The bullion market is similar to any other financial market in that commodities are bought and sold. While there are many types of precious metals in solid form that can be in high demand at one time or another, the bullion market is primarily focused on gold and silver trading. If you’re new to this market, here’s what the experts in precious metals from First National Bullion, the gold dealers San Diego collectors trust for high-quality service and industry knowledge, suggest you need to know about trading.
Trade with Bullion Dealers
One option for trading in the bullion markets is to work with a dealer. You can do this in person or with dealers who buy and sell online. Keep in mind that if you’re selling bullion back to the dealer you originally purchased it from, you might not get back what you paid for it. However, you can successfully buy and sell bullion this way and still make a profit yourself if you pay attention to the current state of the market, which is our next tip.
Get to Know the Bullion Markets
The more knowledgeable you are about the bullion market before you dive in, the more likely you are to have a good trading experience. Take some time to understand the current values of gold and silver. Also, be aware of what typically moves the market. Common factors include:
• Inflation and deflation
• Supply and demand for your preferred precious metals
• Greed, fear, and the current economic climat
Take a Look at Long-Term/Short-Term Trends
As you do your research on the bullion markets, check out trends pertaining to your preferred bullion. For instance, gold tends to have long periods of stability and short-term fluctuations. If you trade wisely, it’s entirely possible to buy gold or silver at a decent price during downward spikes and make a tidy profit selling it back when demand drives prices back up.
Go Virtual with Trading Software
Another option for trading is to use trading software. This can be appealing if you prefer not to go through the hassle of receiving physical bullion only to have to package it back up and ship it. Reputable companies that do this type of trading typically back virtual transactions with real bullion, so there’s some degree of security.
Consider a Mix of Physical & Virtual Trading
With virtual trading, you’ll only be dealing with raw materials, not premium coins or bars. This means your trades will be based on raw value only. You won’t be able to speculate on rare or collectible pieces—something many bullion collectors enjoy doing. For this reason, it’s common for investors to trade both physical and virtual precious metals. Plus, a well-rounded portfolio will allow you to enjoy the best of both worlds as you buy and sell.
Start Small & Do What’s Comfortable for You
It doesn’t have to be all or nothing with bullion trading. If you’re just getting started, begin with smaller trades. This will give you a chance to get a feel for the market and how it works. You can always adjust your trading preferences and habits as you gain more confidence.
For information on any aspect of buying, selling, and owning precious metals, call on the experts at First National Bullion and Coin. If you’re looking to buy San Diego gold and bullion, you can trust our reputable dealers. We’re a boutique precious metals firm with experienced professionals, and we work hard to keep our investors informed with the most up-to-date market news. If you’re looking to add precious metals to your portfolio, call us today at 858-666-6570.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.