Oliver Temple looks at how to choose a reputable gold bullion dealer.
The recent economic downturn saw many spreading their portfolios by investing in gold. The unstable Greece situation will probably see even more demand for the precious metal as investors try to protect their financial assets.
Gold performs well during economic difficulties. Wise investors such as Jim Cramer – worth around $100 million – advises that gold should be part of investment portfolios.
"I think that 10 percent is the upper limit because I consider gold as an insurance policy and no worthwhile insurance policy should be 20 percent of the money you have invested," Cramer says.
Hard To Differentiate
If you are thinking of becoming a gold investor, it may seem hard to differentiate between bullion dealers that are ‘ok’, and those which offer something exceptional especially when some dealers’ websites seem so anonymous and cluttered.
The fact is that over the last few years the market has been flooded by businesses offering services for buying gold online. Not all bullion dealers are the same.
I suggest it is about having a gold bullion partner that you can trust. After all, you may wish to trade gold with them for years to come.
I like to ask for personal recommendations before I buy anything including online. This is of course not always possible so I try the next best thing which is seeking out online reviews.
Unfortunately it now seems that these can not always be trusted. The Competition and Markets Authority (CMA) are currently investigating fake online reviews. They report that some businesses:
- Commission or write fake reviews to undermine rivals
- Write fake reviews of themselves to boost their ratings
- Cherry-pick positive reviews
First impressions do count. The following may help with choosing a reputable gold dealer.
Top Ten Tips
1. The dealer’s website – is it clear to use? Are the people behind the business featured? Is the website frequently updated?
2. Can you buy and sell gold online?
3. Do they offer live gold prices – can you sign up for free price alerts?
4. Location – does the dealer have a physical location? Can you drop in and see them easily?
5. Does the business have a long trading history?
6. Does the dealer offer sound knowledgeable advice either on the phone, in the office or through the website?
7. Are all their gold bars 0.9999?
8. Are they a Good Delivery dealer?
9. Do they offer secure storage options
10. Does the business lead while others follow?
Not all gold bullion dealers are the same and as a new gold investor it can seem bewildering. Choosing the right dealer could help with building your family nest egg for years to come.
If I can help in anyway please get in touch either on the phone, via email or by popping into our City of London offices.
Tel: 020 7283 7752
Fax: 020 7283 7754
Gold Investments Limited
88 Gracechurch Street
London EC3V 0DN
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