Procurement of Precious Metals

J. Rotbart & Co. offers a one-stop solution for all your precious metals needs.

We provide:

Purchase investment grade precious metals safely, securely and discreetly through us. We source gold, silver, platinum and palladium bullion and coins from members and associates of the London Bullion Market Association (LBMA) and the London Platinum and Palladium Market (LPPM). We source newly minted bars and coins and deliver them directly to your preferred storage facility, office or home. Because we purchase bullion directly from refineries we can save you money and fulfil your order quickly and efficiently. As a boutique firm, we provide a personalized service, with each order tailored to your specific needs. We charge a single fee based on the items in, and the total value of, a purchase.

Our fees are very competitive and all-inclusive, so you will never pay more than the final agreed amount.

Buying Gold For First Time Investors

If you’ve purchased gold before, you’ve most likely purchased some form of jewelry. This guide addresses a different type of interest in buying precious metals: Buying gold as an investment from companies that deal in and sell precious metals.

There are only a limited number of companies that offer purchasing precious metal as a service, and since this is a considerable financial investment, it’s imperative you deal with a reputable gold dealer when purchasing.

This guide covers key points to consider, including:

  • Where to buy gold bars.
  • What to look out for in gold dealers.
  • How to keep gold safe and avoid pitfalls as a first time buyer.

Buying Gold? What You Need To Know

One of the key considerations you need to understand is just how valuable is gold at any given time.

Gold is quite unique in this sense. Unlike agricultural commodities and oil, its pricing isn’t affected exclusively by the rules of ‘supply and demand’, but also by feelings and sentiments – phenomena that are difficult to quantify.

Precious metal companies see their busiest trade at times of uncertainty or financial turbulence. Gold dealers get more inquiries and mints are driven to boost gold bar and coin production when uncertainty is on the rise. Take for example the current global geopolitical situation – it’s a prime example of the type of event that pushes gold prices up.

One of the primary reasons that gold prices behave this way is that it is seen as real currency, and although people will buy silver bullion or buy other precious metals, gold remains the strong favourite as a trusted store of value, considering its relatively low volatility and stable purchasing power.

Where to Buy Gold & What To Look Out For?

Before you ask ‘where to buy gold?’ as an investment, there are a few things to consider. At first, you might be attracted to the craftsmanship of gold coins that some precious metal companies offer; they’re portable and fairly easy to recognise as genuine. However, you should consider the fact that minting production comes at a cost and the high premium you pay all goes towards hiking-up the final price. It’s also important to note that when liquidating coins, the dealer will usually deduct a lower fee than when liquidating bars. It all depends on why you want to buy precious metals such as gold, what quantity and in what size pieces you should invest in.

Gold bars are the choice for many, so where to buy gold bars? You can buy gold in many sizes from gold dealers and precious metal companies, from one gram (so thin it’s referred to as a ‘wafer’) up to 400 ounces, and buying this size will get you more for your money as production costs are less. However, larger bars are more difficult to resell than 1 kg bars for example, and the smaller you go, the easier it will be for you to find buyers, should you decide to sell.

When purchasing larger gold bars, you’ll need an ‘assay’, which is an extra service and therefore more expense. By smelting, it certifies that your gold is genuine. Check that your gold has an authentic hallmark, of which there are many, but reputable gold dealers and precious metal companies should guide you through this process. Without a hallmark, you’ll find your otherwise very International liquid asset difficult to sell at a fair price.

Advice on Where to Buy Gold Bars

Buying from reputable gold dealers or precious metal companies is a must. There’s no such thing as a ‘bargain basement’ when it comes to buying gold, and choosing a gold dealer is no different to when you buy any high value item. Find the larger gold dealers and precious metal companies with the best reputations, they handle higher volumes and should therefore be able to give you a better price. Compare gold dealers, look at customer reviews, read about their other precious metal services and chose carefully. Search, ‘where to buy gold bars’ on the Internet; you may also want to try key phrases such as: ‘precious metal services’, ‘buy precious metals’, ‘gold dealers’ and ‘precious metal companies’ – It’s always a good idea to educate yourself before investing.

Compare commissions, payment fees and insurance premiums. Understand the gold dealer’s ‘buy back’ policy, promptness of delivery and customer-service reputation; all are important factors. A reputable gold dealer will deliver securely to your home, bank or chosen storage facility, something you should never attempt to do yourself with any appreciable amount of gold. However, try to avoid shipping gold coming in over long distances, as you’ll be footing the bill for extortionate carriage charges. Furthermore, ensure your gold dealer is not selling as an agent for larger gold dealers or precious metal companies as you’ll end up paying unnecessary commission charges.

Keeping Your Gold Safe

Fortunately, gold bars are easy to store but they must be kept secure, such as in a home safe or bank vault. Consider how quickly you’ll want to get hold of your gold; in your home, it’s there at all times, but in a bank it could take far longer to access. It largely depends on the current global situation, which is of course difficult to predict. The best decision is to do what you feel most comfortable with, however there are precious metal services that some gold dealers include, such as secure gold storage, which you should take into account.

One recommendation is keeping your gold in a vault that is a member of the London Bullion Market Association (LBMA). This keeps you within the LMBA ‘ecosystem’, providing you with more safety and less risk. Most of our clients find Singapore and Hong Kong to be safe for long-term storage with various precious metal companies.

J. Rotbart & Co. offers storage solutions at the Malca-Amit group’s global network of vaults, as a part of our precious metal services. To learn more about our storage solutions, click here.

Joshua Rotbart
Founder and managing director