Over the last few years, we’ve seen a kind of modern-day gold rush: Tons of people are buying gold. It’s easy to do (you can do it online), and many financial experts endorse gold, hailing its proven worthiness to hedge against inflation, as well as its ability to appreciate and hold strong during times of economic upset.
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Buying gold can be a savvy move, but you have to be extra careful in how you go about it when doing so online. GOBankingRates spoke with precious metals experts to learn the five steps to safely buy gold online.
Also see six reasons gold is a better investment than Bitcoin.
Research the Company’s Reputation
When selecting a company to buy gold from, make sure to do thorough research around its reputation. Is the company well reviewed, and does it come highly recommended?
“For buying gold safely online, we would recommend focusing on the company’s reputation,” said Brett Elliott, marketing director at Apmex. “If a company selling gold online has been in business for many years and has maintained a good reputation, it’s likely to be safe. The standard advice to check reviews and ask your peers applies here as well.”
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Investigate the Company’s Track Record
Make your gold-buying journey even safer by ensuring that the vendor can prove they are knowledgeable, experienced and fair.
“Perform due diligence on them,” said Alex Ebkarian, chief operating officer and co-founder of Allegiance Gold. “Investigate their track record, ensure transparent pricing and their history of delivering genuine products.”
In terms of conducting due diligence, that’s not all you should do. You also need to do the following, according to Ebkarian.
- Look for accreditation from consumer protection agencies, like the Better Business Bureau or Business Consumer Alliance.
- Focus on unbiased ratings from trusted sources, such as the Better Business Bureau and Business Consumer Alliance, as some marketing websites may be biased due to compensation from listed companies.
- Research the dealer’s history. Every state offers a free search to check registration dates and compliance with state requirements.
Verify the Authenticity of the Gold
Gold bars and coins have special distinctions that reflect their authenticity. You need to know what these look like and how to identify them.
“Look for recognized hallmarks or mint markings on coins and serial numbers on bars,” Ebkarian said. “Consider using a trusted third-party assay service to verify purity and authenticity.”
Be Very Wary of Imposter Sites
Online scams are becoming more common, and the precious metal industry is an easy target. Ensure that you’re not so much as even browsing on a fake company website or one that’s posing as another, reputable one.
“Some scammers create fake websites that mimic well-known brands,” Elliott said. “One of the tell-tale signs these sites are not legitimate is they will sometimes offer gold and silver products below the spot value of the metal. In general, retailers are unable to offer precious metals below spot value without taking a substantial loss. If a deal seems too good to be true, it is.”
Arrange For Safe Payment, Shipping and Storing
Once you’ve concluded that you can safely purchase gold online and have pulled the trigger, arrange for safe payment and safe delivery. And make sure you have a place to safely store your gold.
“Post-purchase, keeping your gold safe is paramount,” said Miraj Ladwa, director at Bullion Giant. “Many secure vaults offer bank-grade security, often requiring ID, fingerprints or facial recognition for access. This step ensures your investment is protected in the long term.”
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This article originally appeared on GOBankingRates.com: The 5-Step Way To Safely Buy Gold Online
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
