Making a Success of Buying Precious Metals


Your first foray into buying precious metals might feel a bit intimidating as, even if you’re used to using an online trading platform or something similar, buying physical metals is a different proposition. If you take some time to inform yourself about it, though, then you can enter this new venture with a bit more confidence. All you have to do then is, well, keep going!

Think about the risks first

Any investment, even in a physical asset like precious metals, comes with an element of risk and so you need to do all your due diligence before you make any purchases. Visit here for lots of advice and also live metals prices so you can watch the upticks and dips of the metals you’re interested in.

The golden (sorry for the pun) rule of all investing is that you make no sudden moves – either buying or selling. If you’re not happy with what your assets are doing at any one moment, just wait a few days or weeks as it’s likely to change.

Be able to differentiate between a Gold IRA and a cash purchase

A Gold IRA – it doesn’t have to be exclusively gold, you can also invest in silver, platinum or palladium – is a retirement fund that holds your metals in bars and coins. You can buy this bullion from “inside” your IRA fund and the store it in an IRS-approved depository. However, if you take possession of the bullion, the IRS will deem this to be a withdrawal and you’ll be taxed on it. If you make a cash purchase with money from outside of your IRA it’s not seen as a withdrawal – you’ll just be buying coins or bars from a dealer and having them delivered to you.

You need a good dose of patience

If you’re really short on patience then day-trading might be more your thing. Then again, if you’re new, day-trading most certainly isn’t for you! People do make money in metals by day-trading, but it’s for the experienced.

If you’re investing in gold, silver, platinum or one of the other precious metals, then you need to hold onto it for a few years. Having metals is a good insurance policy against future market instability and it’s also something you can pass onto the children. Metals always make money so if you’ve had your stash for at least ten years then it’ll have performed well.

Once you’ve got some more experience – and some more cash – you could start day-trading. This uses the short-term volatility of the markets to make money, but it’s really not for newbies and play-it-safe types.

You need a well-established and reputable broker

Ideally, you need a dealer that’s been in business for 15-20 years at least, as this tells you they’re trustworthy and know their stuff. If you’re starting off small (which you should) and a dealer makes you feel that your purchases aren’t worth the effort, then leave them right behind. Lots of successful metals investors started off in grams, and your broker should be happy to go along with you on your journey.