Investing in gold and silver has become popular in recent years. With nervousness about the current economic state of the world, many investors are securing their wealth with gold and silver. While this is a proven strategy for fighting inflation and securing your savings, the fact that even the most savvy investor might not be familiar with investing in precious metals leaves the door open for shifty salesmen.
There are some basics of investing in gold and silver that you should keep in mind when the time comes to make your investment. Knowing what you financial goal is and doing your research so you can get the best price for your gold or silver should make sense. Of course, as with many investments, it’s easy to be swayed by emotion and to believe what you’re being told by a gold company representative.
If your goal is to simply secure your savings, such as an IRA or 401K, with gold, then everything is simple. You can open a gold IRA, fund it by doing a rollover or other savings and then you purchase your gold and other precious metals. Your gold and silver will be held by a custodian in a secure location. On the other hand, if you wish to buy and store your gold and silver yourself then things may become a little more complicated.
Buy Bullion For Investing And Coins For Fun
As with any investing, it’s your goal to get the best price possible for the object that you’re investing in. It doesn’t matter if we’re talking about cars or real estate or gold. You want to get the best price. This is why we have unit pricing in grocery stores and we compare the price of homes by the square foot when we’re considering investing in real estate. Gold and silver are no different and this is why you should buy bullion, blanks and bars when investing in precious metals.
Buying coins categorized as numismatic coins are collectable gold and silver coins. They are not meant to be bought as an investment in gold or silver. It is their collectable value that you will be paying for and not their gold and silver content. Buying these coins to secure your wealth would be like buying an Italian sports car when you’re shopping for basic transportation.
While there are people who invest in numismatic coins, this is usually their hobby. They know a lot about coin collecting. They know how many of coins were minted and they have some knowledge of how to grade coins as well as the ability to speculate whether a particular coin is going to increase in value over the years. These coins may be made of gold but they’re not mean to be treated as a gold investment. This is why the government won’t allow you to include them in a gold IRA.
Avoid Pressure And Greedy Salesmen
If, when you are talking to a salesman, you feel any sort silver bowl of pressure to invest in numismatic coins, walk the other way. If the salesman uses any sort of scare tactics to push you to buy numismatic coins when you are simply trying to purchase gold for investment purposes, thank him for his time and find another gold company to do business with.
Some salesmen will tell you that gold bullion and bars can be seized by the government. They will cite historical facts that date back to when the dollar was backed by gold. Citizens were asked to sell their gold back to the government. Since the dollar is no longer backed by gold, there would be no reason to think that this might happen in the future. The fact is that the markup on numismatic coins is very high.
Also, if you feel pressure to buy physical gold bullion or bars because the price is constantly changing, keep in mind that the price could also drop while you’re making your decision. Feeling pressured to make an investment immediately should be a sign that you’re dealing with a gold company that might not have your best interest at heart.
Investing in gold and silver is a time tested way of securing your hard earned savings. Investing in numismatic coins is also a great hobby that can sometimes become profitable. These two investments are not the same, though. If you’re hoping to secure your retirement income during uncertain economic times or you’re hoping to use investing in gold to fight inflation then keep these tips in mind when it comes time to purchase your gold or silver.