If you are looking to buy Gold and Silver with Bitcoin or an altcoin, Coaex is your #1 store with its competitive pricing, timely delivery and excellent customer service. Below you can find detailed information before buying gold bullion or silver bullion.
Before you buy gold and silver with Bitcoin
You should check the spot price of Gold or Silver, at first. There are several places on the internet to provide you most updated prices but “Kitco All Metal Quotes” is a great place to start. There, you can find live gold, silver, platinum, palladium and rhodium prices, check market availability, set price alerts and even get financial news and corporate reports.
Compare prices – How much premium am I going to pay for it?
“Premium” simply means the difference between the sale price and the spot price for any precious metal. This difference may vary from one store to another, basically due to operational expenses. We, at Coaex, apply the lowest possible premium by using cryptocoins’ advantages in money transactions, following demand-supply curves of cryptocoins and precious metals closely, thus keeping our operational expenses at optimal level.
Now, you have global spot prices in hand, which is gathered from Kitco. Let’s calculate the premium in gold based on it.
We currently sell gram gold bars ranging from 0.5 gram to 100 gram and silver bars ranging from 5 gram to 100 gram. The first thing to know is that you pay the lowest premium on larger weights. That’s simply because of labor/production cost. Let’s have a look at the “premium” term with some examples:
The spot price of gold is USD 1.292,00 per troy ounce, as of writing this article.
1 troy ounce of gold is equal to 31,1034768 gram. (notice that it’s not 28,35 gram – ounce weight in grams)
If you want to calculate how much premium you pay for gold, here’s the general formula:
Premium = Sale price of product – [(Spot price / 31,10) * (base weight of gold)]
For 1 gram gold, the premium = 50,99 – [(1292 / 31,10) * 1] = USD 9,45$ per gram
For 100 gram gold, the premium = 4255,99 – [(1292 / 31,10) * 100] = USD 101,65$ which is 1,01$ per gram
That means you save around 89% when you purchase 100 gram of gold instead of purchasing 1 gram of gold. The more weight in grams you buy, the less premium you pay for a gram of gold.
The benefits of buying gold or silver with Bitcoin or altcoins
- Low transaction fees in cryptocoins allow merchants to provide better prices compared to merchants accepting conventional payment methods such as Credit Cards and PayPal.
- Should you want to avoid personal income tax incurring from cryptocoin gains, you can simply buy gold or silver with Bitcoin and exchange it in your local market. That is totally legal.
- It is a great alternative for Fiat exchanges, considering that they are not able to provide funds to their customers in a timely manner. You can check delivery times for a number of countries, we had delivered before, from here.
Purchase Gold Bullion and Silver Bullion here