If you’ve dabbled in stocks and bonds and similar investments before, you may assume the process is pretty much the same with precious metals. On the flip side, you may be new to investing altogether and considering precious metals as a safer alternative to stock-related purchases. Regardless of why you’re now considering investments of this nature, here’s some guidance about what you’ll want to avoid when investing in precious metals, brought to you by First National Bullion and Coin, San Diego’s premier dealer of gold, silver, platinum, and palladium.
Planning for Short-Term Investments Only
Some investors hope to make short-term investments in gold or silver and come away with a significant payoff. However, this isn’t how the precious metals market typically works. Gold and silver assets tend to work better as long-term investments that supplement your financial portfolio.
Not Considering IRA Perks
Precious metals can be used to boost and diversify your IRA portfolio and secure your retirement funds. In fact, many investment companies that specialize in retirement account management will store clients’ physical precious metals in secure depositories. Investments of this nature are also typically covered by flat annual fees.
Overdoing It with Initial Investments
There are many things to appreciate about precious metals as an investment. However, there’s also something to be said for not putting all your eggs in one basket. Some investors make big silver and gold investments while hoping for one of two things:
• Getting considerable payoffs
• Enjoying added security, since precious metal values tend to be fairly stable
The reality is many different factors can affect how well precious metals investments will work for you. Err on the side of caution and start off with smaller investments in gold and silver. If you’re seeing results that are good for your bottom line and portfolio goals, go ahead and expand your investments. There’s no need to rush when it comes to investing in precious metals.
Investing in “Scrap” Metals
Family heirlooms and oher items you may have around your home that are made of silver or gold are considered scrap metal. While such items may have sentimental value or even some level of actual value, scrap silver and gold aren’t investment-quality precious metals. Instead, focus on investing in precious metals that are:
• Officially minted
• Certified as .999 pure
• In the form of coins, bullion bars, or rounds
Purchasing from Unverified Sellers
A common mistake among first-time precious metals investors is to automatically go with the seller with the lowest prices, but this could pose a problem if you choose a seller who’s not verified. When a seller isn’t verified, you may end up with false precious metals or ones that are of inferior quality or incorrectly valued. Always confirm your preferred seller is verified to get the peace of mind you deserve when making precious metals investments.
Not Doing Your Research First
You’ll be better off if you’re a well-informed precious metals investor. Take the time to check out precious metals websites and blogs to learn more about this type of investing. Also, check to see how the market is doing so you’ll have realistic expectations as you make investment decisions.
Whether they want to acquire palladium coins, purchase silver bullion, or buy gold bars, San Diego precious metals investors can rely on the trustworthy professionals at First National Bullion. We can answer all your questions and help you discover how precious metals can be a great addition to your investment portfolio. 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.