Buying Gold for the First Time: A Step by Step
Decide what the purchase is actually for before you decide what to buy. That one step prevents most first-time mistakes.
The most common first-time mistake is buying jewellery while thinking about investment, or buying bullion while wanting something to enjoy. Sort out which one you are doing and the rest follows.
Key takeaways
- Decide first whether you want an asset or an object you will wear.
- If it is an asset, buy bullion from an established dealer.
- If it is an object, buy solid, karat marked jewellery you will actually use.
- Set the budget before you shop, not while you are being sold to.
- Keep the receipt, the weight, the karat and a photograph.
What Vanhess does and does not do
Vanhess is a jewellery shop in Coquitlam, British Columbia. We sell solid gold jewellery. We do not sell bullion, bars, coins or wafers, we do not buy or broker investments, and we are not financial advisors, tax advisors or a bullion dealer. Everything on this page is general information to help you understand how gold is priced and valued. It is not financial, investment or tax advice. Speak to a licensed advisor or an accountant before making a decision about your money.
The order of operations
| Step | What to do |
|---|---|
| 1. Decide the purpose | An asset to hold, or a piece to wear? Be honest, because it decides everything else |
| 2. Pick the form | Asset means bars or coins. Wearing means solid, karat marked jewellery |
| 3. Set the budget | Before you shop. A number decided under sales pressure is not a budget |
| 4. Learn the two numbers | Weight and karat or purity. You need both for anything |
| 5. Check the seller | Physical address, trading history, and for bullion a published buy-back price |
| 6. Ask the questions | Weight, karat, solid or plated, buy-back, marks, on the receipt |
| 7. Keep records | Receipt, weight, karat, photographs, and an appraisal if significant |
If it is an asset
Buy bullion, from an established dealer, in a size you could sell part of if you needed to. One troy ounce is the most widely traded retail size and the easiest to resell. Read the tax section first, because the treatment of bullion and jewellery in Canada is genuinely different and it affects what you pay.
If it is something to wear
Buy solid gold, karat marked, in a piece you will actually put on. The metal floor is a bonus, not the reason. Ask for the gram weight so you know what that floor is, choose 14K or 18K for durability, and prefer plainer, heavier construction if you want more of the price to be metal.
Be careful
Do not let anyone sell you jewellery as an investment. It is not one, and the phrase investment grade has no regulatory meaning when applied to jewellery.
Frequently Asked Questions
How do I start buying gold?
Decide first whether you want gold as an asset or as something to wear, because the two lead to completely different purchases. For an asset, buy bullion from an established dealer, most commonly in one troy ounce units. For wearing, buy solid, karat marked jewellery and ask for the gram weight.
How much gold should I buy first?
That depends on your circumstances and we are not licensed to advise on it. What we can say is to set the budget before you start shopping rather than during a sales conversation, and to buy in units small enough that you could sell part of the holding if you needed to.
What records should I keep after buying gold?
The receipt showing weight and karat or purity, photographs of the item, and for anything significant a written appraisal. Those records matter for insurance, for proving prior ownership at a border, and for calculating a gain if you ever sell.
Read next
Solid gold jewellery from our Coquitlam shop
Every piece is solid gold and karat marked, sold to be worn. We do not sell bullion.
14KClassic Bangle
A plain solid bangle: most of what you pay for is metal you can weigh.
$800.00
14KByzantine Emperor Flat Chain
A heavy flat link chain, the classic hold-its-weight piece.
$900.00
14KClassic Stacking Band
A plain stacking band with no stones to complicate a resale.
$380.00Vanhess sells gold jewellery. We do not sell bullion, bars or coins, and nothing here is financial or tax advice.