How to discover the secret of the Lowest Price with Gold Bullion: Getting the Moment and Playing the Dealer Game
Just to make a long story short, according to clients who buy cheapest gold bullion, you must be sick of paying the premium on every coin. Gold is an obstinate old mule–constant, proven, but he does not like to be pegged. Prices are free agents, and it seems like whack a relative bar at times to locate your window of opportunity. Nevertheless, there exist realistic approaches and certain overtly brilliant tips that can sway the odds in your favour.
Observing the Market: Not Everything is in Time… But it’s too Much.
It is so easy to say, buy low and sell high. Short-term dips in gold are like forecasting the weather in April; it is possible, but you will require a lucky strike. Nonetheless, history adores trends. Gold usually goes down in a calm market, which could be during the summer doldrums (May to August) when it is less frantic. Similarly, sometimes gold plunges during the days preceding the main economic releases or central bank releases as traders hedge their bets.
Ears to the ground: it is not uncommon that pressure on prices is given by Federal Reserve statements, UK spending statements and geopolitical hotspots. Sign up for economic calendars. Pre-set prices. Never slumber about the times when bad stuff sounds far away; these usually offer the best prices.
Dealer Dynamics: Why Dealers Sell Below the Spot?
This is the one that confuses a lot of newbies in precious metals. Surely no one would sell gold below its value? The inside word here is that the dealers must live on small margins and large quantities. They may also lower prices temporarily because of a minimum order amount, oversized inventory, or a need for cash flow. At times, they may even sell a particular bullion, such as the 1oz Gold Britannia, at a price that is marginally even cheaper than the spot price to evacuate stocks or entice you to visit their site. It is a honeytrap: you receive the best price, and they probably acquire a customer to do business with in the future.
The second way: inventory-hedging dealers. When the prices of gold go down, and the hedges in place ensure that gold companies maintain a profitable product price, reducing the product price does not hurt the bottom line; in fact, it will increase customers. The smart buyer benefits.
Sizing and Selection: The smaller in size, the bigger the cost
Have you ever noticed that half-gram or small one-quarter-ounce coins appear more expensive per gram than the big boys do? You are not going crazy. Cost is incurred in manufacturing, transportation as well and packaging. This implies that a single coin denominated in 1oz will often be a better affordable value per ounce compared with four quarter-oz coins. However, it is no reason to overlook smaller bars or smaller coins when your budget is tight; you just should recognise that you are paying a higher premium to have the fluidity.
Buy Local As You Can–And Do Not Discount Internet Deals
It is also possible, especially when online mainstays have old inventory they need to sell quickly, to get a better deal at local coin shops than online. Just pop in and enquire whether they have specials- sometimes, when you are lucky enough, they may give you a handshake deal. Meanwhile, overheads are lower among online dealers and in cases when there are flash sales, which brick and mortar stores can hardly emulate.
Combine the two. Check and call your dealer on the phone regularly. Use online price-comparison sites that will save you the trouble of visiting bullion shops in your area when you do a walkabout to them.
The first tip would be to not wait too long and spot the Flash Sale.
This is a back-door tip that you are not going to hear at the sales desk: the limits sometimes set on a “spot deal” of gold bullion can be absurd. The dealers may be selling a few Britannia coins or bars a little below cost only to generate excitement. It is all over in the blink of an eye. Buy when you notice a bona fide bullion dealer quotes a little less than the well-publicised spot price. First of all, check the reviews of merchants and review the payment methods, but do not think much about that in case you trust a vendor.
Don’t Get Suckered by Gimmicks.
Have you ever come across those free gold offers or quantity deals which give you a dizzy head? It is marketing baloney in 99 cases out of 100. The actual money-off prices are often among the clear, uncomplicated, plain vanilla offers available on the price-comparison sites or even in the specials pages of established dealers. Watch out for any offer that is too strange to believe. Gold is currency- nobody gives it away.
The Details of Payments Count
Cash, bank transfer or crypto-dealers occasionally offer a discount on the high credit card processing fee when buyers can use sluggish cash or wire transfer. Never forget to ask a dealer whether he can give a different price for certain types of payment methods. Once in a while, you can just switch your payment and come nearer the rock-bottom price.
Look Out Whipping and VAT
We should not forget those invisible expenses. Free shipping sounds nice, but there are instances when dealers counter it by quietly increasing the price of the bullion. Never bite off a seeming bargain without doing the maths, including VAT and shipping. Investment in gold in the UK is VAT-free. Nevertheless, ensure that you are not hit by surcharges at the tills.
Purchase the Right Fitting in Your Pocketbook
Common sense is good advice. It is easy to shake a chest and purchase a kilo bar to make premium savings, but separating it to sell only a part of it in the future might be cumbersome. Rather, achieve a compromise. There tends to be a sweet spot with regard to liquidity and value, and this is why 1oz Gold Britannia has remained popular.
