How To Buy Bullion - Steps to Take

How to buy Bullion

While entrepreneurs have numerous options at their disposal, the simplest way to invest in precious metals is to buy bullion. Bullion can be bought as bars or as coins. The advantage when you buy bullion coins is that it is easier to store and sell. On the other hand, if you're interested in acquiring a sizable amount of gold or silver, then those who buy bullion bars are doing so in a more cost-effective way. This is because bars tend to have lower premiums than coins.

Certain dealers and investors complicate the process when you want to buy bullion, but the truth is that the transaction is actually very simple. Let's explore the steps to take when making a purchase!

Understand when to buy

If you want to make a profit, then you will need to educate yourself on the matter and find the perfect moment for the investment. To be more precise, you should purchase gold or silver bullion when the prices are low. Then, you should sell these commodities when their value is high. You can keep an eye on timing the market right here with our live spot price charts.

Decide what to purchase

As previously mentioned, physical bullion is available in three forms. Without denying that there are other options for investing in precious metals, it is highly advisable to stick to these types of bullion. Buying ETCs (Exchange Trade Commodities) for instance could seem a good decision at first, but the costs and the level of risks involved might not be worth it. This is especially true if you want to buy bullion.

If you're a private investor, you should consider purchasing bullion gold coins issued by a respected private entity or a leading country. Corporations who are interested in making a large investment usually acquire the bullion available as bars or ingots.

Establish how much you want to buy

The rule of thumb when you want to buy bullion—particularly gold bullion—is to transform 10% of your assets into gold and hope you never need it. However, given the economic instability of these days, financial analysts advise cautious investors to allocate around 20% of their portfolio for this purpose.

Choose a dealer

It is important to understand that bullion dealers make their money like everyone else in the transaction business. This means selling for more than the market value and buying for less. However, considering that you're looking to expand or hedge your portfolio in precious metals, you should expect a high cost when you buy bullion.
Instead of putting too much emphasis on the price of gold, you should especially make sure you're working with an accredited broker. Reputable bullion dealers will usually have an accreditation from a known gold merchants association or the government.

Determine where you will store it

Owning physical gold or silver comes with numerous benefits. However, the setback is you need to find a way to store it securely. Depending on how much you intend to buy, you can either store it in a bank's safety deposit box or at home, in a safe.


Bullion Exchanges can help you

If you want to learn more about when, what, and how much bullion you need for your portfolio, then don't hesitate to contact us. Our experienced team is at your service, ready to answer all questions regarding how to buy bullion.