The Silver Bear Cafe

Purchasing gold bullion can provide a hedge against inflation. Uncover the numerous benefits of owning physical gold, and how to buy gold bullion pieces for your Precious Metals IRA or for home delivery. Don’t make these mistakes when buying gold bullion…

Buying gold bullion remains an appealing option for Americans who are growing increasingly wary of a volatile economy and other instabilities. If you are looking to protect your own savings and lifestyle, then it may be time to consider investing in precious metals.

Whether you're focusing specifically on retirement plans, diversifying your savings, or making your first serious investment in gold, there are several options that could help you achieve your individual goals.

Before you make a purchase, take the time to think about what you hope to gain by buying gold bullion. How does it fit your current investment strategy? How long do you plan to hold the assets?

Answering these questions will help you and your precious metals specialist create a focused strategy that is customized to your needs. Let's take a look at some of the key considerations to make when investing in gold, which may play a role in your overall strategy.

Key Takeaways

Gold bullion is refined gold in the form of bars, coins, or rounds that are commonly used for preserving wealth.
Gold bullion purchased for placement in a Precious Metals IRA must meet the purity standards, which is 99.5 percent pure.
There are several benefits of buying gold bullion, including diversifying retirement savings, hedging against inflation, and protecting wealth.
Your gold bullion can be stored and protected at a precious metals depository that features armored vaults, 24/7 monitoring, and other security features.
It’s important to purchase gold bullion from reputable dealers that ensure your gold bullion meets the purity requirements.

You’ve probably heard the term “gold bullion” before, but what is bullion exactly?

Gold bullion is refined gold that’s typically used for investing in precious metals. People buy gold bullion to hold it as an asset or contribute to a Precious Metals IRA. Gold bullion can come in various forms, including bars, rounds, and coins. The primary difference between gold bullion bars, rounds, and coins comes down to shape and value.

Gold bullion bars can come in various sizes and weights, while gold bullion rounds are small, flat, and cylindrical, with their value tied directly to their metal content. Both gold bullion bars and rounds typically have lower premiums compared to gold bullion coins, which is enticing to some individuals. Gold bullion coins have the same shape as rounds but have a face value attached to them by their issuing country. The primary difference between gold bullion coins and rounds is that coins are issued by governments, making them legal tender, whereas rounds are issued by private mints. With well-documented purity and larger batches produced by the issuing mint, gold coins tend to have higher premium costs and a greater level of universal acceptance.

Gold bullion must meet the 99.5% purity standards for contributing to a Gold IRA, except for the American Gold Eagle coin, which has a purity requirement of 91.67%. When working with your reputable dealer, ensure the gold bullion you’re interested in buying meets the purity standards if you’re purchasing for placement in an IRA.

If you’re considering buying gold bullion, you should start by assessing your finances and long-term goals. If you want to preserve your savings through a physical asset, buying gold bullion offers several benefits.

One of the main reasons why investors consider buying gold bullion is for diversification. Any financial advisor will tell you that diversification is a fundamental strategy for investing. Whether you plan to move a significant percentage of your portfolio to gold investments, or just a portion of it, diversifying your assets can help safeguard against the risks of investing your entire savings in more volatile assets.

Precious metals have consistently been seen as a safe haven, and over time have been a key ingredient to a balanced investment portfolio. Economic volatility is one of the biggest threats to investors planning for retirement.

When the economy hits a downturn, it can rapidly derail an investor's financial goals. And since the economy can be influenced by so many different factors, it's no wonder that investors choose to protect their savings with more stable investments.

Hedge against inflation

Buying gold bullion can also be used as a strategy for preserving your wealth, lifestyle and purchasing power. Over the past decade, the dollar has continued to decline in value. This alone can have a very detrimental effect on Americans' future spending power and overall wealth. Fortunately, gold bullion can be used as a strategy to hedge against inflation and thus shield your wealth from economic instabilities.

High liquidity

Gold bullion is an extremely liquid asset that tends to increase in value as the dollar declines. Gold bullion is globally recognized as a store of value, with consistent demand from investors, industries, and central banks. Gold’s demand, paired with its precise standards of weight and purity that make it easy to verify and trade, ensures it can be sold almost anywhere, at any time.

Growth potential

It's important to also consider the growth potential of gold. Historically, the price of gold has increased over time, weathering geopolitical events and economic turmoil, proving itself as a reliable asset with strong growth potential. This is yet another reason why individuals use gold as a fundamental piece of their investment portfolio. Review our precious metals pricing chart to view the live and historic prices of gold and other metals.

Once you’ve decided you want to buy gold bullion, there are a few steps you can take in order to reap the advantages of this precious metal. Take a look at how to purchase gold bullion below to start safeguarding your wealth:

1. Determine your savings goals

Before you purchase gold, think about your savings goals. Are you trying to protect your money against inflation, or save for retirement? Your goals will help determine whether precious metals are right for you and how much you should purchase. Consider speaking with a financial advisor to learn how investing in precious metals aligns with your savings goals.

2. Find a reputable dealer

When buying gold bullion, it’s important to work with a reputable precious metals company to gain access to professional experts who can provide knowledge and information on making a decision that aligns with your financial goals.

3. Choose between physical possession and a Gold IRA

Once you identify a dealer, you will need to decide if you want to take physical possession of your gold or buy it within a Gold IRA. Through physical possession of your gold bullion, you can directly hold the gold in its tangible form, with the gold being sent to you or stored in a safe location. Physical gold can be stored in a home safe, a bank’s safety deposit box, or a private vault. With physical possession, you will have complete control and access.

If you’re interested in buying gold bullion to protect your retirement savings, a Gold IRA can be a great tool for preserving your wealth. Opening an account is as simple as filling out the necessary paperwork. At Birch Gold Group, a Precious Metals Specialist can guide you throughout the process and put you with a reputable Gold IRA custodian who can help manage and facilitate transactions. We require account holders to start their accounts with at least $10,000. There are various ways to fund your account, such as rolling over an eligible IRA, 401(k), 403(b), 457, TSP, or similar retirement plan.

4. Choose the type of gold bullion

There are a few types of gold bullion, including coins, rounds, and bars. Bars and rounds may be a better choice if you want to purchase gold bullion at a lower premium, but coins may be preferred if you’re interested in bullion with a face value and well-documented purity. A Precious Metals Specialist can walk you through your options, providing valuable information to help you make an informed decision. Think about how much gold you want to purchase and choose the type of gold bullion that aligns with your goals and finances.

Once you purchase your gold bullion, the final step is to ensure it’s protected. For many, a precious metals depository is a great option for safely storing your gold. However, gold bullion can also be stored at home or in a safe deposit box. It’s important to note that gold bullion purchased for placement in a Precious Metals IRA must be stored in an approved depository.

At Birch Gold Group, our team can put you in contact with highly-rated depositories like Delaware Depository or Brink’s Global Service. Precious metals depositories are equipped with state-of-the-art security equipment to protect your gold. If the unexpected happens, your gold is also insured.

What are common mistakes to avoid when buying gold bullion?

Buying gold bullion is fairly simple, but there are a few mistakes to be aware of. Here are some of the common mistakes people make when buying gold bullion:

Buying gold bullion can be a great way to protect your savings against inflation and diversify your retirement portfolio, such as in a Gold IRA or Gold Roth IRA. Before you buy, consider speaking with a financial advisor about your budget, savings goals, and financial goals.

Our knowledgeable precious metals advisors are happy to speak with you about your unique investment goals. Rated A+ by the Better Business Bureau, Birch Gold Group is dedicated to helping our customers protect their savings with gold, silver and other precious metals.

From gold bullion coins to Precious Metals IRAs, we offer a wide variety of options and can help you determine what may be best for your situation.

Simply fill out the form on this page to request more information about investing in gold, or call us today at (877) 749-7738.