Common Mistakes to Avoid when Owning Precious Metals

Precious metals are a smart investment. However, there are some missteps owners of precious metals like gold and silver make. For instance, you may rely on unsafe methods of ownership once you have your precious metals at home or in a storage facility. We go over some of the more common ones below.

Storage at Home

Storing precious metals at home may seem like a good idea. However, doing so increases the risk of theft. Even if you don’t tell other people you have gold, platinum, or silver stashed in your home, a robber may force you to turn over your precious metals. Or they may be stolen by people you only occasionally let into your home, like contractors. Instead, store your precious metals in a reliable storage facility that specializes in precious metals storage, such as one of the trusted First National Depositories at First National Bullion, the best place to buy gold in Scottsdale. Storing your precious metals at home may also reduce their value because of the risk of theft.

Lack of Insurance

Precious metals normally need to be insured—or they should be, at least—in case they’re damaged or stolen. Insurance rates are usually based on the type of precious metals you own and the value of the metals. You may be asked to have your precious metals appraised so the insurance provider can offer a fair rate for your monthly premiums.

Ignoring Authenticity & Verification

As a precious metals owner, it’s important to invest in well-recognized bullion coins or bars with proper authentication. Counterfeiting is more common than you may realize. Counterfeit precious metals can undermine the value of your investment, so make sure to purchase your precious metals from reputable sellers.

Not Storing Them Properly

Improper storage in your home can also be an issue. If precious metals aren’t stored properly, they can rust or develop an unappealing coating if they aren’t susceptible to rusting. While it’s possible to have precious metals cleaned and restored, this process can be costly if you need to do it repeatedly. Store your precious metals in a fireproof safe if you insist on keeping them at home.

Buying Just One Kind of Precious Metal

This is unsafe because the precious metals market is unpredictable. If you invest in just one precious metal like silver, for example, you may find yourself losing money on your initial investment if silver prices go down. Instead, it’s wise to own a variety of precious metals.

Not Paying Attention to the Markets

Lastly, it’s important for owners of precious metals to stay safe with regard to investment by paying attention to the precious metals markets. This makes your investments safer, since you’ll know when to sell and when to buy more precious metals in the future. If you’re unsure of how to use the precious metals markets or how to determine when it's safe to sell, consult with a precious metals expert or a financial consultant specializing in precious metals. 

Whether they’re looking for expert advice on any aspects of owning precious metals or they’re looking for the best Scottsdale gold and bullion, collectors should work with trustworthy experts who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to invest in precious metals, including gold, silver, platinum, and palladium. Give us a call today.

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.