Bullion Exchanges Beginner’s Guide to Bullion Investing

You’re ready to take the leap and join the ranks of gold and silver bullion owners, but where’s the best place to begin? As a beginner, the simplest and surest method of bullion investment is to buy bullion. But even this process can seem overwhelming, as you search through dealer pages and attempt to separate the most important information from what’s unimportant. Allow us to simplify this process for you and support you in your buying process with this quick guide.

There are five main choices to consider when buying bullion: When, What, How Much, Who, and Where.

  • When: you want to choose the optimal time to invest, if the market is reporting gold at its highest peak in the last few years, it’s probably to your advantage to wait for it to dip before purchasing.
  • What: decide whether you’d like to purchase bullion in the form of coins, bars, or ingots. What kind of investor you are will help you answer this question. Most individual investors choose coins, and those looking to make a more substantial investment will pick bars or ingots.
  • How much: for a general rule of thumb, gold should represent 10% of your physical assets. Due to recent global upheavals, it is our current recommendation that gold should represent 20% of your physical assets.
  • Who: an accredited broker can support you throughout the process and provide advice about the current market. Don’t trust just anyone with an investment of this magnitude!
  • Where: you don’t want to just go home and pop your investment into your underwear drawer. Depending on the amount you will purchase, have a safety deposit box at the bank or a home safe prepared to house your brand new bullion.

Gold or Silver?

Silver is currently the more affordable of the two precious metals, making it a solid choice for new investors on a budget. If you decide to choose silver, be sure to select physical silver rather than silver stocks. Many experts warn against paper stocks of precious metals, especially as there has been speculation that the paper market will fall under the surge for physical metal demand. Remember, if you own silver stock, you do not hold the physical metal, but the paper representation of it.

Before you purchase silver, take your time to learn about its spot price and its recent movements, choosing a reputable dealer, and how to distinguish fake silver from authentic silver.

Gold is usually the more popular choice, mainly for the confidence it gives investors looking to pass their wealth tangibly from generation to generation. Gold bullion represents a risk-free investment that you can safely count on. Before making your purchase, determine your long-term objective as an investor and hold yourself to it, never jump into impulsive decisions based on the market that day.

Here at Bullion Exchanges, we hold ourselves to the highest standards to guarantee our customers the safest and most comfortable investing experience. Reach out to one of our friendly associates today and keep an eye on our regularly updated precious metals price charts to help you through the investment process.


Beginners Guide

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