In the midst of the coronavirus pandemic of 2020, investors who had previously accumulated precious metals found themselves sitting on a veritable gold mine, particularly those who held these investment commodities in physical form. Gold, palladium, platinum, and silver are often considered “flight-to-safety” investments, which means investors flock to them in times of economic uncertainty. For many investors in 2020, the best way to deal with strong demand for precious metals is to work with a boutique investment firm, and here are five reasons why, brought to you by the professionals at First National Bullion, the best place to buy gold in Scottsdale.
1. Receiving Dedicated & Focused Investment Advice
Institutional investors who keep commodities in their portfolios always seek the advice of boutique firms. For example, a managed pension fund that trades coffee futures will only trust reports produced by research firms that keep track of this agricultural commodity. In the case of precious metals, the advice you’d get from a personal financial planner or a retail portfolio manager would be too general. A boutique precious metals firm focuses on specific commodities and how they fit within global as well as regional financial markets.
2. Figuring Out Investment Costs
Investment professionals at boutique firms will tell you exactly how much it would cost you to purchase and hold precious metals or certificates, which is something financial planners seldom tell their clients. For example, when investing in mining company stocks, management costs and risks tend to be much higher in comparison to physical holdings. There may also be costs related to insurance coverage.
3. Choosing the Right Instruments & Vehicles
Boutique firms can help you determine the right way to invest in precious metals. Not all investors benefit from physical holdings. Some may prefer the more dynamic nature of exchange-traded funds or investment certificates. Although precious metals are traditionally linked to long-term investments, the reality is they can also present opportunities for active traders.
4. Avoiding Scams
This benefit of working with boutique investment firms is worth its weight in gold. However, the precious metals market tends to attract quite a few fraudsters and scam artists who try to sell subpar metals and dubious investment certificates. In some cases, scammers talk their targets into getting rid of their physical holdings at prices that are well below market value.
5. Getting Insurance & Taxation Advice
Physical stock generally needs to be insured, and the cost of insurance premiums may be related to how coins or bullion bars are stored. Needless to say, insurance is a major concern that should be discussed, because the last thing you want is to lose your entire investment. As for taxes, some jurisdictions may classify precious metals holdings, even if they’re physical, as being part of a business activity, thus resulting in taxation other than capital gains.
Whether they’re looking to buy platinum bars, silver bullion, or gold coins, Scottsdale residents can trust the reputable dealers at First National Bullion. 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 intelligence. If you’re looking to add precious metals to your investment portfolio, call us today at 480-546-8928.
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.