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Cheapest Places to Buy Gold: How to Invest in Gold and Silver

by | Feb 17, 2021 | Offshore

During uncertain times, how can you provide yourself with some financial security?

Diversifying your assets can help provide a type of “insurance policy.” If you want to add that extra layer of security you need to consider investing in gold, silver, and other precious metals. 

There are plenty of benefits to investing in gold, silver, and other precious metals and it’s possible to get gold for a reasonable price if you know the right place to look. 

Where can you buy gold cheap?

In this article, we’re going to discuss

WHY INVEST IN GOLD AND SILVER

Gold and silver have been a consistent store of value throughout history. This means that while paper currencies can plummet in value, precious metals continue to keep their worth. This can be a great way to protect yourself in the event of an economic crash. 

Investing in precious metals is a great way to diversify your assets. Diversification allows you to put your money into various investments rather than putting all your eggs into one basket. 

Having your savings in gold, silver, and other precious metals is a much safer option than keeping your savings solely in paper currency. 

One danger of paper currency is that more of it can be printed without anything really backing it. The more this happens, the less paper currency is worth. Gold, on the other hand, is a natural resource. The government can’t just make more gold whenever they want. 

HOW GOLD IS PRICED

The price of gold is based on supply and demand. As more people go to invest in gold, the price of gold will rise. If you want to purchase gold, here’s what you should know. 

The gold spot price is the price of gold at the time it was purchased. This is how much you paid when you bought it. 

The gold futures price uses a contract for what the gold is predicted to be worth in the future. The most important gold and silver futures markets are located in London and Chicago. All other gold prices are based on how gold is priced there. 

Most gold and silver are sold at a spot price. These prices can be marked up based on how much minting, transporting, and storing the cost of the precious metals. This premium is what makes gold coins cost more than gold bars when comparing their prices ounce by ounce. 

BARS OR COINS? 

When you’re looking to invest in gold, there are different options for what to buy. Should you buy gold in the form of bars or coins? Which is cheaper? Which is worth more? 

Gold bullion is at least 99.5% pure gold. Gold bullion can be made into gold bars or gold coins. 

Pure bars of gold tend to be cheaper because of the lower premium you get when you buy in bulk. Gold bars can be .999 (99.9%) pure gold. 

If you want a lot of gold and are primarily interested in investing for savings purposes, gold bars can be a great option. 

Gold coins are more practical if you ever need to really use them for trading or making a purchase. Some coins are also more recognizable than others. Coins that are more recognizable are easier to use for trade. 

Coins can cost more than gold bars because they have a higher markup price. You pay more for recognizability and for the cost of making the gold into coins. 

Gold bullion coins are made of .999 pure gold. However, not every gold coin or silver coin is going to be made of pure gold. 

Some gold coins may be worth more than others due to the rarity of the coin. At the same time, some gold coins are so obscure that you won’t be able to easily use them for trade. 

THE MOST RECOGNIZABLE GOLD COINS

There are a lot of different gold and silver coins. What is it that makes one coin more valuable than another? 

Some coins are universally recognized, while others are more obscure. The more recognizable a coin, the easier it is to use should you ever need it as currency. 

The most universally recognized gold and silver coins include: 

  • US Eagles
  • Austrian Philharmonics
  • Canadian Maple Leaf
  • South African Krugerrands

THE CHEAPEST COUNTRIES TO BUY GOLD

Where is the cheapest place to buy gold and silver? Let’s get into the specific places where you can buy cheap gold coins. Looking only at coins will make it easier to compare the countries. 

These prices can vary over time depending on supply and demand and economic stability. As you are shopping for gold, you may find deals that are even lower, but often these sell quickly and the supplies will run out of stock. 

The spot price on gold was $1,886 per ounce when this article was written. Knowing this, you compare the prices each country charged to figure out the premium you have to pay for the gold coin. Remember, the premium is the extra cost that is charged above the spot price that accounts for the minting of the coins, transportation, and storage. 

Hong Kong 

Hong Kong is currently the cheapest place to buy gold. The premium on Australian Nuggets, a type of gold coin, in Hong Kong is some of the cheapest gold to buy in the world at around $1,936 for a one-ounce gold coin. 

Switzerland 

There’s a reason Switzerland is known in the offshore world and it’s not just because of what you see in movies. Switzerland is a great place to buy cheap gold for as low as $1,943 for a one-ounce gold coin. Switzerland also has a lot of great options for storing your gold safely.  

United States

This one might seem a bit surprising, but the US is actually one of the cheapest places to buy gold. There are times when the US offers special deals and very low prices – sometimes even lower than Hong Kong. Generally, you can find gold coins in the United States for as low as $1,948. 

Austria 

Austria’s best deals for gold prices are about the same as the best deals in the US with gold coins costing a low price near $1,948. You can buy newly minted gold coins in Vienna. There are also some great options in Austria and Vienna for gold storage. 

Cayman Islands 

You don’t have to store your gold far away on an island to purchase gold there. You can remotely purchase gold coins in the Cayman Islands for as low as $1,958. 

Singapore 

Singapore is not only one of the greatest places to store your gold and precious metals but is also a great place to buy gold coins at a relatively low price of around $1,960 for a one-ounce gold coin. Singapore is also a great option because there is a large assortment of places from which to buy your gold. 

Australia 

Australia’s cheapest gold coins are near the same price as cheap gold coins you can get in Singapore at around $1,962 per one-ounce gold coin. 

Liechtenstein

At this point in the list, these prices are a bit more expensive in comparison. The small country of Liechtenstein has gold coins for as low as $1,972. Liechtenstein also has great options for storing your gold. 

Canada 

Gold coins in Canada can be bought for as low as $1,978. 

United Kingdom

The most expensive price on this list comes in at $1,979. The lowest price for gold coins in the United Kingdom comes with about a $100 premium. 

BUYING GOLD ONLINE

Can you buy gold online? 

The short answer is yes. But the questions don’t stop there.

For starters, what is the cheapest place to buy gold online? Large retail websites will often give you a great deal if you buy your gold in bulk. 

But what are the downsides to buying gold online? 

What you need to be most aware of is:

  1. How much does it cost to ship gold?
  2. The risks of shipping gold

If you buy your gold online, it’s best to find a website that offers free shipping. Shipping fees for something as heavy as gold, silver, and other precious metals are very expensive. If the website doesn’t have an option for free shipping, you should probably consider buying from a different website or even traveling to buy your gold in person. 

There is also a certain amount of risk in shipping your gold, as there is when you ship anything. There’s always a slight chance that your gold could be lost in the mail, or even a possibility for it to be stolen. Many websites will give the option of paying an extra fee to insure your gold. This will help to make sure that once you’ve purchased your gold online, it actually gets to you. 

Some websites to look into for purchasing gold and silver: 

  1. Kitco.com
  2. Silver.com 
  3. APMex.com
  4. GoldSilver.com
  5. JMBullion.com 

WHERE TO STORE GOLD 

Once you’ve invested in gold, silver, or other precious metals, where is the best place to store your gold to keep it safe?

HOME SAFE

One option is to keep your gold stored at home. If you go with this option, you’ll definitely want to invest in a safe. A safe can protect your gold in event of a robbery or fire.  

BANK

Another option is to store your gold in a bank. Many banks will give you the option to rent out a safety deposit box. This can keep your gold safe, but often comes with an expensive fee and will require you to report your gold and silver assets to the IRS if you are an American citizen. 

OFFSHORE GOLD STORAGE

Your best option is to utilize offshore gold storage. Storing your gold overseas is a great and safe option that can save you money and reporting obligations if you’re American. 

This is also a great option for protecting your assets and diversification. Storing gold outside of your home country protects your gold from your county’s government. 

If you’re going to store your gold offshore, here are a few things you should know. First, where shouldn’t you store your gold? 

Avoid storing your gold in the United States, especially if you’re American. You might also consider avoiding storing your gold in countries that are part of the European Union. The reason for this is that the US and EU are more likely to place restrictions or to tax your gold storage. 

It’s also a good idea to avoid countries that are heavily influenced by larger countries. While these countries may not currently have any red flags surrounding their gold storage policies, if they are heavily influenced by a large country like the US or Russia, that larger country can easily pressure them into making some changes that could hurt you and your assets that are stored there. 

Where should you store your gold? Your main priority is to keep your gold safe and accessible if you ever need it. You want to store your gold in a stable country with a solid reputation. 

There are many things to consider when deciding where you want to store your gold and other precious metals. Some of these considerations include: 

  1. How safe are the country, the storage facility, and the vault? 
  2. Is there a language barrier? A language barrier can make it more difficult to store your gold. You want to make sure you are able to communicate with the people who are keeping your precious metals safe. 
  3. Is this country neutral? Like we mentioned before, if a country is under the influence of a larger country or is directly involved in some sort of conflict, you shouldn’t be storing your gold there. 

So, where is the best country to store your gold? These are our top three:

  1. Singapore is one of the best possible places to store your gold. 
  2. Switzerland has a great reputation that’s been around for a long time. 
  3. New Zealand is a very neutral country that’s well-developed and quickly becoming a wealth haven. 

REPORTING PRECIOUS METALS

If you invest in a foreign business or country or have foreign assets as an American, you are required to report these assets to the IRS. If you keep your precious metals in a safety deposit box in a bank, that is reportable. However, you do not have to report your gold, silver, or other precious metals if you store them properly. 

Privately vaulted gold, silver, and other precious metals are non-reportable assets. This is one reason why privately storing your gold overseas is your best option for storing your gold if you are American. 

CONCLUSION

Now more than ever is the perfect time to diversify and protect your assets. If you are looking to diversify, gold and silver are the way to go. 

Consider what form of gold you want to buy, where you want to buy it, and where to store it. 

Remember that gold keeps its value more than paper currency and is a nonreportable asset.

With all these benefits, there’s no reason not to invest in gold. And as long as you do your research, you can find a great deal. 

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