Gold Buying Guide

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Definitions

What is a faulty gold coin ?

You have often heard about bad coins, but without really understanding what they are ? You are wondering in what form to buy gold ? You are in the right place to learn everything about coins mistakes! At Gold Union, our experts are happy to answer all your questions.

What is a touchstone ?

The origin of the touchstone dates back to antiquity. When used with acids, it allows the presence of gold to be recognized. This is a foolproof method to ensure that you are in the presence of this golden metal. But how exactly does it work and in what form does the touchstone appear ?

What is an ingot ?

The ingot is an alternative to gold bars and coins. It is located between the two, halfway between the one kilo gold bar and the investment coin. Bullion has more attractive prices and allows a greater number of investors to purchase gold. But then, what is an ingot ?

What is a noble metal ?

Noble metal, precious metal, semi-precious metal: metals are grouped into different categories, which are sometimes misused. A noble metal is indeed not just a beautiful, shiny and resistant metal. It must have certain physical and chemical characteristics to be defined as such. Let's take a closer look at what noble metals are and how they differ from precious metals and more common metals.

What is ethical gold ?

Gold mining is a practice that has been going on for centuries and has grown exponentially to satisfy global finance and the jewelry industry. Faced with this development, the gold industry is singled out for pollution, destruction of natural sites, energy consumption, exploitation of workers, very difficult working conditions, etc. This is why we hear more and more about ethical gold. Does it really exist ? How to know that you are buying ethical gold ? How to participate in a fairer and less harmful to the environment production of gold ? So many questions to which we bring our light!

What is gold vermeil ?

In the world of jewelry and goldsmithing, a wide variety of precious metals and precious stones are used. Among these materials combining quality and aesthetics, we find gold vermeil. Sometimes confused with gold plated, it nevertheless differs in its composition and its nobility. Here is everything you need to know about this metal in its own right, used to make rings, earrings, bracelets, etc.

What is the gold standard ?

Gold has had very varied uses throughout history, and still today. It is both a raw material and an investment product, and was for more than fifty years a standard for the currencies of many countries. This is called the gold standard. But what exactly did it consist of ? How was it set up and why did it disappear ? Here are some answers to enlighten you about this standard that reigned over the global economy.

What is recycled gold ?

What is the gold purchase certificate of authenticity ?

What does Lingot Good Delivery mean ?

If you have decided to invest in gold to diversify your investments, it is important to know everything about this precious metal. You've come to the right place for this, because at Gold Union we specialize in investing in gold! Here we explain to you what “Good Delivery” means.

What is dollar cost averaging ?

What is the premium on the purchase of a gold coin ?

A gold buying guide for secure and informed investments

Buy gold with confidence by understanding the essentials of purchasing precious metals. This guide covers regulations, tax implications, and best practices to help you make smart decisions.

Why invest in gold and silver?

Gold and silver remain trusted assets for preserving wealth. Their value often rises during economic uncertainty, making them a reliable choice for diversifying your portfolio. Investors appreciate their stability and the protection they offer against inflation.

When you buy gold, you gain access to a tangible asset with a long history of retaining worth. Silver, while more volatile, also provides opportunities for growth and industrial demand. Both metals are easy to liquidate, offering flexibility when you need to sell.

Understanding gold buying regulations in the US

Before purchasing, familiarize yourself with precious metals regulations. In the US, dealers must comply with federal and state laws to ensure transparency and security. Reputable sellers, like GoldUnion, follow strict guidelines to protect buyers.

Key points to consider:

Dealers must verify your identity for transactions over $10,000.
Some states have additional reporting requirements for large purchases.
Always request a receipt and certificate of authenticity for your records.

How capital gains tax gold affects your investment

Profits from selling gold or silver may be subject to capital gains tax. The IRS treats precious metals as collectibles, which can impact your tax rate. Short-term gains (held less than a year) are taxed as ordinary income, while long-term gains (held over a year) are taxed at a maximum rate of 28%.

To optimize your tax situation:

Keep detailed records of purchase prices and dates.
Consult a tax professional to understand your obligations.
Consider holding assets for over a year to benefit from lower tax rates.

Steps to buy gold and silver securely

Choose a trusted dealer

Select a dealer with a strong reputation and transparent pricing. Look for reviews, certifications, and clear policies on returns or buybacks.

Decide on the form of metal

Gold and silver are available as coins, bars, or rounds. Coins like the American Eagle or Canadian Maple Leaf are popular for their recognition and liquidity. Bars offer lower premiums but may require assay certificates for resale.

Verify the gold value

Check the gold value before purchasing. Prices fluctuate daily, so timing your buy can maximize your investment.

Complete the transaction

Pay securely using bank transfers, credit cards, or cash (within legal limits). Ensure your purchase includes proper documentation for authenticity and ownership.

Storing your precious metals

Storage options include:

Home safes: Convenient but require security measures.
Bank deposit boxes: Secure but may limit access.
Third-party vaults: Offer high security and insurance for larger holdings.

Insure your metals against theft or damage, especially if stored at home.

Selling your gold and silver

When selling, compare offers from multiple dealers to get the best price. Be aware of gold reporting requirements—dealers must report sales over certain thresholds to the IRS. Keep your purchase records to simplify the process and verify ownership.

Common mistakes to avoid

Ignoring fees: Some dealers charge premiums or hidden costs. Always ask for a breakdown.
Overlooking purity: Ensure your metals meet industry standards (e.g., 24K gold, .999 fine silver).
Skipping research: Understand the market and dealer reputation before committing.

FAQ : Gold Buying Guide

What documents do I need to buy gold?

You’ll need a government-issued ID for transactions over $10,000. Smaller purchases may only require basic identification.

Are there restrictions on how much gold I can buy?

No federal limits exist, but dealers may set their own policies. Large purchases may trigger gold reporting requirements.

How do I know if a dealer is legitimate?

Check for accreditations from organizations like the BBB or ICTA. Read customer reviews and verify their physical address.

Can I buy gold without paying sales tax?

Some states exempt bullion from sales tax. Research your local laws or ask your dealer for details.

What’s the best way to track the gold value?

Use reliable sources like gold value charts or financial news platforms for real-time updates.