Investments Beyond Stocks and Bonds like Buying Precious Metals can be even more intimidating is you are not familiar with them. So we have some points to help you discover precious metals and maybe get you curious about them. Here are the basics for you:
Beyond Stocks and Bonds: Buying Precious Metals
Understand the risks that come with buying precious metals
No investment is without risk and you shouldn’t trust anyone who says otherwise. You need to perform all your due diligence before making a purchase and be prepared for your investments to lose some value at some points.
Be open to advice and criticism
Chances are you’re one of the first in your circle to branch out into precious metals and that delivery of gold bullion from Golden Eagle Coins may earn you some criticism. Your friends might ask you why you’ve suddenly turned into a prepper, or why you’re not bothering with your usual stocks and derivatives so much. You shouldn’t let this bother you, as you’re buying your gold for peace of mind, not necessarily for a profit. Plus, it’s a fun area to get into and most metals brokers are always happy to chat and offer advice.
Learn the difference between a Gold IRA and a cash purchase
A Gold IRA (or any other precious metal IRA) is an account that holds precious metal coins and bars. These metals are bought with money from your retirement fund and held safely in an IRS-approved depository. If you want to take possession of the bars or coins yourself, then the IRS sees it as a withdrawal and it’ll tax it. However, a cash purchase made with funds outside of your retirement fund isn’t treated in this way by the IRS – you’re just buying coins and having them delivered to you. Ask your broker for help and advice.
Be very patient
Precious metals are a long-term investment and you should be prepared to keep them for ten years or so. In the short term they’re volatile, so you probably won’t make much on them any time soon. They are, however, also a valuable insurance policy and something you can pass on to the children. Think of it like buying property – you know it’ll earn you money in the long, but it’s not something you think of selling every day.
Go with a well-regarded, well-established broker
This is actually the most important thing. You need to feel comfortable with your dealer. Look for a company that’s been going for a few decades and one that you feel safe talking to. If you’re made to feel ignorant, or that your purchases are too small to be taken seriously, then walk right on.
The signs of a good metals dealer
- there’s full transparency over fees, buying premiums, commission, shipping and any other processing costs;
- the company reps are always happy to hear from you and happy to help; they should aim to improve your knowledge and experience, even if this means the odd lecture or unpalatable truth;
- a good buyback record is important too, so you should look for a company that offers to buy back metals without big fees or lots of quibbling;
- the company has good associates and third parties, as well as strong, globally-recognized insurers, and
- the dealer is accredited with the Better Business Bureau (BBB), as well as being associated with the Professional Coin Grading Service (PCGS) and/or the Numismatic Guaranty Corporation (NGC).
I hope all this research encourages you to do your own and explore investments Beyond Stocks and Bonds: Buying Precious Metals.