If you stumbled across this article, odds are you’re looking into buying gold and silver as an investment. First things first, it’s important to note that the physical gold and silver market is not as straightforward as it sounds.
When it comes to investing in gold and silver, newcomers often find themselves getting lost in all the different options, be it minted bars, sovereign coins or limited edition coins. It’s easy to get overwhelmed, so don’t get discouraged right away!
So, what is the best way to buy gold and silver? Whether you’re new on the block or a veteran investor, here are five things you should know about the trick of the trade.
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1. How To Go About Buying Gold and Silver
Smart investors tend to analyze bullion options by the price and premium on the gold spot price. The premium, however, is only a small part of the deal. You can’t assume that you’ll always get the premium back after the sale — that’s a rookie mistake.
On the other hand, there are ruthless dealers out on the market. There are people that will take advantage of the fact that you’re new to investing, and they’ll take any opportunity to trick you. One of the most common tricks they’ll try to pull is getting you to buy collectibles with large premiums and no real value over time.
That’s why we’re here to help you out. It’s crucial to have an understanding of precious metals before diving into investments.
2. Make Sure You Know All Your Options
It’s no mystery that investors typically have specific goals in mind. It’s smart to consider your different options when it comes to buying silver or gold and how you can achieve the goals you’ve set your mind to.
There are several ways you can invest in precious metals, including:
- Buying bullion bars
- Buying bullion coins
- Buying through financial products like gold exchange-traded funds (ETFs)
Yep, you can buy gold and silver coins and you can buy gold and silver bars. However, it’s up to you and your personal goals to decide which is the right investment.
Buy Gold And Silver Coin
3. Be Aware of ETFs
An exchange-traded fund or ETF is similar to a mutual fund, except it’s traded like stocks.
Investing in gold and silver through ETFs seems convenient, but there are a few issues that you should be aware of before committing to an ETF.
Something you might not know is that you don’t actually own the metal if you invest in gold through an ETF. Within the fund, there is no claim on the gold.
What does it mean? Well, it means that you can’t take delivery of the metal if you ever need to.
So, it’s true — investors can get exposure to precious metals in two ways, and financial products like ETFs are one of them.
4. There Are Different Types of Coins — These Are The Best
It’s smart to diversify into gold bullion coins with different values. If you own a variety of gold coin sizes, you may get lucky if the gold rises to a higher value over time.
However, if you’re looking to invest more than $10,000 in gold and silver, look no further than these three gold coins:
Where To Buy Gold And Silver Safely
- U.S. Eagles
- U.S. Buffalos
- Canadian Maple Leafs
It’s guaranteed that you’ll be quoted the best bid if these coins are included because they have incredible liquidity. A little-known fact is that these coins actually represent more than 80% of the world’s bullion coin trading.
Make sure to be cautious and stay alert if dealers offer other gold bullion coins. They might be motivated by wider profit margins.
5. If You’re Buying Online, Make Sure It’s From a Legitimate Source
It’s easy to be swindled in the gold and silver market — especially over the internet. There are a lot of dealers who offer counterfeit metals. This poses an issue because since they’re fake, they won’t retain any real value. So, you want to make sure you’re looking in the right places.
If you want to buy gold and silver online, Investor Crate is a great option if you’re looking to diversify your collection.
According to their website, Investor Crate is a veteran-owned and operated Precious Metals subscription crate company based on dollar-cost. This service adds to your holdings every month, which also averages your physical Precious Metals Stack. The more you know!
Ready To Invest?
After reviewing these tips, you should have a decent knowledge of the market and be well on your way to buying gold and silver. You might find yourself looking for more business and investment tips along the way, which is totally okay!
Our blog is here to help. Check out more articles now!