Novice investors who want to branch out into physical commodities by purchasing gold or other precious metals often find themselves overwhelmed by the myriad of options between collectible coins, minted bars, and then there is also the option of purchasing gold jewelry. Read here how you should invest in precious metals and why with BullionVault.
The suggestion before taking the step to even reach out to a dealer (since there can be an unscrupulous one or two in the bunch) is to self-educate with a focus on what it is you have an interest in.
If you want to concentrate on gold coins, research these until you have sufficient understanding to make an informed decision. It is also essential to thoroughly look into the varied dealers specializing in precious metals, those licensed in the industry with a solid reputation and years of experience.
One comparable to BullionVault, a well-established firm with nearly two decades in the business and a solid following (more about BullionVault here.)
Companies like these put their clients’ best interests as a priority with the goal of helping them meet their future aspirations. Let us look at a few ways to prepare for a meeting with a precious metal dealer.
Table of Contents
Tips On Researching Precious Metals Before Committing to An Investment
A priority as someone new to purchasing precious metals is to make sure you research to find a licensed firm to work with who is well established in the industry with a solid following of clients and a reputation of putting their investors first in the way that BullionVault practices.
It is also essential to take the time to learn about precious metals, most specifically the one that you intend to focus your investment on. When you meet with a dealer, the conversation will be challenging if you do not become informed.
To supplement this, some firms like BullionVault provide educational literature for new investors to help guide them through their experience. In this way, you can have an intelligent conversation and make wise decisions. Some questions you want to focus on when engaging in research:
How should you invest in precious metals?
There are numerous ways to purchase physical gold, including bullion coins, bars, gold jewelry, or there are financial options, including ETFs or exchange-traded funds with gold as the focus. Go to https://www.entrepreneur.com/article/375575/ to learn why investing in precious metals is a good idea.
With gold ETFs, it is essential to pay attention to the fact that you will not own the metal, nor do you have claims to the product if there is a need. It will not be delivered to you.
The advantage of buying the physical commodity is you own it. It can be stored where you choose. It is to your benefit to select an entity that offers security and insurance like BullionVault to avoid the potential for theft and safety concerns.
Should you purchase silver or gold bullion
Gold and silver offer their own unique benefits, but the indication is that new investors will do better with gold as their investment of choice. The liquid market is more extensive, driven primarily by heavy jewelry and investment demands. The price is also less volatile for gold than it is for silver.
Silver has more significant ties to the economy since it offers more industrial uses making it an attractive option when the price point is low in the down cycles. It already provides a much lower cost than gold making it a more accessible investment choice for the new or the small client.
Which bullion coins are ideal for purchase?
The investor’s location will play a part in the ideal coins for their investment. For those located in Europe, Austrian Philharmonics plus silver or gold eagles are considered top choices. Clients in North America might consider the Canadian Maple Leaf or the American Eagle in either gold or silver.
Among the most traded coins worldwide is the South African Krugerrand holding gold of one troy ounce with 91.7% purity, deemed an excellent investor choice. Others include the English Britannia and the Australian Kangaroo, each boasting suitable liquid.
The suggestion to steer clear of as an investor is sovereign coins for lesser-known countries, along with commemorative sovereign special editions. These have a high price point but will resell for much less than the well-known options.
Investors should buy precious metals with an established dealer that offers a buy-store program such as BullionVault. It is unwise to take physical possession unless you feel there is an emergent need since this is unsafe and less secure.
Provided you achieve adequate information from these research guidelines, you should be prepared to consult with a licensed, reputable dealer who can get you started on your precious metal investment journey.