Over the past ten years, the United States economy has shown just how volatile it can be as the real estate and stock markets have risen and fallen. Investing in gold, silver, platinum, or palladium may be a better option for those looking to save for the future. Though prices can vary daily, buying bullion can be a great way to see modest increases in investments.

Bullion Basics

Bulk quantities of precious metals are known as bullion. Bullion is typically made from melted gold, platinum, silver, or palladium and cast into bars. Gold may also be available in the form of small grains. Bullion coins are cast from precious metal. Gold, silver, and platinum are the most common bullion coins available. These coins are minted in the United States, the UK, South Africa, Canada, Australia, China, Austria, and some other countries. Though they’re a form of legal tender, bullion coins are typically not used in commerce and are instead used as investments.

Many people consider buying bullion as a way to save for the future or as a form of financial insurance. As it’s a universal finite property, bullion is held by most central banks. Bullion can add stability to a financial portfolio should the market dip or other investments fail.

How Investing in Bullion Works

As with most investment opportunities, the idea behind bullion investments is to purchase when precious metal prices are low and sell when prices are high, which results in the highest investment gains for sellers. However, markets continually rise and fall, so it can be difficult to know the right time to buy or sell. Watch the market for a length of time and look at modest predictions before purchasing bullion.

How Much to Invest

Most experts recommend allocating between 5 and 15 percent of a financial portfolio to bullion. This diversifies a portfolio and can provide a stable income in the future should other investments dip. If you decide to include silver and gold in your portfolio, make sure to work with a reputable precious metals dealer, such as First National Bullion. San Diego residents rely on our professionalism and expertise when they’re ready to invest in gold and other precious metals.

Buying Bullion

There are many reputable websites where bullion can be purchased. These websites are operated by bullion brokerage firms. The bullion can then be shipped to a bank or vault for storage. This is known as an allocated bullion purchase. Shipping, insurance, and custodial and/or holding fees may apply to allocated bullion purchases. Some jewelry and precious coin stores may be an option for people interested in purchasing smaller amounts of precious metals in person. Always research brokerages and private dealers for customer ratings, security measures, and credit ratings before purchasing.

The Perth Mint Certificate Program allows for the purchase of gold certificates. The gold is stored in the Perth Mint vaults in Western Australia. This is the only government-backed precious metal certificate in the world. Though the certificate is backed and insured, it’s considered unallocated bullion, as the gold isn’t actually held by the purchaser. As there are no storage, holding, or insurance fees for certificates, many investors opt for this form to save money. 

When they’re looking for the best place to purchase gold and silver bullion, San Diego investors reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you discover how gold and silver can figure into your investment planning decisions. Give one of our experienced dealers a call 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.