How to Buy Gold Without Getting Ripped Off

Which precious metal has been called the money of kings?

Gold.

How do you celebrate a 50th anniversary?

Gold.

What do you see Olympians chomping on after taking first place?

Gold.

How do you go about buying some?

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In order to help answer that last question in case you’ve been considering hoarding bullion as a way to secure your finances in an era when the stock market rises and falls based on tweets, we talked to Alexander Haus of JM Bullion, the fastest-growing precious metals firm in the U.S.

If you’re still green in the gold-buying department, here are five insights to get you in the game.

Buying gold isn’t like flipping houses
“If you’re playing the stock market, you’re trying to see a daily return. With metals, it’s more of a money preservation technique. It’s a safe-haven asset that’s had historic value across all markets. It’s a way to protect your wealth, not increase it.”

Finding a deal is as simple as paying attention
“The best way to find a good deal is to pay attention to the brand and premium above spot. My personal rule of thumb is to purchase one and 10-ounce bars as the breakeven rates are typically much lower and they are the easiest to sell. Additionally, buying low mintage coins during initial release has some allure as they will increase in collectors value as time advances and supply dwindles.”

Check your sources
“When buying online it’s important to look at all public reviews, and fortunately, there are a number of sites that review bullion dealers. Most companies should be members of the ANA and CCE as well as BBB-approved and offer consumer protection with security features. If the deal is too good to be true, it may be shady. If the seller wants to meet in an alley, it may be shady.”

Don’t act like an Olympian
“In reality, the act of biting gold is largely a cliché and novelty which grew from media. This technique was used rarely if at all. Most gold bars come with an assays card or COAs in tamper proof, sealed plastic case. Assays are verification signatures completed by the assayer in a refinery to verify authenticity.”

Get a safe
“It’s best to keep your metals in a climate-controlled location with low humidity, away from light. Buying a big safe is recommended if you plan on being a stacker, and although I am not an advocate of this, people do use security boxes.”