How can you buy close to the spot price and really stretch your investment dollar? Here are some ways for you to maximize your capital and get the most bang for your buck in precious metals investing:
Decide Which Precious Metal Products Interest You
Bullion pieces such as bars and rounds generally command lower premiums, while coins can boast wildly different premiums depending on each specific item. A certified, mint-condition, rare coin, for example, is likely to have significant numismatic value and, therefore, a huge premium. Silver, gold, platinum, and palladium bullion rounds are available in bulk quantities and can typically offer the best value for your dollar.
Certified vs. Uncertified
It’s entirely up to you whether you prefer precious metals that have been authenticated and certified by a third party or uncertified precious metals. However, it is important to be aware of the pros and cons of each choice.
Certified silver and gold bullion pieces are generally more valuable because they have been graded according to a standardized rating system and have been assigned a numerical grade. This third-party authentication adds value to silver pieces, but it does increase the price you must pay for them.
Uncertified silver and gold bullion products are generally less expensive, but they also might not hold their value. In other words, if you buy gold or silver that was uncertified and then decide you want to sell it, you might not be able to get as much for your bullion as you paid for it.
If You’re Not Sure About Something, Ask Questions
Don’t be shy – precious metal dealers and websites want to make sure you are satisfied. If you have any questions about bullion products or the precious metals market as a whole, just ask! Chances are that your dealer has been working in this industry for years and can answer all of your questions.
Stay Informed About The Market
Of course, spot prices fluctuate constantly, so you’ll want to stay up to date on market news. Fortunately, most dealers provide price updates on their websites and offer email alerts.
You can follow the gold spot price and silver spot price easily on many websites. Carefully observe the price chart and time your purchases to your advantage. Know where gold and silver are trading before you buy.
The spot price is a current estimate of the value of one troy ounce. It fluctuates based on supply and demand and economic factors such as inflation.
When you read news about the precious metals market, you’ll learn about different market trends that could affect the price of precious metals in the near future. You can use this information to your advantage when timing silver, gold, platinum, and palladium purchases or deciding when to sell bullion pieces you already have.
Don’t Expect To Get The Most Out Of Your Investment Right Away
Precious metal prices can be very volatile. Bullion pieces may jump or plummet in price overnight, so it might take a little time for your purchases to really pay off. It’s important to stay up to date with spot prices if you hope to make the most of your investments.
Many people like silver and gold investments because they tend to appreciate over time. However, the value of precious metals bullion will not climb overnight. Keep this in mind as you set silver and gold investment goals and determine when it is a good buy.
Cryptocurrency
No market news would be complete without mentioning the role of precious metals in the new cryptocurrency boom. When BitCoin first came on the scene, precious metals became one of the most widely held commodities by market participants. Silver and gold are commonly purchased with BitCoin because they tend to have a low correlation to other assets BitCoin investors are holding, which increases portfolio diversification and helps mitigate risk.
Understand Any Fees That May Be Attached To Your Purchase
This is a crucial detail that buyers tend to forget in the excitement of making a purchase. What additional costs will you incur with your precious metal purchase? You may be charged for shipping and insurance on the package. You may even face a fee for paying by credit card.
Make sure you understand all fees attached to your transaction, as you must consider these additional expenses as part of the total purchase price of your precious metals. You can only compare bullion items side by side when you know the whole cost of an item.
Buy Metals In Volume If Possible
Many reputable companies offer significant per-ounce discounts when purchases are made in bulk. For example, on a product page, you will likely see a chart showing different price points based on the quantity you order. Just as it is with many everyday purchases, buying in bulk means you may pay a lower price per unit. This is a great way to help you get the most for your money when buying precious metals.
Look For Specials Or Sales From Your Retailer
Look for special deals from precious metals retailers. They could provide you with the ideal opportunity to acquire gold or silver for the absolute lowest premium price and help you get the most for your money. It’s important to check prices and news frequently. You should also keep tabs on retailers’ websites for sales and deals.
Think About Selling And Start Price Decreases
Be sure to consider what items you might sell if the spot price starts climbing quickly. This is another factor that should be considered before you purchase bullion. Remember, precious metals don’t have any inherent worth beyond their value to collectors and investors. Coins and bars are only worth their metal content value plus any numismatic value. If bullion prices keep rising, you could easily turn a profit by selling your precious metals when you need funds.
Think About Taxes And Where You Plan To Hold Your Silver
Precious metals can be held in a Self-Directed IRA, which is a great way to buy silver and gold without worrying about holding costs. But if your bullion will be held in an IRA, you need to check with your custodian before making more purchases. You may want to invest in precious metal pieces that are exempt from capital gains tax or any other taxes that might apply. Some people might also consider bullion as home storage to avoid the cost of safe deposit box rental fees.
Key Takeaways
Be sure to stay up to date on the price of silver, gold, and other precious metals you’re interested in. Additionally, precious metal bullion comes in a wide range of sizes, so it is best to start small and do what is best for your portfolio. It’s important to check precious metals’ prices and buy whatever metal is best for you and your budget before making any precious metals purchases.
