There are a lot of compelling reasons to buy gold online; it’s a good investment and buying online is cheaper than buying from a brick-and-mortar store, as online dealers save on overhead. First-time gold buyers always have a lot of questions about how they can pay for their gold, given security concerns, transaction fees, and payment clearance times. You can pay for gold with just about any method, from Interac e-transfers to credit card, though buying with Bitcoin may be quickest and most affordable method, especially if you already own Bitcoin.
Below you will find a quick guide to buying gold using different payment methods. Check them out if you want learn about buying gold online and the cheapest ways to do so.
Gold dealers prefer when you buy gold with cash, as it’s instant and doesn’t take time to clear. That helps them maintain their liquidity, so gold dealers such as Silver Gold Bull even incentivize cash purchases with discounts. Paying cash online is as simple as using Interac online or an Interac e-transfer, though spending limits on these methods may necessitate paying with credit card or PayPal. The order limits can be as low as $1,000 for Interac e-transfer.
Verified Credit Card
Buying gold with a credit card will require you to take the extra step of getting a verified credit card like Verified Visa or MasterCard SecureCode. This is for the gold dealer’s security, but it may be necessary to use credit card or PayPal if you’re making a serious investment.
Save Money Using Bitcoin
Cryptocurrencies like Bitcoin have become a popular new addition for currency traders. Bitcoin is a digital currency, “mined,” so to speak, by software programs that solve mathematical equations, creating a scarcity that gives Bitcoin value. Much like gold, there is a finite quantity of Bitcoins in the world and depending on markets, its value fluctuates. For many, using Bitcoin to buy gold is simply a matter of convenience. For others, it adds anonymity – gold investors always have their home security in mind, whether they physically store their gold at home or not. Many people prefer to use a PO Box or have their purchases shipped without any indication that it’s coming from a gold dealer.
More pragmatically, though, you can save money on transaction fees by paying with Bitcoin. PayPal takes a fairly steep fee, 2.9% of the money you send plus $0.30. If you were to buy one ounce of gold at $1,600 Canadian, roughly the value of an ounce of gold on June 2, 2017, you would have to pay a $46 fee. There are also no limits to the size of your purchase when you use Bitcoin, and if you’re buying from Silver Gold Bull, you get to enjoy their cash discount.
Bitcoin is a great way to buy gold online, but there are plenty of ways to go about the process. You can even pay with a cheque or money when you buy gold, but the clearance takes time and your order doesn’t ship until the payment has cleared. Buying gold is an exciting way to invest and there are ways to buy that save you money.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.