Buying gold for the first time can feel overwhelming. With spot prices, premiums, different product types, and dozens of dealers to choose from, where do you even start? This guide walks you through everything you need to know to make your first gold purchase with confidence.
In This Guide
1. Why Buy Physical Gold?
Gold has been a store of value for over 5,000 years. While there are many ways to invest in gold (ETFs, mining stocks, futures), physical gold offers unique benefits:
- No counterparty risk: Physical gold has no default risk. It's not someone else's liability.
- Privacy: Cash purchases under $10,000 don't require reporting in most cases.
- Tangible asset: You can hold it, see it, and it will always have intrinsic value.
- Portfolio insurance: Gold typically moves opposite to stocks during market crashes.
- Inflation hedge: Gold tends to maintain purchasing power over long periods.
Pro tip: Most financial advisors recommend allocating 5-10% of your portfolio to precious metals as a hedge against economic uncertainty.
2. Gold Coins vs Gold Bars: Which Should You Buy?
The two main forms of gold bullion are coins and bars. Each has advantages depending on your goals.
Gold Coins
Government-minted coins like the American Gold Eagle, Canadian Gold Maple Leaf, and South African Krugerrand are the most popular choice for individual investors.
- Pros: Highly recognizable, easy to sell, legal tender status, divisible sizes (1 oz, 1/2 oz, 1/4 oz, 1/10 oz)
- Cons: Higher premiums than bars (typically 4-8% over spot)
- Best for: Beginners, those who may need to sell in small amounts, collectors
Gold Bars
Gold bars are produced by private mints and refiners. They come in sizes from 1 gram to 400 oz (the "Good Delivery" bars held by central banks).
- Pros: Lower premiums (1-3% over spot for larger bars), more gold per dollar
- Cons: Less recognizable than coins, may require assay to sell, less liquid
- Best for: Experienced investors, larger purchases, long-term holding
Our Recommendation for Beginners
Start with 1 oz government-minted coins (Eagles, Maple Leafs, or Britannias). They're easy to authenticate, universally recognized, and easy to sell anywhere in the world.
3. Understanding Premiums
The premium is the amount you pay above the spot price of gold. If gold spot is $2,000/oz and you pay $2,080 for a coin, your premium is $80 or 4%.
Premiums cover:
- Minting/fabrication costs
- Dealer markup and operating costs
- Supply and demand (premiums spike during crises)
- Shipping and insurance
Typical Premiums (2026)
| Product | Premium Range |
|---|---|
| 1 oz Gold Bar (Generic) | 1.5-3% |
| 1 oz Gold Bar (PAMP/Credit Suisse) | 2.5-4% |
| American Gold Eagle 1 oz | 4-6% |
| Canadian Gold Maple Leaf 1 oz | 3.5-5% |
| 1/10 oz Gold Coins | 8-15% |
Key insight: You pay the premium when you buy, but you typically don't get it back when you sell. Focus on finding the lowest premiums to maximize your investment.
4. Best Gold Products for Beginners
For your first gold purchase, stick to these universally recognized products:
American Gold Eagle
The most recognized gold coin in the US. 91.67% pure gold (22 karat) with copper and silver for durability.
Premium: ~5%
Canadian Gold Maple Leaf
99.99% pure gold, one of the purest coins available. Excellent security features.
Premium: ~4%
South African Krugerrand
The original modern gold bullion coin (since 1967). 91.67% gold, very liquid worldwide.
Premium: ~4%
1 oz Gold Bar (PAMP/Valcambi)
Lowest premiums for pure gold. PAMP and Valcambi are the most trusted refiners.
Premium: ~2.5%
5. Finding Reputable Dealers
Only buy from established, reputable dealers. Here's what to look for:
- Years in business: Look for dealers with 10+ years of operation
- Reviews: Check BBB rating, Trustpilot, and Google reviews
- Industry memberships: Look for PNG (Professional Numismatists Guild) or ICTA membership
- Transparent pricing: Prices should be clearly displayed with premiums over spot
- Secure shipping: Fully insured, discreet packaging
Top Online Gold Dealers (2026)
- APMEX - Largest selection, slightly higher premiums
- JM Bullion - Competitive prices, free shipping over $199
- SD Bullion - Often lowest premiums, great for bulk buyers
- Bold Precious Metals - Low prices, excellent for silver too
- Monument Metals - Good prices, strong customer service
Use FindBullion: We compare prices across all major dealers so you can find the lowest premium on every product. Compare prices now →
6. Payment Methods & Pricing
The price you pay depends on how you pay. Most dealers offer different prices based on payment method:
| Payment Method | Price Impact | Notes |
|---|---|---|
| Bank Wire | Lowest price | May have wire fee ($15-30) |
| Check/eCheck | Lowest price | Slower processing (3-10 days) |
| Cryptocurrency | Same as wire | Many dealers accept BTC, ETH |
| Credit Card | +2-4% higher | Convenience, buyer protection |
| PayPal | +2-3% higher | Not all dealers accept |
First-time buyer tip: For your first purchase, using a credit card might be worth the extra 3% for the buyer protection and chargeback rights. Once you trust a dealer, switch to wire/check for savings.
7. Storing Your Gold
Once you own gold, you need to store it securely. Your main options:
Home Storage
- Pros: Immediate access, no ongoing fees, complete privacy
- Cons: Theft risk, may void homeowner's insurance, fire risk
- Best practice: Use a quality safe (minimum TL-15 rated), bolt it down, don't tell anyone
Bank Safe Deposit Box
- Pros: Secure, relatively affordable ($50-300/year)
- Cons: Limited access hours, not insured by bank, subject to bank holidays
Private Vault Storage
- Pros: Maximum security, insurance available, 24/7 access at some facilities
- Cons: Annual fees (0.5-1% of value), requires trust in third party
- Options: Brink's, Delaware Depository, many dealer-affiliated vaults
8. Common Mistakes to Avoid
Buying Numismatic Coins
Rare or collectible coins carry huge premiums (50-200%+) based on rarity, not gold content. Stick to bullion coins for investment purposes.
Paying Too Much Premium
Always compare prices across dealers. A 2% difference on a $5,000 purchase is $100 in your pocket.
Buying from Unknown Sellers
Avoid eBay, Craigslist, and unknown websites. Counterfeits are rampant. Stick to established dealers.
Telling Everyone You Own Gold
Keep your holdings private. The fewer people who know, the lower your theft risk.
Buying Fractional Gold First
1/10 oz coins have premiums of 10-15%. Save up for 1 oz pieces for better value.
Ready to Buy Your First Gold?
You now have everything you need to make an informed first gold purchase. To summarize:
- Start with 1 oz coins (Eagles, Maple Leafs, or Krugerrands)
- Compare prices across multiple reputable dealers
- Pay by wire or check for the lowest prices
- Store securely and keep your holdings private
Compare Gold Prices Now
FindBullion compares prices across all major US dealers so you can find the lowest premiums.
View Gold Prices