When it comes to buying gold, the type of retailer you choose will have a major impact on whether or not your purchase is reported or if you can remain anonymous. For instance, you can go to a pawn shop and buy gold coins and other items such as jewelry, and usually sign some document verifying the transaction. If you buy small amounts at once, you can remain anonymous and don't have to provide any personal information. This gives the average buyer an advantage when buying in small quantities.
It's best to buy locally and pay in cash, as checks and cards may be a loophole. Online dealerships also provide customers with the privacy of shopping from the comfort of their own home. However, those who shop at local outlets cannot remain anonymous. Once seen visiting a local coin store, others may realize and assume that the person owns some type of precious metals.
This lack of privacy can make them potential targets for theft, robbery, and even assault. It is possible to buy gold anonymously depending on the total purchase amount and the order method. According to the legal guidelines and regulations related to the Money Laundering and Terrorism Financing (Prevention) Act (Wwft), we always reserve the right to refuse requests related to the anonymous purchase of precious metals. It's important to buy it physically as there are certain paper products that don't guarantee that you actually have gold.
Now that the world's currencies are not backed by gold in the hands of the government, the paper market for gold has grown significantly as people seek to buy money backed by a physical commodity. That said, gold prices can be very volatile, meaning that gold is not a totally safe investment (not even primarily). Only in 1971, when Nixon broke the gold standard, did the entire world begin the transition to the fiat system using paper money that is not backed by gold. Jewelry, especially old pieces that are likely to have a higher gold content, can provide another avenue to buy gold.
Another option that allows customers to buy precious metal stocks is mining stocks, except that these stocks are through the stock exchange of gold and silver mining companies. When selecting a gold storage company, make sure you know that you own the gold directly and that it belongs to you only. This gives you exposure to gold as an investment without the risk or headache of handling physical gold. However, keep in mind that just like with gold coins, you're likely to pay more for the amount of gold you actually receive.
You want access to your gold in a crisis and you don't want to go around with a kilo of gold. To successfully buy futures or gold options, you need a brokerage account and a wealth of industry knowledge. When buying, it's important that the price of the physical ounce of gold is as close as possible to the spot price of paper gold. This is especially important if bullion is expected to be stored in a gold IRA; less pure gold, unless it is a specifically pre-approved gold coin, cannot be held in an IRA.