How to buy gold in monthly installments (avoid subscription services)

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Buying gold in monthly installments is a common strategy used by gold investors. It allows you to plan your purchases over a long period. There is a value based on the constant buildup of more metal as you go along.

This approach has several advantages, but there are also pitfalls associated with some gold subscription services.

A range of gold bars in the form of coins and bars.

Below I will tell you how to buy gold in monthly installments. We will also discuss the pros and cons of structuring your gold purchases in advance.

Develop a gold savings plan

Developing an action plan is an essential step before embarking on any investment decision. Even smart investors will face difficulties if they neglect to plan ahead. This is true for bonds and the stock market, and it also applies to gold.

There are two options for structuring your periodic gold accumulation. You can either sign up for a subscription program or just do the same yourself (without paying extra for the service). Despite what you expected, you can invest in gold on a monthly basis without anyone’s help. In fact, you can buy gold in installments of any length.

Whichever option you choose, the goal is the same: gradually accumulate more gold. It should absolutely be considered as a form of savings plan. Either way, one of the main benefits of a gold savings plan is that you tightly budget your investment dollars.

If you buy the gold yourself, this can be done through a self-directed IRA (often referred to as a Gold IRA). Investing in gold through your retirement account, however, places a limit on your annual contribution ($ 5,000 maximum) to the United States. You still have the option of buying more than $ 5,000 of silver and gold per year outside of your IRA.

Consider the average cost in dollars

Averaging dollar cost is a fairly straightforward strategy. You buy a fixed dollar amount, or a fixed amount, of gold at regular intervals. Purchases can be weekly, monthly, quarterly, or any other consistent period.

gold and dollar balance

Gold and the US dollar share a strong inverse relationship.

Regardless of the price of gold, you would buy the same amount of gold in each period. As a result, you’ll save money (or get more gold by weight) when prices drop. When the prices go up, you don’t spend the extra money.

The main idea here is to avoid trying to perfectly time the market, which is futile for any investor. Instead, planning your gold purchases in fixed installments will average the ups and downs of fluctuating prices.

Sticking to a regular shopping schedule has several other benefits for your personal finances:

  • It helps mitigate price volatility so that you can build a precious metal stack gradually and consistently.
  • It helps to remove emotions and impulses from the investment process.
  • Above all, it achieves the long term goal of accumulating metals while on budget.

Of course, you must commit to the monthly payments, from the first payment to the last month or due date.

Alternative gold buying strategy: buy the dips

Buying dips is a slightly more dynamic strategy than the average dollar cost. It is often used with stocks but can just as easily be applied to any investment in gold.

When you choose to buy the dips, you are making a buy gold whenever the price drops below a certain level. This can be a specific dollar amount, or when the price of gold is down by a certain percentage.

Depending on market activity, your purchase price may change every month. The idea here is always to accumulate gold in periodic installments. But you are actually buying less gold at higher prices and you are buying more at lower prices.

There’s a good reason buying dips is so popular. In an overwhelming number of cases, this is a very profitable strategy. It can save you money in the long run, but the main downside to dip-buying is that it depends on the vagaries of the market. If the price of gold goes up, for example, you might have to wait weeks before your next buying opportunity.

In most cases, this scheme allows the customer to choose their payment method. It can be a debit card, credit card, check, money order, or wire transfer direct from the bank account holder. Please note that if you buy gold with a credit card you may be charged additional interest on payments. Conversely, the seller can offer a special discount for payments made by bank transfer.

Pros and Cons of Gold Subscription Services

You may have seen companies or services that offer gold buying plans (or “gold programs”). They require a subscription, and the rest is taken care of for you. The investor signs up primarily for financing. Subscribed members can make advance payments and exchange the credit for gold. They can choose to wait to physically receive their order upon redemption.

The biggest advantage of these plans is that they automate the investment process. This ensures that you will never forget to buy gold. You can ‘set it and forget it’. The subscription will automatically divide your purchase into monthly installments (or any number of easy installments). Some companies may even allow you to pay later.

However, there are several red flags with Gold membership plans that you should be aware of.

Young man preferring gold bullion to cash

Gold bugs generally prefer to own physical metal rather than silver.

Perhaps the main problem is that gold subscriptions just cost more. There is an additional charge (a “premium”) associated with the service under their terms and conditions. This is reminiscent of having to go through a broker to buy a stock. Over time, you will pay more per ounce of gold than shopping on your own.

Lack of flexibility is another problem. While some investors prefer a strategy that can be placed on autopilot, this does not allow you to buy the dips. Your subscription will not be able to take advantage of the price movement in the gold market.

These plans also generally do not allow you to choose specific investment products. Most sellers won’t let you ask for specific gold coins or silver coins. You are limited to gold products available in the seller’s inventory or on company reserves. If you are specifically looking for something like South African Krugerrand Gold Coins or PAMP Suisse Gold Bars, you might be out of luck.

How you can buy gold coins in installments

You will see many touted gold buying plans, but you should beware of such offers. One of the pillars of investing in precious metals is having freedom and control over your assets.

Planning and structuring your gold buying plan is a smart move, but you’d better manage the task yourself and avoid the hidden costs of any gold subscription.

Gainesville Coins has decades of history as a trusted gold bullion dealer. In addition to our luxury showroom, you can buy precious metals directly from our website. Follow the links below and please check out all of our silver and gold for sale. If you have any questions, please contact our customer service representatives at (813) 482-9300 or email us at [email protected]

(Remember, Gainesville Coins does not sell or buy gold or scrap jewelry.)

Gold bars for sale from Gainesville coins

Silver bars for sale from Gainesville coins


More information and educational buying guides on gold and silver from the authors of Gainesville Coins:

Investing in gold: what you need to know

Investing in Silver: Guide for 2021

Best Place to Buy Money: Low Prices from a Trusted Reseller

Best Way to Buy Money: Guide to Buying Physical Money

6 gold buying mistakes to avoid

How to Buy Platinum: Platinum Buyer’s Guide

How to invest in precious metals like a pro


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