Homepage / Buying Guides: Gold Guide
Last Updated 10/29/2019
Owning physical Gold can become more than a hobby or an investment, for some, like Sméagol (a.k.a. Gollum) in the Lord of the Rings, his "Precious" became an obsession.
Man's obsession with gold has destroyed empires, sparked wars, and forced many into slavery, but the real villain in these scenarios is the Deadly Sin of Greed, not Gold.
Gold is a chemical element with the symbol Au, which is derived from the Latin word: Aurum, its atomic number is 79.
Gold is a soft, yellow, corrosion-resistant element, it's the most malleable and ductile metal, it occurs generally in veins and alluvial deposits and it's recovered by mining, panning, or sluicing.
In the following paragraphs, the guide goes into detail about the fundamental reasons why it's good to own some gold, then it offers a list of reputable gold bullion dealers that offer gold bullion at competitive and reasonable prices.
Gold has been used as money for over 5,000 years.
Doug Casey, the author of the best selling book 'Crisis Investing,' and owner of websites' Casey Research and International Man, wrote one of the best explanations as to why gold is the best form of money.
"...Gold, as we’ve discussed many times, happens to be the best form of money the market has ever produced: It’s convenient, consistent, durable, divisible, has intrinsic value (it’s the second-most reflective and conductive metal [second to silver], the most nonreactive, the most ductile, and the most malleable of all metals), and can’t be created out of thin air."
Murray Newton Rothbard, a well-known libertarian and the co-founder of the
Austrian School of Economics, stated the following about Gold's
role as money.
"Gold was not selected arbitrarily by governments to be the monetary standard. Gold had developed for many centuries on the free market as the best money; as the commodity providing the most stable and desirable monetary medium."
In 1912, during his testimony in front of the U.S. Congress, the founder of J.P. Morgan, J.P. Morgan stated the following about gold.
“Gold is money, and nothing else.” (seen here: page 5 - 4th sentence)
The chart below is from the U.S. Federal Reserve, it shows the value or the purchasing power of the US dollar since 1913.
The next chart is another way of interpreting how the value or purchasing power of your dollar has fallen over the last 100+ years.
Imagine paying five cents for a coke today, the reason why we don't is that inflation has eroded the value of today's dollar, that's what the two charts above show you.
In second chart above titled the "Fourteen Decades of Price Inflation," it points out to you some of the causes of the dollar losing its value, namely the creation of the Federal Reserve, and the complete removal of the Bretton-Woods system also known as the "Nixon Shock."
Learn more about the the U.S. Federal Reserve and the Bretton-Woods system and Nixon Shock by following these two links:
This guide's Price Inflation page offers you many more examples of how today's dollar has lost its purchasing power.
The next chart below is also from the Federal Reserve Bank, it shows the value of real money a.k.a Gold.
The last chart is a combination of the two Federal Reserve charts above, the red-line represents the purchasing power of the U.S. Dollar, and the blue line represents the Price of Gold in U.S. Dollars.
The price of gold in fiat currency started in 1971, when President Richard Nixon closed the 'gold window' ending the Bretton Woods System, before the end of the Bretton Woods System gold was priced at $35.00 an ounce.
Like car insurance protects your car, and home owner's insurance protects your home, Gold is insurance that protects your Money.
Gold and other precious metals are 'de-centralized' forms of money, they have no liabilities and they will never be worth zero.
In addition, gold doesn't have a liability that cash does, because cash is a paper representation for the value of the government that produces it.
Most people save cash to protect themselves for emergencies, which is smart and this guide isn't telling you to stop that practice, what it is informing you of is that cash doesn't always hold its value.
Furthermore, the charts above show you that the cash in your wallet has been losing its value since the early 20th century.
Gold will always have intrinsic value and through that value it can insure your money.
Gold is the truest form of money, it carries the least amount of risk, that's why it is called insurance for your money.
"Cash is a paper representation for the value of the government that produces it"
"When coins of equal face value but different intrinsic value are put into circulation side by side, the coin with the higher intrinsic value will be hoarded and only the coin of lower intrinsic value will remain in circulation." - Sir Thomas Gresham
Gold is an asset with little risk.
This is one of the biggest reasons why an investor purchases gold when the market is falling.
However, this is also the same reason investor's sell gold when the market is rising.
Rising markets give investor's the mindset of "Great Risk, brings Great Reward."
There is nothing wrong with this mindset, without it, many great things would have never happened.
When the market environment is good, investor's sell assets that have little risk to purchase riskier assets.
This causes gold's price to fall, while stocks and other assets rise in price.
But, as the market moves higher, investors adopt an 'all in' mentality, believing the market will not stop going higher.
In this scenario, many investors adopt a 'herd' mentality and flood into the assets that are moving up.
The 'all in' mentality leads to market bubbles, here are some examples of historic market bubbles that destroyed the value of 'all in' investor's money:
Everyone has heard the phrase "Don't put all your eggs in one basket" and all investors should know the word "Diversification."
In every bubble market, the diversified investor was the one who didn't lose everything.
A well diversified investor should own at least 10% of their savings or investment portfolio in gold and other precious metals.
Note: In the 1920's a car's average selling price was $1,500.00 - see the new car chart on this guide's price inflation page: here.
Each one of the Dealers below is an Affiliated Dealer of this Guide, meaning that we receive a commission for every purchase that we refer to them.
Half of every commission helps this guide pay its bills, and the other half goes to someone battling cancer.
All the Dealers affiliated with this guide have been vetted to ensure their business is reputable.
Furthermore, you will find a Customer Review section for each Dealer below, to help you determine whether or not you wish to do business with them.
Cookies on your computer must be Enabled for this Guide to receive a
commission from our affiliates.
Cookies only indicate, to the merchant, that you linked to the merchant's website from this guide. No Personal Information is Obtained in this process.
Note: As a suggestion to anyone interested in buying
bullion from any one of the sites listed below, Please Read each
ordering instructions and shipping rules carefully.
(Gold Bullion page)
BGASC is one of the largest coin and bullion dealers in the United States.
Buy Gold And Silver Coins.com's goal is to be the kind of dealer they've always wanted to trade with: to be in stock, ship fast, be fair & reasonable, and operate honestly and efficiently.
They are an Official PCGS Dealer, member of the Certified Coin Exchange (CCE), an NGC Collector's Society Member, and a Bulk Purchaser of United States Mint non-bullion coins.
Every single package they ship is sent fully insured for its time in transit. Customers all across the country have quickly come to recognize BGASC as one of the fastest, and most trusted online precious metals suppliers in the U.S.
(Gold Bullion page)
GMRgold is a precious metals investing firm specializing in Gold, Silver, Platinum, Palladium Bullion; Rare and Semi-Rare Foreign and U.S. Coins; IRA Solutions; Custom Coins
They are dedicated to ethical business practices in guiding their clients towards long-term financial security.
GMRgold's corporate headquarters is in The Woodlands, Texas.
Founded in 1974, Golden Eagle Coins specializes in a wide variety of Precious Metals Bullion Products.
Their large inventory caters to both the Bullion Investor as well as the collector. They offer every date and size of American Gold & Silver Eagles and carry large quantities of Canadian Maple Leafs, Krugerrands & Silver Bars.
GoldenEagleCoins offers all sizes of Gold, Silver, Platinum and Palladium Bullion Coins, Rounds & Bars.
Their prices come directly from the commodities exchange and are updated in real-time.
(Gold Bullion page)
Stefan Gleason is president of the Money Metals Exchange, which is a national precious metals investment company and news service with over 500,000 readers and 75,000 customers.
Gleason founded the company in 2010 in direct response to the abusive methods of national advertisers of collectible, and numismatic coins.
Money Metals Exchange believes the average investor should never purchase precious metals that are not priced at or near their actual melt value.
Now you can safeguard your assets from financial turmoil and the devaluing dollar – without paying costly middleman mark-ups or fending off high pressure, bait-and-switch sales tactics.
Savvy, self-reliant investors are embracing Money Metals Exchange as their trustworthy resource for gold and silver bullion.
(Gold Bullion page)
SD Bullion is part of the Silver Doctor's network.
In 2011, two doctors started the website SilverDoctors.com with one dream: To educate the masses on the value of hard assets and preparation.
The rapid success of this website gave way to the launch of SDBullion.com in March of 2012. SD Bullion now is one of the most trusted, lowest cost online retailers of bullion.
Since 2012, SD Bullion has shipped more than 300,000 orders and hit Inc. Magazines list of 500 Fastest Growing Companies in the United States twice.
They did all this while staying true to their original mission of offering the absolute lowest prices on gold bullion and silver bullion in the industry, guaranteed.
(Gold Bullion page)
SilverGoldBull provides you with competitive, up-to-minute pricing and we make sure your precious metals are delivered to your door discreetly and fully insured.
SilverGold Bull's in-house customer service representatives will work to assure your satisfaction in a timely, friendly, and professional manner. Never hesitate to get in touch - building relationships with our clients is our number one priority.
If you would like to learn more about what our customers are saying about our service, please view our customer reviews (below).
SilverGoldBull.com has tens of thousands of satisfied customers who have taken their financial future into their own hands by investing in gold and silver.
This bullion dealer is based in Canada and offers a wide variety of precious metals bullion for you to choose from, their commitment to you is to provide extraordinary service throughout your bullion buying experience.
(Gold Collector Coins page)
The Perth Mint is the oldest operating Mint in Australia, it opened on June 20th, 1899.
The Perth Mint is Australia’s largest fully integrated, innovative precious metals enterprise, providing premium gold, silver and platinum products and services to markets throughout the world.
They have invested over one hundred years in servicing and promoting the gold industry by developing and nurturing the markets for refined precious metal products across the globe: specifically, gold and silver bullion and highly-sought-after collectable coins.
As one of Western Australia’s largest exporters, they distribute some $18 billion worth of pure gold, silver and platinum bullion bars and coins to investors in more than 100 countries annually.
The Perth Mint refines and manufactures Australia's famous gold and silver bullion coins including the Gold, Silver, and Platinum Kangaroo Series, the Gold and Silver Lunar Series, and the Silver Kookaburra and Koala Bullion coins.
(Gold Bullion page)
Universal Coin & Bullion is dedicated to providing clients with outstanding collecting and investment strategies for the rare coin market.
Universal Coin & Bullion specializes in U.S. rare coins, Precious Metal IRAs and Gold, Silver and Platinum American Eagles, their acquisition and Expert Buying Team has been building premium collections and providing appraisal services to clients since 1995.
Universal Coin & Bullion® President, Dr. Michael Fuljenz has won more than 60 prestigious national and regional awards for his consumer education and protection work in rare coins and precious metals.
Universal Coin & Bullion, Better Business Bureau Accredited since 1995.
BullionVault is the world's largest online bullion investment service taking care of $2 billion for more than 75,000 users.
The bullion you own is held in vaults.
Bars are stored in professional-market vaults in Zurich, London, Toronto, Singapore or New York. You choose where.
Because of their size, you benefit from the low storage costs they've negotiated, which always include insurance.
with Bullion Vault
The video below goes into further detail about Bullion Vault's services.
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