Tips for Buying Precious Metals

Metal coin

Buying precious metals isn’t cheap and the whole process can seem quite intimidating to you if you’re new. As with most things in life, if you’re well-informed, you stand a good chance of making a success of it. Doing your homework first is the best way to start – and the best way to carry on.

Worry about the risks before you do anything else

All investments come with risks and this is the first thing you need to understand. Before you part with a cent, do all your due diligence and be good and ready to see the value of your investment dip a few times here and there. The first rule of investing is not to panic and make any rash moves. Most often, if you don’t like what your investments are doing, wait a few days, they’ll stop it!

Know the difference between a cash purchase and a Gold IRA

Your Gold IRA (and it doesn’t have to be just gold, it could be platinum, silver or palladium) is a retirement account that holds your precious metal in coins and/or bars. You can buy this bullion from your retirement fund and then hold it in an Internal Revenue Service (IRS) approved depository. If you decide to take possession of the bullion for yourself then the IRS will view this as a withdrawal and it’ll tax you on it. If you make a cash purchase with money outside your retirement fund it’s not seen as a withdrawal. You’ll simply be buying a set ofplatinum coins from Golden Eagle Coins and having them delivered to you.

Be prepared to wait

Unless you’re planning to start day-trading in metals and other commodities, then investing in precious metals is a long-term venture. You can make money in the short-term from the volatility in the metals market, but if you’re buying physical gold or silver then you need to wait a few years. Ultimately, having a stash of gold is a valuable insurance policy against unstable markets; it’s also something you can pass on to the children, especially if the value of your investment has increased a lot over the years.

When you gain more experience and you have some more cash to work with, day-trading in metals can be very lucrative indeed, as you use the short-term volatility of the markets to ride up and down, making money from long trades and short trades. It’s not for the feint-hearted, though, so don’t hurry into it!

Find yourself a well-established and well-regarded metals broker

Ideally, you should look at a company that’s been running for at least a couple of decades, so you know they’re experienced and trustworthy. If you talk to a few brokers and one or two of them make you feel that your $100 purchase is too small for them to actually bother with, or you feel patronised, then cross them right off your list. Many a big investor started off buying grams of gold and ounces of silver, they just had patience and a good broker on their side!