Regarded as the symbol of prosperity and wealth, gold is the most popular precious metal in the world. This rare metal serves as a wonderful source of income for many. Unlike other investments, gold is non-volatile and stable. Economic instability and inflation hardly affect the investment returns of this precious metal. One way to invest in this metal is by purchasing it as bullion.

Bullion is simply the physical asset of gold. It can come in form of coins, bars, and ingots. This bullion may not be regarded as an investment per se but as an excellent way to save for the future.

Having physical gold is a fine way to ensure that wealth is preserved in a family for many generations. It also helps investors to diversify their portfolios. For these reasons, many today are buying physical gold.

There are different dealers available to buy bullion from. You can find them online or in a physical store. If you are not certain about how to choose the right one, Bonds Online has a great review on different dealers to choose from. You can check there for help.

In view of this, let us discuss what is involved in purchasing bullion and some factors you should consider before buying this physical gold from a dealer.

Buying Gold Bullion

The following are some things you should know before buying this physical metal:


The purity of this precious metal can be measured in fineness and karat. Karat is the normal way to measure the purity of gold. The higher the karat, the purer gold is. The purest gold is measured at 24 Karat. This pure gold is suitable for making bars and coins but cannot be used to make pieces of jewelry.

Fineness is the weight of pure gold proportional to the weight of the gold, including impurities. 24 karat is 99.9% pure while 22K is 91.66% fine. For investment purposes, choose bars or coins that are 22 to 24 Karats pure.


Hallmark is a sign that indicates the genuineness and purity of bullion. So, when purchasing physical gold, it is vital to check if this hallmark is engraved on it.


Gold bars and coins come in different weights ranging from 10g to 100g. It is important to check the exact weight of your bullion before buying it. Some dealers can create small bars or coins called guineas. If you are interested in such small size bullion, look for dealers that specialize in them.


Where you will store the bars or coins is important. Although many banks provide safety deposit boxes, some investors do not trust these banks. They prefer buying a safe and keeping it in their homes. So, before you buy bullion, consider if you would own a safe or store it in the bank.

Factors to Consider Before Buying Gold Bullion from a Dealer

Here are a few factors to keep in mind before buying from a dealer:


The first thing to consider is where you will like to purchase the physical metal from. Would you prefer to buy from an online or a physical dealer? An online dealer is more ideal and better than a physical dealer. Prices of bullion online are always lower than that of physical stores. Also, online dealers can transact business in both national and international markets. So even if you live in a different country, you will be able to buy bullion online.

However, buying from online dealers can expose one to scams. Gold is very expensive so one needs to be careful when purchasing it online. If you are not confident in an online transaction, it is better to use local physical dealers.

Local dealers have physical shops that you can see. You can inspect the bullion before purchasing it. These dealers can also allow you to get small quantities of bullion. However, they offer their bullion at very high prices.

Whether you buy from a local or online dealer, each of them will come with a measure of risk.

Experience and Good Reputation

It is very important to buy bullion from dealers who have many years of experience. Due to an increase in gold’s price, many new dealers are popping up every day. Sadly, some of them have little to no experience in gold investment. Buying from such inexperienced dealers can be dangerous. Only choose firms that have been in the business for years and have a good reputation in dealing with customers.

If you choose an online dealer, make sure to check out their reputation online. Notice what other people say about their business. If there are more positive reviews about the firm, then they are reputable to deal with.

You can also use the Better Bureau Business site to check out the reputation of these dealers. The website rate businesses based on their experience from A to F. If a dealer is A-rated, you can confidently transact business with the firm. To understand how to use the Better Bureau Business website to do this, check here:


Whatever dealer you choose must offer a wide range of bullion products. Many sellers choose to specialize in one product like bars or coins, but it is good to pick a dealer that sells both bars and coins.

Consider Buyback Policy

It is not possible to keep bullion forever because at one point you will want to sell it. It is easier to sell the bars or coins to the dealer that sold them to you. So when choosing a gold dealer, ask if they offer a buyback policy.

Consider Payments

Reputable dealers must offer multiple payment options. They should be able to accept credit or debit cards and cash payments.


When choosing a dealer, it is not wise to choose the one with the lowest prices. It is best to compare dealers and the prices they offer. Some shady sellers may bring down the prices of their gold to get customers, and then increase it afterward. So be careful not to fall for offers that are too good to be true.


Buying physical gold is an investment that is worth trying out. The value of this metal will keep increasing and in the future, you will gain great profits from it. However, before you purchase this physical asset, make sure you understand what it involves and how to get them from a reputable dealer. This knowledge will be helpful to you.