3 reasons why online gold is worth more than your gold coins

Gold Bars

Gold is universal. Nearly everyone in the world values it. A lot of people choose to hold at least a portion of their wealth in it. That is why you probably went out to buy it in the form of coins or jewelry.

The problem with this is that it is not the most profitable way for you to own gold. A much better way to preserve and increase your wealth is to invest in “online” gold.


What is "online" gold?

Online gold is not about investing in the stocks of a mining company, electronic-traded funds (ETFs) or electronic-traded notes (ETNs) that just track the price of the metal.

Online gold is physical, just like the stuff in your coins, jewellery or bars. The only difference with the gold you have at home is that you buy it through an online marketplace and then it is physically held for you by a service provider like BullionVault.

​Why is online gold a better investment?

​1) Online gold is cheaper to buy

If you watch the news you will often hear the price of gold being quoted. This is called the spot price. But this is not the price you pay when you buy coins or jewellery. The reason is that the price you pay includes the cost of the workmanship to make the coin or jewellery, plus the margins (generally 30-70%) added by the whole chain of middlemen between the raw material and the final buyer (you).

That is not a very good deal for you. What you want to buy is gold but what you end up paying for is the labour, overhead, insurance, storage, transport costs and profit margins of everyone handling the metal before you.

With a service like BullionVault you are buying pure gold directly. You only pay for the precious metal not the extras that waste your money. The price you pay is transparent. It is very close to the spot price plus a small commission (maximum 0.5%) to BullionVault.

2) Online gold retains its value better

Buying coins or jewellery from your local marketplace is a bit like buying a new car. As soon as you are out of the shop your gold (like your new car) is worth less than what you paid for it. This is because anyone can question its the purity and weight. As a private individual, you have no way of providing assurance that it has not been tampered with.

In contrast, what you purchase through BullionVault is accredited and guaranteed in purity. From the moment it is manufactured it is held in independent and secure accredited vaults. Every time the gold is moved a careful record is maintained, providing assurance of storage through trusted hands. This guarantees integrity in a way that keeping coins and jewllery at home, or even in safety deposit boxes, simply cannot match.

3) You can sell online gold for a better price

If you have tried to sell your coins or jewelry you’ve probably noticed problems like:

  • There are not enough buyers around so you either can’t sell when you really want to or you can only sell at an unprofitably low price.
  • The prices you get are lower than expected because the integrity of your valuables is questioned so you are forced to sell at discount because your buyer is taking a “risk” buying from you.
  • It is difficult to sell fractions of your holdings if all you need is a little bit of cash. It’s hard to sell 10% of your coin.

The BullionVault online trading platform solves these problems for you:

  • It is the world’s largest online bullion investment service, taking care of $2 billion for more than 60,000 users. That means there are always literally thousands of people ready to buy your gold at market prices almost instantaneously.
  • Professionals hold your gold with a transparent audit trail so you never need to sell at a discount because it is "risky".
  • You can sell as much (or as little) of your gold as you want, usually down to the gram, making your holdings much more flexible and liquid.

​There are several online services out there but I chose to focus on BullionVault because it is the service I personally use. It works great for me and I know it can for you can too. People like you and me from over 150 countries use the service, so go ahead and give it a try.

  • December 28, 2016
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