Monday, October 2, 2023
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Tips for Buying Gold and Other Precious Metals

Uncertainties in the economy, high inflation, fears of recession, war, and other volatilities can lead people to flock to gold, silver, platinum, and palladium to safeguard their assets. While you might read or get advice about this process and are interested in buying jewelry, bars, or coins, it’s best to research your options before investing your hard-earned money in precious metals.

If you know the process, fees, and what to expect, you can make wiser decisions in the future. In 2023, several countries will be more concerned with buying more tangible assets like gold, and this is more prevalent in China, where the entire nation is increasing its holdings yearly. 

For those concerned with the repetition of the Great Depression, reserving tangible gold coins and bullion will be a safe haven against market volatility and an unstable dollar. However, before running on gold streams like online stores, pawn shops, and government mints, you should know what to buy and determine your long-term goals for better results.

Here are some tips that will help you in the long run.

1. Never Use Credit to Buy Precious Metals

Investing is your priority but never use debt to leverage. Gold bars and coins stored in a vault will not give you the dividends you’re hoping for. Save first before you invest so you can stay financially stable regardless of what’s happening in the market. Never let your bad habits run rampant since it will prevent your portfolio from collapsing when things go awry. More about the portfolio on this site.

Ensure the metals are fully yours, and you can use your self-directed IRA to safeguard your assets. It’s not good to use credit to buy them because you will eventually have to pay back the money before the prices of the bars and coins rise. Practice delayed gratification if you must earn profits without the added interest.

2. Prices Don’t Go to Zero

Investing in assets that don’t go down in value is better, and you can count on gold or silver to do just that. Considered to be safe bets by many investors, they will always be valuable in many industries. Of course, the prices will rise and fall depending on factors like supply & demand, geopolitical instability, and economic catastrophes. Still, unlike the volatility in some stocks and cryptocurrencies, you can generally rely on them.

Traders are very interested in the bars, and even fiat money begins its journey of slowly losing its value, especially if the government becomes unstable. When there are a lot of gold nuggets produced from the mine, it will result in a surplus that will meet the demand of investors, and this can be useful when people begin to panic. When you have cash sleeping in the bank, earning a measly interest annually, this might be your sign to invest in precious metals.

3. Know the Types that You’re Interested in Buying

Different types of precious metals are available, and intricate signs are available too. Bars that have weights of 400 ounces have quality specifications that associations and international organizations set. Buy the bars if you have huge capital, and the process will be straightforward. Choose a manufacturer, weight, and purity, and get them shipped directly to you after the payment. 

On the other hand, numismatic coins or the American Eagle can be a good option. The rarer currencies might fetch a higher price than their face value, especially if they’ve got a special design and imprint that’s limited in their availability.

Standard bar examples are the Good Delivery that traders use for different things. However, you can get the 1-gram ones and plenty of them if you want a substantial hedge against market volatility.

4. Look for a Safe Jurisdiction

Several countries around the world have more relaxed jurisdictions when it comes to gold and other precious metals. This translates to safety for investors who don’t want the government to interfere with their portfolios. An option to buy gold in Canada can be a great idea if you want to get a melt value or the actual gold content of the coins. Canadian Maple Leaf is made from gold and silver and is cheaper when they come directly from government-accredited mints.

Another safe jurisdiction to consider is Switzerland, with the country’s decentralized system. Municipalities create their own rules that are independent of the state. When the local council needs help, this is where they call the higher-ups to settle disputes, but it’s not going to be the other way around.

On the other hand, with a centralized system with only one man to be president, as in the case of the US, they can often make their own rules and ignore the needs of the people. It’s best to store everything safely and not allow any sort of confiscation to occur.

Those areas with a strong supporter of gold will get the best results. If you have the means, move everything to other countries with solid backing and financial security. This way, you’ll be investing with municipalities that prioritize privacy and have sound judgments regarding the assets going into them.

5. Universally-Recognized Precious Metals are the Way to Go

Shop on various websites and see if they offer the American Eagle, Canadian Maple Leaf, Krugerrands, and Philharmonics. Reach out to them first and stick to highly-recognized coins that you can easily sell regardless of where you are. Those with a lower premium than the current spot price might be a good choice, and avoid those you can’t sell. 

Reputable dealers in Canada will help you with these as they know trusted dealers with over a decade’s worth of experience in the industry. Choose the ones currently members of the ICTA and the ANA because they adhere to the stricter guidelines of these organizations, and you’re sure that you are doing business with someone reputable.

6. Be in a Liquid Position

Always be in a position where you can easily sell your bars and coins, especially during a crisis. When you put money into precious metals 50 years ago with a starting point of a hundred thousand dollars, this will be worth around a million or two today. With gold acting as monetary insurance, you will never have to look back in regret when things go downhill.

Following the pandemic in 2020, the 9/11 events, the 2008 crash, and the Black Monday crisis, there are clear indications that people had the same thinking to flock to precious metals and tangible bars so they could get help in surviving these storms.

Setting up your investment horizon can mean you have vehicles to be used in buying bars because they’re insured, and you can’t print the money from anything. Although many countries have done this in the past, there comes a time that these debts should be repaid. 

You should prepare and not be caught running around with sacks of bars and coins you can’t use. Instead, you need them to be liquid, where you can purchase and finance things using your stored assets. See out opportunities that can help you down the road.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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