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4 expensive mistakes to watch for when buying 1-ounce gold bars, experts say
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Gold has hit several new highs so far in 2024. The trend started in March when the price of gold hit a record high of $2,169 per ounce. Then, in late May, the price of gold climbed to another high of $2,450 per ounce. And, while the price of gold has cooled recently, with today’s price closer to $2,300 per ounce, the cost of gold per ounce is still up several hundred dollars from the start of the year.
The price of gold isn’t the only draw, though. The precious metal also offers unique benefits to investors, such as acting as a hedge against inflation. And, there are many gold investment options to choose from, including gold individual retirement accounts (IRAs), gold stocks or gold coins. But one in particular that may be worth considering right now is 1-ounce gold bars, as they are affordable and relatively accessible for most investors.
But despite the popularity of 1-ounce gold bars, experts say there are some expensive mistakes to avoid when buying in. Here’s what you should know.
Start comparing your top gold investing options online now.
4 expensive mistakes to watch for when buying 1-ounce gold bars, experts say
Be sure to keep an eye out for these big missteps if you’re going to add 1-ounce gold bars to your portfolio:
Not purchasing gold bars from a reputable source
One of the most costly mistakes you can make when buying a 1-ounce gold bar is getting one from a less-than-reputable source. Doing so could result in losing some or all of your hard-earned money.
That’s because gold bars can be counterfeit, and with today’s high gold prices, there’s a big incentive to do so. So, if you’re not ensuring that your gold bars are coming from a reputable source, you’re putting yourself at risk of big monetary losses.
“Counterfeiting is a real problem in the precious metals industry,” Brett Elliott, director of marketing at American Precious Metals Exchange APMEX, says. “Gold is often a target due to its high value. If you never buy gold from an unknown seller, especially one asking for less than gold’s spot value, then you will never be scammed.”
You can avoid potential scams by checking a company’s accreditation status, says Alex Ebkarian, COO and co-founder of precious metals dealer Allegiance Gold.
Ebkarian recommends looking for dealer accreditation from consumer protection agencies like the Better Business Bureau or Business Consumer Alliance. You may also want to look at other types of information about the dealer, too.
“Every state offers a free search to check registration dates and compliance with state requirements,” Ebkarian says.
Find out more about the big benefits a gold investment could offer you today.
Not shopping around
Another potentially expensive mistake is not shopping around for the best deal. You should shop around to get price quotes, experts say, and if you’re buying gold bars online, make sure the price includes shipping. Otherwise, the shipping costs could add a lot to the cost of your purchase.
In general, experts say you shouldn’t pay much more than $100 over the spot price of gold for 1-ounce bars. And, depending on the manufacturer and other factors, you may be able to buy 1-ounce gold bars for between $20 to $30 over the spot price.
According to Elliot, you may want to avoid buying from pawnshops, which he says often have the worst deals on 1-ounce gold bars.
Buying bars without seals
Purchasing a gold bar without a seal could also be a mistake, says Ebkarian.
“While you can buy a non-sealed bar and pay less than the normal market price, it’s very important for the bar to be sealed to give the confidence of the new buyer when the time comes to sell,” Ebkarian says. “The most reputable private mints provide a carded gold bar with an assayer number in the back for authentication purposes.”
Not researching the dealers to sell to
Before you invest, Nick Fulton, managing partner of USA Pawn of Mississippi, recommends finding a dealer who pays the most for 1-ounce gold bars. That way, you can get the most possible for your gold bars if you need to sell in a pinch.
“Depending on the premium, the buyer will be upside down from the start,” says Fulton.
Fulton recommends finding a dealer that pays as close to the gold’s spot price as possible.
The bottom line
Before you purchase a 1-ounce gold bar, it’s crucial to do your research and shop around. Doing these two things can help you avoid scams and get a good deal from a reputable dealer. And, doing that while avoiding the big mistakes outlined above may be the best approach to your investment into 1-ounce gold bars.
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McDonald’s investing $100 million to lure customers back to the fast food giant after E. coli outbreak
McDonald’s is investing $100 million to bring customers back to stores after an outbreak of E. coli food poisoning tied to onions on the fast-food giant’s Quarter Pounder hamburgers.
The investments include $65 million that will go directly to the hardest-hit franchises, the company said.
The U.S. Centers for Disease Control and Prevention has said that slivered onions on the Quarter Pounders were the likely source of the E. coli. Taylor Farms in California recalled onions potentially linked to the outbreak.
The E. coli outbreak has sickened 104 people in 14 states, federal health officials said in an update on Wednesday.
At least 34 people have been hospitalized, and four developed hemolytic uremic syndrome (HUS), a serious condition that can cause kidney failure. An 88-year-old man who resided in Grand Junction, Colorado, died, as previously reported. The illnesses began at the end of September, and the most recent onset of illness occurred as of Oct. 21, according to the U.S. Food and Drug Administration.
The Food and Drug Administration has said that “there does not appear to be a continued food safety concern related to this outbreak at McDonald’s restaurants.”
However, the outbreak hurt the company’s sales.
Quarter Pounders were removed from menus in several states in the early days of the outbreak.
In a statement Wednesday obtained by CBS News, McDonald’s said it had found an “alternate supplier” for the approximately 900 restaurants that had temporarily stopped serving Quarter Pounders with slivered onions.
“Over the past week, these restaurants resumed the sale of Quarter Pounder burgers with slivered onions,” McDonald’s said.
CBS News reached out to McDonald’s on Saturday for a statement regarding the reported investment.
Health officials said Saturday they have confirmed the first U.S. case of a new form of mpox that was first seen in eastern Congo.
The person had traveled to eastern Africa and was treated in Northern California upon return, according to the California Department of Public Health. Symptoms are improving and the risk to the public is low.
Mpox is a rare disease caused by infection with a virus that’s in the same family as the one that causes smallpox. It is endemic in parts of Africa, where people have been infected through bites from rodents or small animals.
Earlier this year, scientists reported the emergence of a new form of mpox in Africa that was spread through close contact including through sex.
More than 3,100 confirmed cases have been reported just since late September, according to the World Health Organization. The vast majority of them have been in three African countries – Burundi, Uganda, and the Democratic Republic of the Congo.
Since then, cases of travelers with the new mpox form have been reported in Germany, India, Kenya, Sweden, Thailand, Zimbabwe, and the United Kingdom.
Health officials earlier this month said the situation in Congo appears to be stabilizing. The Africa Centers for Disease Control and Prevention has estimated Congo needs at least 3 million mpox vaccines to stop the spread, and another 7 million vaccines for the rest of Africa.
The current outbreak is different from the 2022 global outbreak of mpox where gay and bisexual men made up the vast majority of cases.
