How to Buy Gold Bullion in Monthly Installments

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Last Updated on: 12th October 2024, 03:55 pm

You may never have heard of a practical, affordable, and imminently sensible way of purchasing gold in monthly (or quarterly) installments. Yet this Monthly Gold Purchase program is well-established and highly regarded by the world gold community.

Why Buy Gold in Monthly Installments?

Buying gold in monthly installments or through a subscription plan can be an appealing option for many investors. Here's why we think this approach to accumulating gold can be beneficial:

1. Dollar-Cost Averaging (DCA)

• What It Is: DCA involves investing a fixed amount of money at regular intervals, regardless of the asset's price. In this case, you purchase gold regularly, whether the price is high or low.
• Why It Helps: This strategy reduces the impact of volatility on your overall investment. You’ll accumulate more gold when prices are low and less when prices are high, leading to a lower average cost over time Affordability and Accessibility
• Low Initial Commitment: Gold can be expensive, and not everyone has the capital to make large purchases at once. Subscription plans allow individuals to start accumulating gold with a small monthly contribution, sometimes as low as $50, $100 or $200. This makes gold more accessible to a broader audience .
• Costs Management: Instead of saving up to make one large gold purchase, you can spread out your investment over time, easing cash flow.

3. Hassle-Free Investing

• Automatic Investment: Subscription plans automate the process of buying gold. Once you set up your account, monthly purchases happen automatically. This removes the need for constant monitoring of gold prices and making decisions about the timing of your investments.
• No Market Timing: Timing the market is notoriously difficult, as any investor can tell you. By buying gold in installments, you don't have to worry about buying at the “wrong” time because your regular purchases average out your cost over time .

4. Consistency

• Regular Saving: A gold subscription plan encourages financial discipline by committing to regular purchases. It’s a “set it and forget it” strategy that helps people stay consistent with their long-term investment goals .

5. Protection Agation and Economic Instability

• Inflation Hedge: Gold is historically seen as a store of value and a hedge against inflation. Buying gold gradually can help preserve wealth, especially during times of economic uncertainty and currency devaluation .
• Economic Diversificationtion plans allow investors to diversify their portfolios into precious metals, protecting against the volatility of stocks or fiat currencies.

6. Flexibility

• No Long-Term Commitment: Many gold subscription plans allow investors to stop, change, or adjust their contributions as needed. If your financial situation changes, you can increase or decrease your monthly investments without penalties .

7. Fractional Gold Ownership

Some gold buying plans, like the one offered by My Digital Money, (a subsidiary of Noble Gold) allow you to accumulate fractional amounts of gold (e.g., fractions of an ounce), which would otherwise be challenging with large, one-time purchases. This helps investors with limited budgets get exposure to gold gradually .

8. Convenient Storage Solutions

• Freet Storage: Many gold installment programs offer secure storage options for your accumulated gold, often without extra costs until a certain value threshold is reached. This takes the hassle out of storing physical gold securely.

Companies That Offer Monthly Buying Programs

Ireland-based Gold Core first created the prototype of this form of gold investing with the GoldSaver account. This early venture into the world of periodic gold accumulation was for residents of not only the United States, but also of the Western-based world as well.

It permits American savers to have the possibility of incrementally building up a gold bullion investment through time and via regular savings of money that is converted into physical gold bullion. In this article, we consider all of the key elements of this program so that you can evaluate its possibilities for yourself.

There are now more than five different well-regarded gold companies which participate in this Monthly Gold Savings and Investment program these days. We will look at them in more detail later below. Though each of them has their own proprietary method, they more or less operate along similar lines and rules.

For example, most of them will allow you to participate without a substantial  minimum investment size for the monthly contributions you make. Some of them have a $100 minimum, which is nearly the same as no minimum for most investors. All of them will allow you to acquire gold, and some will allow you to purchase silver, or even platinum and palladium with the plans.

The way they work generally is that they have you select a coin to be your exclusive bullion option every month. If for example you choose an American Eagle one ounce bullion coin and contribute $300 per month toward this purchase, then every five months you will have saved enough money to buy one with a little money left over towards the next purchase.

It gets a bit tricky as the gold price is never stationary but instead constantly moving. In any case, your contribution remains fixed and continues to add up until you have enough to buy the coin at the then-current market price, usually according to the London Bullion price fixing of the day.

After the coin has been purchased in full, then many of the firms which participate in such a scheme will store it for you at no cost (until you reach a maximum value of $5,000 to $10,000) up to the point that you are ready to receive delivery of it. Some of the firms will ship your coins out to you at no charge once per year.

In terms of how much gold must be spent per period (usually monthly, bi-monthly, or quarterly), you set this yourself with the company, based on their minimum. You also are allowed to select the particular bullion product that you wish and to change this by giving the firm notice. Gold is always purchased at the then-current price and either held on your behalf or shipped out the next business day.

In all participating company cases, any fractions of a coin not purchased are carried to the subsequent month. Should you choose to cancel out your subscription, then all remaining fractions of the coin you have acquired are bought back by the company and promptly refunded to you. It is nearly always easy to change either your bullion product, your amount of periodic purchase, and your participation in these programs.

Recommended Gold Subscription Plans

Here are highly recommended, well-established, and greatly respected companies that offer the monthly gold savings budgeting plans:

1. Allenhouse Metals – This Florida-based gold IRA company recently launched its monthly subscription gold buying plan that allows investors to benefit from its “wholesale pricing” when signing up. 
2. Gold Core (Ireland) GoldSaver – the grandfather and creator of the monthly gold savings plan which they called simply GoldSaver accounts. They require a $100 per month minimum with no monthly maximum contribution. This program was groundbreaking as it buys the gold from the Perth Mint directly and then stores your gold in their fully secured and insured vaults in Western Australia. The only downside to their program is that you must commit to a 12 month term before you can cash out and take delivery of your gold.
3. Goldline Gold and Silver Accumulation Program – In the well known Goldline program, you have the additional advantage of selecting bullion in gold, silver, platinum, and/or palladium. They will third-party store your precious metals at a secure facility, which may involve extra storage and delivery costs. They also use the $100 minimum that Gold Core started. They give you the choices of monthly, bi-monthly, or quarterly for your savings contributions.
4. Northwest Territorial Mint Monthly Accumulation Program – This twist on the classic lets you limit your monthly contribution or select a certain number of bullion coins every month. They also rely on the $100 per month minimum. After meeting their minimum coin purchases, they will provide free shipping  to your home. You can also pay to receive every month's purchases in a shipment.
5. Money Metals Gold and Silver Savings Plan – Their monthly minimum is $150. You can also choose to have them buy a particular number of ounces of gold or silver for you. They give you a choice of four different days in a month on which to buy your precious metals, in case you think one particular day offers some sort of mysterious price advantage over another one.
6. Montana Rarities Monthly Silver Purchase Plan – This company goes exclusively with a silver monthly savings budgeting plan. You are allowed to choose from either 90 percent U.S. silver currency or .999 fine silver bullion with them. Their minimum is higher at $200 per month with an interesting monthly maximum amount of $500.
7. Old Hilliard Coin Club – This firm provides both gold and silver monthly bullion purchase plans and even an unusual and unique Morgan Dollar savings club. Their monthly minimum starts at $200 and goes up from there.