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How to cut gold investing costs now

There are multiple ways you may be able to cut the cost of a gold investment.  Getty Images/iStockphoto

Gold is a versatile commodity. It's commonly used in jewelry, dentistry, electronics and more. And, it's just as versatile in an investment portfolio. Not only does gold offer diversification value, but it's also a great way to hedge against risks like inflation and market corrections. 

Gold can also be a high-growth asset. That's seen in the price rise the metal has seen from January 1 ($2,063.73 per ounce) to May 20 ($2,439.98 per ounce), a more than 18% climb in less than six months. 

But, when you decide to invest in gold, it's important to start your investment at the best price possible. And, there are a multiple ways to cut the cost of investing in the commodity that investors should know now. Below, we'll break down three of them. 

Invest in gold with the help of leading gold dealers now

How to cut gold investing costs now

With gold currently trading at $2,334.74 per ounce, getting started with the commodity can be relatively expensive. But, there are ways to save as a gold investor. Here are a few ways to cut the cost of investing in gold right now:

Buy when the price is low

One of the best ways to cut the cost of investing in gold is to buy the commodity while the price is low. And, now is a great time to do just that. As recently as one month ago, gold was trading at $2,439.98 per ounce. Considering today's price of $2,334.74 per ounce, you could purchase the commodity at a more than 4% discount from its recent high price. 

But, you'll need to act quickly. Gold's price is cyclical - meaning gains in value are often followed by declines which are typically followed by gains. So, it's important to make your gold investment now, before prices go up again. 

Buy gold now before the price has a chance to rise

Use reputable gold companies

When you invest in gold, you have several options to consider in terms of where you'll buy it. There are multiple online and brick and mortar dealers. You can also purchase your gold at Walmart or Costco if you'd like to take the big box store approach. And, gold is commonly sold on ebay, Facebook Marketplace and other online listing websites. 

But, if you want the best prices - and to make sure that you're actually getting the quality of gold that you're paying for - it's important to work with reputable dealers. Dealers like American Hartford Gold, GoldCo Precious Metals and Rosland Capital don't just have a strong history in the gold investing industry, they may be able to offer lower prices than other smaller or less reputable dealers can. 

Consider used gold items

Most gold dealers repurchase the products they sell from their customers. And, when they do, they typically sell those used items at a discount compared to freshly minted bars and coins. However, it's important to note that the per-ounce value of gold doesn't change with the age, mint or style of the coins or bars you choose to purchase. 

So, by purchasing used gold items, you can enjoy a discount to their newer counterparts without having to absorb any loss in the value of the commodity you're purchasing. 

However, when purchasing used items from well-known gold dealers, you may not be able to choose the styles of the products you buy. For example, with JM Bullion, you can access discounted gold bars this way. But when you do, you'll be purchasing products marked "varied condition, any mint." So, you're simply purchasing gold by the ounce, rather than choosing designs and mints. 

The bottom line

It could be smart to add gold to your investment portfolio right now. And, it may be possible to do so at a discount. Follow the tips above to cut the cost of your gold investment. Make your gold investment now before the price has a chance to go up

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