5 Tips for Investing in Gold and Silver Bullion Coins

Many investors are considering investing in gold and silver bullion coins to prepare for future uncertainties since inflation worldwide is rising. Investing in these precious metals is also a way to diversify an investment portfolio. It is essential to balance your portfolio in case one market crashes, as not all assets can crash simultaneously.

Silver and gold bars and coin on a dark background.

Moreover, you can use gold and silver bullion coins to preserve the value of your assets since precious metals like gold and silver are known to increase their value as years go by. If you want to try investing in these coins, you may also want to consider these investment tips:

1. Buying Gold and Silver Bullion Coins at The Right Place

Nowadays, buying anything is easy because you can do it online or at physical stores. It is also applicable when buying gold and silver bullion coins.

Here are some places you can buy them:

  • Banks: This may be the safest and most secure way to buy bullion coins, but it may depend on where you live. All you need is to call the banks in your state and inquire about gold and silver bullion coins. Do this on different banks to ensure that you’re not being overcharged. Or you can ask them if you can enjoy lower rates if you’re an existing bank customer.
  • eBay: If you want free shipping and convenience, consider buying gold and silver bullion coins on eBay. However, you should do your due diligence since it could be risky if you’re not yet experienced and well-knowledgeable about bullion coins.
  • TV Dealers: Buying from TV dealers allows you to invest in such coins through a layaway plan. However, such a plan can be expensive since it charges interest.
  • Online Dealer: You can also buy bullion coins from online dealers if you want to avoid talking to a salesperson. It’s also accessible anytime so you can lock in the price and order at your convenience. Moreover, you can find more excellent selections when buying coins from online dealers. And when you do your research, you may find dealers offering lower prices. However, the risk is that you need to pay upfront before they deliver your coins. Thus, it’s best to research your prospective online dealer before making any payment.
  • Local Dealer: If you want to take immediate possession of the coins and see them in person, go to your local dealers. They also offer greater privacy and a transparent price. It means you’ll get to buy the cost of the coin at today’s price.

2. Have Them Under Direct Ownership

There are many ways to invest in gold or silver, and one of these is to buy bullion coins. The best thing about buying gold and silver bullion coins is the ability to own such assets in physical form. It is great since you own what precious metal you can hold. You can do this by storing your coins where you live, especially if you don’t have much money to invest in precious metals.

Having them near you allows you to access them in times of need or crisis quickly.

However, if you have a large collection of bullion coins, it may be best to keep them in reputable third-party storage facilities or banking systems. That way, you can ensure that your investments are well-secured and protected throughout the day. You wouldn’t be anxious about leaving your home since your coins are in good hands.

However, make sure you choose a storage company that does not lease, hedge, or pledge the coins. It means you must have direct ownership of the gold and silver bullion coins, so doing such acts isn’t allowed.

3. Find the Right Time to Buy

One of the best times to buy gold or silver bullion coins is when a financial crisis or recession looms. That’s because the price of these precious metals is more likely opposite to that of the stock market. However, the gold and silver reserves can deplete faster during these times because the demand for such tends to shoot up quickly.

You don’t have to worry when this happens, and you aren’t able to invest. You must wait for things to calm down before buying instead of letting the fear of missing out (FOMO) control you.

Or you may have to understand how the prices of gold and silver are determined to know when to buy these precious metals. One is that prices tend to go high when there’s a high competition or during a busy time, known as the supply and demand cycle.

4. Compare Prices

Once you understand the price movements of such precious metals, it may be time to compare dealer prices. Generally, bullion coils sell at a price above the precious metal’s spot price—its price during the day. You must also consider the delivery price, especially when buying from online dealers. Insurance fees also vary since these charges will be included when you buy from online dealers. Thus, you should call your prospective dealers to find out the prices before committing to one dealer.

Doing this will help you find the best investment without breaking the bank. Try finding dealers offering the lowest price so you can buy more.

5. Check the Hallmarks

Most importantly, you should ensure that the bullion coins you buy are hallmarked. A hallmark ensures the purity of the gold or silver coin through markings engraved on the coins. You can also use hallmarks to avoid being cheated when buying gold or silver bullion coins.

However, you should check the law in your state as some countries don’t require hallmarking gold or silver bullion coins. For instance, gold hallmarking in the UK is exempt from the law of showing gold hallmarks. It means they don’t require hallmark identification on this category of gold.

But if you still want to buy coins with markings, you can still do so since there are refiners who still stamp their gold or silver coins with identification marks. These are known as mint marks, so, you can know who the manufacturer is and hold them accountable for the coin’s purity.

Conclusion

Investing in gold and silver bullion coins is easy if you know how to do it right. Start by learning where to buy them, considering their storage, buying them at the right time, comparing prices, and checking hallmarks. These tips can help you maximise your investments while keeping you safe from being cheated on.

7 replies
  1. Jayne Kennedy
    Jayne Kennedy says:

    Gold, buried underground for 500 years, kept or increased its value. Government paper notes like the pound and euro buy you less food this time last year. Central banks are buying gold. Ask yourself, why are they telling the public not to buy gold?

    Reply
  2. Dan Addams
    Dan Addams says:

    Thanks for reminding us that when it comes to investing in coin, we should always check its authenticity. My dad mentioned he would like to invest in some coins. Maybe it will benefit him to meet with a reputable coin dealer.

    Reply
  3. Iris Smith
    Iris Smith says:

    Thank you for pointing out that local dealers offer more privacy and open pricing. My mother wants to sell her large collection of old coins. I’ll seek out local coin dealer services to give her more privacy.

    Reply
  4. Mia Evans
    Mia Evans says:

    It really helped when you said that the purity of the gold or silver coin can be checked through the hallmarks engraved on them. I have no idea on how to read them so I plan to take them to a shop that accepts them. With their help, I can find out about their value and sells those gold pieces to help me pay for some of my bills at the moment.

    Reply
  5. Jamie Thorncliff
    Jamie Thorncliff says:

    “Much like a seasoned prospector, I sifted through the internet in search of valuable insights – only to find the mother lode right here! Your explanation on investing in gold and silver is pure ‘carat’ gold – simple, precise, and a real eye-opener, especially on the nuances of hallmarks. With these tips, I’m now more bullish on bullion! Thank you, for this gold standard article.”

    Reply
  6. Andy Reiner
    Andy Reiner says:

    Great article! The 5 tips for investing in gold and silver bullion coins are incredibly valuable. Thanks for sharing these valuable insights on investing in bullion coins!

    Reply

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