Gold Bar Auctions Online
How To Purchase A Genuine Gold Bar In Auction
There are different forms of gold. But nothing beats buying physical gold you can touch, feel and be sure it is safely locked in a vault that only you have access to. A lot of people own gold in different forms like jewellery, coins, bullion bars, etc. These forms are more reassuring than buying gold in the form of intangible investments that reflect only figures e.g., gold exchange-traded funds (ETFs).
Gold bullion bars are the best hold investment types because it is more about quality than form. Gold bullion bars are also known as Physical gold. Other forms of gold might be pleasing to the eye whereas gold bullion bars are just plain normal. Every investor, both private, public, government and organisational has favoured gold bullion bars to any other form including coins.
Golds used to be quite different to purchase earlier because of some market limitations. But currently, there are so many ways to purchase gold ranging from online stores, to a gold bar auction, etc.
What Is A Gold Bar Auction?
Auctions are one of the oldest ways people sell their properties to interested parties. In an auction system, there is buying and selling goods or services by offering them for bidding. The bidding process consists of people bidding and stating the price they will like to purchase the item. After, the item on sale will be sold to the highest bidder. An auction is said to be successful if the vendor accepts the highest bid offered and the buyer and seller exchange the goods and payment with one another.
Understanding The Terminology Involved In Auction
Having an adequate knowledge of the terminologies used during auction will enable a stress free time. It will also assist the buyer to know the right decisions when due.
- This is a trained professional overseeing the auction process. The auctioneer starts the sale by describing the item and starting the bidding. Once the first bid is made, others may begin to make higher bids. The bidders may be present or not. They sometimes will be in the salesroom, on the phone or online via the Internet. The auctioneer can also represent absentees by making bids on their behalf. Then, rule the auction as complete as soon as a higher bid is not made, the auctioneer announces, “sold.” If there is no bidding on an item, the auctioneer signifies this with a “pass.”
- In an offline auction, there is a printed catalogue with a list of all the items in an upcoming auction. In this current era, since auctions have gone digital, 100% online, there is still a store showing a list of items. It is still referred to as an auction catalogue.
- Before an item is on display, there is a process of evaluation. Each item must have been evaluated by a professional for investigative research to determine the value of the item. There are factors that are used to determine valuation. These factors include provenance, history, artist, what the item is made of, and many other factors.
- This is an item offered at auction. It showcases images, descriptions and a minimum bid amount.
- This is an amount of money that a potential buyer is willing to pay for an item.
- This is the increment of a bid by an auctioneer.
Sellers Commission Fee
- A fee paid by the consignor. A consignor is a person who wishes to sell something at auction. This fee is paid for the research, valuation, and for promotions.
- This price is the winning bid of a lot at auction.
- This can also be called an auctioneer’s hammer. Once the hammer is hit, it symbolises the end of the bidding.
- One last chance to bid before the auctioneer closes bidding on a lot
- The auction house adds fees known as the buyer’s premium which refers to a percentage charged by the auction house added to the hammer price.
- It is also an exhibition. It is mostly relevant for offline auctions.
Before the auction begins, you must show your intention by registering before the auction date. The process is quite easy; be prepared to have your name, address, phone number, and payment information before the deal date.
For online auctions, there are multiple payment options to pick from. Both debit, credit, and others are accepted. The best part is that all charges will be inactive until the buyer bids and win the bid. All it takes is approval from the auctioneer.
Different Types Of bids At Online Gold Bar Auctions
You can make two types of bids at an online auction. The first type is a pre-bid; this is the set amount you bid before the fixed date of the live online auction. Other people can bid against you with their pre-bids during this period.
On auction day, once the auction starts, there might either be a live online auction in the form of video or audio. Then the auctioneers begin the process with an explanation. Tgen, from there on, the bidding has begun. For the live bidders, bidding is done by pressing a command on your computer or phone. The bidding process goes on and the auctioneer hits the gavel to declare the lot sold. The highest bidder wins while an item isn’t sold, it’s declared a pass.
Mistakes To Avoid In Online Auctions Gold Bar Auction
In Order to enjoy all the goodness of online auctions, these are the set of rules to help avoid mistakes. They are:
The importance of research can not be exempted, especially if you are bidding on an item. The auction house has already come up with the valuation, but in order to make an informed decision, you should do your own research before deciding how much you’re willing to pay for an item.
- Don’t start with your maximum bid.
- Start your bidding process smart and small with the minimum amount you’re willing to pay.
- Never make a bid that you’re not willing to pay.
- Read the auction houses’ terms and conditions
- Do not be an irrational decision maker; have fun with the process.
- Do not believe everything you see.
- Ensure the auction house has a good reputation and reviews.
What To Look Out For Wh
en Buying At An Auction?
- Ensure what you want us what you get. A good gold is at its purest form. Karat is the unit of purity measurement of gold. For investment purposes, 24 karats upward purity is best.
- It is also important to know the refinery from where the gold bar was refined. If a gold bar which was refined at popular refineries, it ensures it is of highest level purity.
- Inquire about the weight and purity tolerance level (variation in purity) before purchase.
- Fineness is a quality that shows the purity of precious metals by parts per thousand rather than karats. For example, the fineness level of a gold with a fineness level of 999.9 parts per thousand is stated as 999.9.
- If you decide to invest in lower denominations, it helps to maintain liquidity when you need it.
- When going online to buy from an auction house, it’s best to look out for a Hallmark certification.
- After getting your gold from the online auction house, keep it in the package. It will help retain its quality.
Conclusively, buying gold bars from auctions are very interesting and less time consuming and cost effective. Ensure you read every part of the terms and conditions.