Additionally, investing in gold IRAs come with some extraordinary expenses that you do not incur when investing in a regular IRA. Some of the additional costs you will have to payincluding markups, account setup costs, custodian and storage fees, and cash-out costs.

Now that you are clear on the pros and cons associated with investing in a gold IRA, you can decide whether it is an excellent long term investment or not.

As a rule of thumb, it is not a good idea to put all your eggs in one basket so if you invest in a gold IRA, make sure you go with a balanced approach.

While gold will guard you against inflation, gold prices may drop unexpectedly, and you may end up losing a significant portion of your wealth.

herefore, it is best to only invest a certain portion of your wealth into a gold IRA while diversifying your risk through other investments such as stocks and mutual funds.

Final Words

Gold and silver are among the safest and most popular investment choices for people around the world. And just like every other investment, there are several ways through which you can buy gold and silver within your budget.

As the online buying trend continues, buying precious metals online is becoming an increasingly popular choice. However, there are several other methods that offer more flexibility and liquidity.

How you decide to invest in gold depends upon your personal preference and investment objectives. Still, we are assertive that the information you get from this post will allow you to make a wiser investment choice for your wealth.

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