Gold and silver are the forms of bullion that often come to mind when precious metals are discussed. If you have plans to buy gold and/or silver bullion in the near future, there are some basics you’ll want to keep in mind as you explore your options. We summarize the essentials below by presenting the ten commandments for buying gold and silver bullion.
1. Take Delivery of Your Gold/Silver Bullion
Even if you plan to store your gold and silver bullion remotely, always take delivery of what you purchase. Doing so gives you a chance to verify the quality and authenticity of what you bought.
2. Try to Avoid Buying at a Premium
Gold and silver bullion are sometimes offered at prices higher than what they’re actually worth and beyond a reasonable markup. This is why it’s important to do your homework first to get a general idea of what a fair price is. When they’re not sure about fair prices for bullion, including gold and silver bars, Carlsbad residents should seek the advice of an experienced, reputable precious metals dealer.
3. Purchase Bullion for Business
It’s perfectly fine to purchase coins and other forms of currency for “fun” (e.g., collecting, sentimental value). Just don’t do this with bullion. It’s best to buy it for business-related reasons, which can include a desire to diversify or enhance your portfolio.
4. Start with Silver First
Silver serves the same purpose as gold, but it tends to be cheaper. Buying silver first will give you a chance to get a feel for this type of investing before you add gold bullion to the mix.
5. Start Small with Gold
If you do move on to gold, start small so you can get a better idea of how this type of investment fits into your budget and lines up with your goals. Once you get comfortable with buying and managing smaller gold investments, you can always consider larger purchases.
6. Don’t Buy Any Gold/Silver Bullion Forms You Don’t Understand
Rare or exotic silver and gold coins can be appealing and even have decent value. However, if you’re unfamiliar with certain types of gold and silver bullion, it’s best to stick with what you know when making your initial purchases.
7. Check Out/Know Your Dealer
There are plenty of places to buy gold and silver. That said, you’ll be better off if you stick with a reputable dealer or precious metals firm. Take time to do some research so you’ll feel confident and comfortable with your preferred dealer.
8. Disclose Purchases to the Government
If you’re not properly disclosing your gold and silver purchases, there will always be the risk of having those purchases confiscated by the government. While circumstances can certainly vary, you should always be forthcoming about your assets.
9. Don’t Swap Coins for $20 U.S. Gold Pieces
There’s nothing wrong with swapping bullion if what you’re getting in exchange is of equal value. However, the problem with $20 U.S. gold pieces is twofold:
• There’s less than an ounce of gold in each piece
• These coins typically see a lot of use and circulation, so they often have marks and other signs of wear that could affect value
10. Keep Things Legal
Lastly, always be mindful of any rules, regulations, and laws that apply to gold and silver bullion purchases. This is another reason to work with reputable dealers, since they’re likely to do things strictly by the book—which is ultimately good for you, too.
Whether they’re looking for expert advice on precious metals pricing or they want to buy gold, Carlsbad residents should work with trustworthy precious metal dealers 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 at 760-253-8072.
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.