Here are six pieces of advice to help you become a precious metal investor.
We live in times of uncertainty. An age where we’re turning to alternative methods of making sure our wealth is preserved and in a form we trust. For the first time, many of us are thinking about investing in alternative investments that hold value such as physical gold and silver.
1. A Plan That’s Good as Gold
Consider buying gold and silver with a proper plan. A wise investor might not pour all their money into the first set of coins they come across and wait for the returns. Research thoroughly. If you’re a true beginner, getting in touch with a friendly bullion dealer is always a good place to start.
2. Be Sure About What You’re Buying
There are different forms of precious metals. Numismatic coins have a very different level of value over bullion. While bullion is valued according to its weight, purity and the price of the metal – numismatic coins are priced by their weight, but also rarity and collectors’ value. For example, a rare Spanish piece-of-eight and a buffalo gold coin may weigh the same, but the piece-of-eight could be worth one hundred times more than a buffalo gold coin due to its rarity.
3. Get To Know Your Metals
Most demand for gold actually comes from jewellery. They make up about half of the precious metal industry. The rest comes from a direct investment in physical gold – where investment and industrial companies press the metal into coins, medals and bars or use them industrially in electronics.
4. Mix Up Your Portfolio (Diversifying)
Precious metal investment is an essential part of investment strategies that hedge against the global unpredictability of financial markets. By adding precious metals to your portfolio, you’re diversifying your risk should any of them underperform.
Think about how you’re going to store your bullion. If you’re storing it at home, find a safe and secure location. You could think about offsetting the cost of storing your gold yourself by using a dealer that also offers vault storage.
5. Keep An Eye On The Trends
Before you buy, monitor the spot price (which is simply the price you’ll pay if you purchase “on the spot”) which is based on the Bid/Ask Price. Understand that while gold’s value is mostly shaped by supply and demand, it also has a connection to other economic forces.
Previously, gold prices have risen at the time the stock market has fallen. Investors generally hurry to put their money into material-backed, safe-haven investments as they fear the markets are in a downturn.
Once you start getting the hang of market trends, economic forces, what’s gone on in financial history, you’ll have a good understanding of how things can work.
6. Invest A Little, A Lot
For the last ten years, precious metal prices have risen, and analysts have projected that they’ll continue to do so in the years to come.
Some investors prefer to invest by buying smaller amounts of metals over a period of time. Some invest with the mentality that its money that you won’t need for five years, ten or even twenty years. Committing to purchasing a small amount every few weeks will help you grow your portfolio over time and get you the average cost price.
Purchase the assets of your choice and begin tracking your precious metal investments consistently. Consider using tracking software tools to continually analyse the changes in the value of your metals.
Invest with Bleyer
Our friendly Bleyer team is always on hand to assist you. If you’d like to talk to a specialist on the phone and have a free 1-2-1 consultation, call the office on 01769 618618.
