Venturing into the business of buying and selling gold and silver can be stress-free, enjoyable, and profitable. Due to their ability to maintain their value even during economic distress, investing in gold and silver bullion is a smart decision. However, like any investment, there are specific nuances that you should understand to streamline the process of purchasing, selling, and holding these precious metals. For instance, mastering the gold market trends, distinct strategies for purchasing gold and silver coins, and values of these precious metals makes you an informed investor. Here is a guide to help you buy silver.
- Your bullion dealer should have excellent reputation and due diligence
High level of reputation is a crucial consideration when you are dealing with a precious metal dealer. Ensure the company that you decide to buy or sell your gold and silver to has a clean reputation. Google search your prospective dealer and check the comments, complaints, and reviews left by previous clients. Leverage your discerning eye to identify genuine reviews or comments written by actual users.
- Find out the real cost per ounce of gold and silver
The prices of precious metals fluctuate on a daily basis. Therefore, you should check the spot price of that day before making any transaction. Smaller gold bars such as, a quarter, and a tenth ounce, are expensive compared to one ounce bars. Additionally, the retail price of Canadian Maple Leaf as well as American Eagle bullion coins is higher than a cast gold bar due to minting costs.
- Avoid rare coins
When purchasing rare coins, you need a high level of expertise and diligence. Two coins may resemble each other, but they have entirely different grades. This difference can account for thousands of dollars. You should hire a professional grader and acquire a certificate of authenticity when purchasing rare coins – an arduous task for most investors. The professional graders examine the physical condition of a coin before assigning it a grade. For the bullion investor looking for a storage of wealth, it’s recommended to avoid buying these coins.
- Know the fees and commissions associated with buying precious metals
Conduct thorough online research and compare fees and commissions among dealers. Visit precious metal exchange platforms like Kitco.com and goldseek.com and check the spot price. For example, one ounce of gold coins such as Maple Leaf will attract a retail commission of approximately five or six percent compared to a cast bar or two or three percent. These mark ups are also relative on top of the spot price.
- Understand the risks of investing in gold and silver
If you are planning to purchase silver and gold bullion for investment purpose, you should consider spending a substantial amount of time building your expertise in precious metals before purchasing them. Apart from making hasty purchases, uninformed buyers can overpay and buy coins at a premium or buy gold bullion when the market is rising rather than falling. Just like other investments, there are no assurances. It is difficult to predict with confidence that silver and gold prices will stay at their present levels or continue to rise.
The prices of gold and silver have been at record levels in the recent past, increasing interest in purchasing and selling gold and silver coins. However, you should resist the urge to make impulse purchases when you buy silver as you might be over paying for a particular silver product.