Precious metals are a popular investment option to gain optimum returns. However, it isn’t as straightforward as it sounds. Whether you’re buying bars or coins, there are certain things you must be aware of. These can mean the difference between a sizable gain and a considerable loss; therefore, you ought to be careful as an investor. You must get an understanding of the precious metals before jumping into it.
Anyways, once you have decided to invest in precious metals, here are some things to keep in mind:-
Which Precious Metal Do You Want to Buy?
Gold and silver are popular investment options in precious metals. Even though both have attractive features, both can vary greatly in terms of prices and volatility. Gold is more popular as investment options and commands a larger liquid market.
Also, the gold prices are less speculative as compared to silver. Meanwhile, silver is cheap and is attractive to small investors, but prices can speculate greatly. Therefore, Gold is a better investment option.
Beware of Where You Buy From
Many stores, retailers, online websites, auction houses, etc. sell gold and silver bullion, but you shouldn’t buy it from just anyone. With so many scams happening, it is essential to be careful. Selling Gold is unregulated, and anyone can do it. Therefore, it is important to do your research about the dealer.
If they have a website, you may check their contact details, company history, licenses, etc. Double-check if they sell investment-grade bullion stamped with the company’s logo and accredited by the Australian authorities.
Make sure you buy bars or coins from reputed nationwide retailers like https://www.goldbullionaustralia.com.au only.
Don’t Forget to Ask for Receipt
Whenever you buy Gold or any other precious metal, it is important to ask for the receipt. A receipt is the only proof that the metal is bought from that particular shop. It comes in handy in case you land up in a problem later. Also, this receipt will be mandatory when you wish to sell it later.
Avoid Buying Illegal Gold
Never buy Gold from agents who may offer cheap rates, but they won’t furnish a proper receipt, which means the Gold is either stolen or is impure. Such Gold will have no value in the market when you sell it, and your investment can go waste. Always buy from trusted, genuine, and known vendors even though you may have to shell out a few dollars extra.
Be Aware of the Actual Weight and Size of the Bullion
Make sure you know the actual weight and size of the bullion. Many independent online sellers tend to misrepresent the measurement sometimes by accident and sometimes purposely.
For instance, Gold is measured in grams, but gold bullion may be measured in troy ounces. In case the bullion is measured in troy ounces, make sure you know the conversion and have the actual weight. This can save you from potential losses in the future when you wish to sell it.
Congratulations! You’ve just taken the first step towards diversifying your portfolio. Amid all the uncertainty, it has never been more important to diversify and add precious metal bullions to your investment strategy.