Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Ravencoin RVN About to EXPLODE to NEW HIGHS! Last Chance to Buy Before it goes to the MOON! - 21st Oct 21
Stock Market Animal Spirits Returning - 21st Oct 21
Inflation Advances, and So Does Gold — Except That It Doesn’t - 21st Oct 21
Why A.I. Is About To Trigger The Next Great Medical Breakthrough - 21st Oct 21
Gold Price Slowly Going Nowhere - 20th Oct 21
Shocking Numbers Show Government Crowding Out Real Economy - 20th Oct 21
Crude Oil Is in the Fast Lane, But Where Is It Going? - 20th Oct 21
3 Tech Stocks That Could Change The World - 20th Oct 21
Best AI Tech Stocks ETF and Investment Trusts - 19th Oct 21
Gold Mining Stocks: Will Investors Dump the Laggards? - 19th Oct 21
The Most Exciting Medical Breakthrough Of The Decade? - 19th Oct 21
Prices Rising as New Dangers Point to Hard Assets - 19th Oct 21
It’s not just Copper; GYX indicated cyclical the whole time - 19th Oct 21
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The Right Mentality: 7 Things to Consider When Buying Precious Metals

Commodities / Gold and Silver 2015 Jun 01, 2015 - 03:16 PM GMT

By: MoneyMetals

Commodities

Stefan Gleason writes: Diversifying your wealth into precious metals is one of the most important financial decisions you can make. It’s also important to carefully consider what types precious metals to own amidst the array of options. What follows are seven key criteria for deciding what to buy.


1. Tangibility

From futures contracts to exchange-traded funds, you can find a multitude of derivative instruments tied to gold and silver prices. But there’s a huge difference between being exposed to precious metals prices and owning physical precious metals that you can actually hold. Only when you have actual metal in your possession do you have a hard asset that is free of counter-party risk.

2. Frugality

When buying precious metals for investment, paying huge premiums over melt value rarely pays off. Plain and ordinary bullion beats fancy and “rare” coins. Graded numismatics, “proof” finishes, and other heavily marked-up alternatives to common bullion products leave you with less actual metal to show for your investment. During a financial crisis, the melt value of your coins may be all that matters. Then the value of your investment will be measured by how many ounces you were able to acquire.

3. Functionality

It’s a good idea to try to get the most metal for your dollar, but not to the point of impracticality. The absolute lowest-premium products tend to be large bars, which aren’t necessarily practical for carrying in your pocket or purse or doing anything with outside of storage. By owning precious metals in multiple smaller unit sizes, you will be able to use them in multiple ways – displaying, bartering, trading, gifting, etc. Consider fractional gold coins/rounds, including half-ounce, quarter-ounce, and tenth-ounce sizes. Fractional silver sizes are available, too. Half-ounce rounds and 90% silver quarters and dimes may come in handy for making change in barter transactions or tipping.

4. Liquidity

Gold and silver spot prices are globally traded and recognized everywhere. Most common coins, rounds, and bars will be bought near spot prices by reputable dealers. Exceptions include graded numismatic coins (whose values are subjective and carry huge bid/ask spreads) and 1,000-ounce silver bars (which may require an assay before they can be re-sold). Platinum and palladium represent a small share of the retail bullion market and therefore are less liquid than gold and silver unless you are buying and selling from a large national dealer like MoneyMetals.com

5. Purity

For the most part, purity isn’t something to be concerned with. A purer coin isn’t necessarily better or more valuable than a similar coin that is less pure. Some gold coins, namely American Eagles and South African Krugerrands, are alloyed with base metals for strength. But they contain the same amount of gold as a .9999 pure coin. There are certain purity requirements for physical precious metals to be included in IRAs. Most common gold and silver bullion products are IRA-eligible.

6. Reportability

This is actually a non-issue for the vast majority of bullion transactions. Purchases made by credit card, check, or bank wire generally don’t need to be reported by dealers to the IRS or other government agencies. With a rare exceptions, only actual cash transactions of more than $10,000 must be reported to the government. Don’t be tricked into buying a pricey collectible coin touted as “non-reportable” or “non-confiscateable” when in reality common bullion coins aren’t going to be reported or confiscated either.

7. Opportunity

All bullion products offer the opportunity to profit from rising metal prices. Some bullion products offer the opportunity for additional profit due to the potential for premium increases. For example, premiums on historic, no-longer minted coins such as 90% silver quarters can rise when demand for them rises. Pre-1933 gold coins offered by Money Metals Exchange can now be had for minimal premiums that stand to rise if collector interest in them grows. Some current limited-mintage coin releases could also acquire collectible value over time. (That said, Money Metals urges investors to focus on low premium items when making purchases. If the premium somehow rises over time, consider selling those items and using the proceeds to buy more ounces at lower premiums.)

By Stefan Gleason

MoneyMetals.com

Stefan Gleason is President of Money Metals Exchange, the national precious metals company named 2015 "Dealer of the Year" in the United States by an independent global ratings group. A graduate of the University of Florida, Gleason is a seasoned business leader, investor, political strategist, and grassroots activist. Gleason has frequently appeared on national television networks such as CNN, FoxNews, and CNBC, and his writings have appeared in hundreds of publications such as the Wall Street Journal, Detroit News, Washington Times, and National Review.

© 2015 Stefan Gleason - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in