How to Buy Gold Biscuits

Small, flat bars of stamped gold are often referred to as gold biscuits.

When one normally thinks of a gold bar, one usually visualizes gold in the shape of a large and heavy brick. Such gold bars certainly exist and are made by pouring molten gold into a mold. Another way of making gold bars is to stamp them out of a press, similar to the way coins are stamped. These stamped bars are much smaller and flatter and are known as "biscuits," although many gold sellers refer to all gold bars, including biscuits, simply as gold bars. Buying gold biscuits is the same as buying gold bars, although the premium you pay for biscuits is often higher per ounce than the premium you pay for larger bars.

Step 1

Study the precious metals market. Even though the price of gold varies minute-by-minute during the trading day, a thorough understanding of the gold market may help you develop a feel for when gold prices are depressed and when prices are at their peak.

Step 2

Contact several gold dealers in your area and on line. Ask for their price-per-ounce for gold biscuits. Get price quotes based on a premium you will have to pay over the spot price of gold. The spot price is the price currently being offered on the gold commodity market (the Comex). The premium you will have to pay represents the dealer's profit on the transaction and will vary from dealer to dealer.

Step 3

Add in the cost of shipping and insurance when getting quotes from on line sources. Such costs usually make it cheaper to buy locally.

Step 4

Advertise that you wish to buy gold biscuits from individuals. Advertise a price you are willing to pay based on the spot price of gold and based on the purity of the gold biscuits you are purchasing (the purity of the gold will be stamped on the biscuit). Never meet a potential gold seller at your home. Always meet in the lobby of a bank or at a coin dealer's showroom.

Step 5

Have the necessary cash or a credit card. Most gold transactions require cash or a credit card. Even certified and cashier's checks are no longer accepted for most transactions because they are easily forged.

Tip

Be careful when purchasing gold biscuits from private individuals, as it is possible to fake a gold biscuit. Also check to see that the edges of the biscuit show no signs of having been filed, which would mean a small amount of gold had been shaved off of the biscuit before selling it to you.

The premium (or profit) which a dealer charges is usually higher per ounce on small gold biscuits than it is for a larger, heavier gold bar.

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