Buying Bullion: The 3 Top Tips

Bullion investments are gaining headway in 2021. The price of both silver and gold has been soaring throughout the last couple years, in fact. While some people have spent their time investing in the volatile and unreliable bitcoin or other assets buzzing in pop culture, those who stick to reliable investments like bullion are much more likely to see their investments pay off in the long term. 

Precious metals have been used as currency for thousands of years. As early as the 8th century BC, people in Asia Minor began using gold as currency in the form of coins. Since then, people across time periods and across cultures have used bullion to build wealth. 

Today, bullion is still a reliable protection against inflation. While the value of the dollar decreases over time, the value of precious metals remains constant. It’s a limited resource with inherently useful properties, so there will always be value attached. Over the centuries, those who’ve held on to precious metals have most reliably seen their wealth last even as currencies change. 

If you’ve seen how valuable precious metals can be and you’re interested in investing, there are a few things that can help you succeed. Here are the top 3 tips that will help make the most out of your bullion investment. 

  1. Get Familiar With the Industry

There’s a lot to understand about the bullion industry. If you’re unfamiliar with the ins and outs, you may end up with an investment that isn’t very profitable. Knowledge is your best tool when it comes to buying bullion. Spend time learning some of the important details before moving forward with your purchase. 

First, you’ll want to know the cost per ounce of the precious metals you are investing in. Gold, silver, and platinum prices fluctuate every day, so don’t rely on old numbers. Don’t be surprised if you have to pay a higher price for fractional gold pieces than for one-ounce pieces. Fractional gold pieces are typically priced higher. 

Secondly, bullion can have both historical and numismatic value. Numismatic value is the value that the precious metal is worth based on the amount and how much that particular metal is selling for that day. If you’re buying bullion with historical value, the price will change according to rareness, condition, and historical relevance. Even if an ounce of gold, silver, or platinum is selling for a certain price that day, a coin with historical value could sell for much higher. Be aware of how this might affect your purchase. 

Coins produced in different countries will also have varying prices. American Eagle, Canadian Maple Leaf, and South African Krugerrand are three of the most common types of bullion coins. The American Eagle and Canadian Maple Leaf coins are often priced higher, but this can shift if other types of coins are in low supply. 

Lastly, telemarketers tend to solicit coins despite current market conditions. As part of their own payment, they’ll likely take higher commissions despite the condition, value, or rarity of the coins they claim to be selling or buying. Without affiliations with reputable numismatic organizations, these telemarketers could be operating under fraudulent or unethical practices, which makes locating a verified dealer all the more important when familiarizing yourself with the bullion industry.

  1. Think Long Term

The price of bullion fluctuates often. Although it’s currently high, you never know when that can change. The key to success in bullion investments is to not panic if the price drops. Bullion is one of the most reliable long-term investments, but you have to stick around for the long haul. Most experts recommend keeping the investment for no less than three years. This relative time-frame is recommended to ensure you don’t lose money, however, if you want your investment to be highly profitable, it’s a good idea to plan on holding on to it for even longer than that. 

Often, a bullion salesperson might try to close a sale by telling you that a certain deal is only good for one day. This is typically a tactic to encourage you to buy bullion without taking your time and researching all your options. Don’t let anyone rush you into your decision. Because bullion is a long-term investment, a one-day deal is not as important as doing your research and finding a deal that will hold up in the long run. 

Whether you’re thinking of entering the bullion market for the first time or you’re thinking of adding to a growing portfolio, take your time and do your research. The added time you spend researching won’t impact the long-term investment if you hold on to your bullion for years or even decades. 

  1. Work With A Trustworthy Dealer

Scamming is common in the bullion industry. Many people are unaware of how much they should be paying and how the buying process works, so some dealers will take advantage of that lack of knowledge. Be sure to look into the reputation of the dealer you are working with to make sure they will give you a fair price and treat you fairly. You want to work with someone who has a reputation for fairness. 

Some dealers belong to organizations like the Professional Numismatics Guild, which ensures they treat clients well. If you’re trying to buy rare coins, it’s essential that you’re working with a true expert. Ask about your dealer’s credentials before making your purchase. 

Be extremely cautious about buying online or over the phone. Not only could you be charged an unfair price, but you could potentially be the victim of identity theft or credit card fraud. Don’t give out personal details like your credit card information without verifying who you are working with and never give away your social security number to a dealer. If you’re not sure if you’re working with a real bullion dealer, it’s better to wait until you can talk to someone in person.  

If you’re ready to move forward with buying bullion or you simply want to consult with an expert, reach out to Infinity Coins, a small town coin shop that will treat you like a friend and neighbor, while still having the experience, reputation, and expertise you’d find from any national dealer.

Published online: Aug 31, 2021