When it comes to investing in precious metals such as gold and silver, there are plenty of options available in the current market. Not only that, but it is pretty common for initial research on bullion products to bring about a handful of questions regarding the topic.
Beginner investors, along with those that take interest in the bullion market, often ask themselves what is the best way to buy gold and silver metal. After all, it is every investor’s intention to get their hard-earned money's worth.
Newcomers to precious metals investments can get overwhelmed with the large amount of products available in the market today. On top of that, they might face not knowing which product to buy, or what is the correct price to pay for it.
The search for the best way to invest in gold and silver bullion can be long and time-consuming.
With this in mind, in this article, we will take a look at how to buy physical gold and silver products. In addition, we will show where to buy and how to estimate the overall price of precious metals products.
There is, perhaps, no “right” or “wrong” way to buy bullion products. However, gold and silver investors may be able to determine which option best suits their investment needs if presented with some general directives.
In the 1970s, the United States decided to fully abandon any form of a gold/silver standard as a monetary system. In fact, there are no countries nowadays still using gold or silver as commodity money.
Nevertheless, the appeal of precious metals did not diminish. Precious metals, such as gold and silver, and more recently, platinum and palladium, enjoy a high industrial demand for their varied uses in electronics, jewelry, renewable energy sources, and even medicine and dentistry.
When it comes to precious metals for investment purposes, many experts suggest dedicating some percentage of your investment portfolio to buy physical precious metals, like gold and silver coins, or bullion bars. That became especially true after the financial system crisis of 2008. Because precious metals are a physical asset that have been a store of value for millennia, their prices tend to perform well in times of economic uncertainty. Thus, many now see them as a sensible way to hedge against inflation and fiat currency devaluation.
To begin with, there are generally two major ways to buy gold bullion and silver products. Investors can acquire bullion metals through trusted, secure online dealers, such as SD Bullion, as well as in local brick-and-mortar shops that sell precious metals the old-fashioned way.
Another investment strategy includes the purchase of gold ETFs and silver ETFs, or Exchange Traded Funds. However, ETFs are an alternative related to mining stocks and mutual funds, which do not involve personally acquiring tangible, physical metal.
Be it over the internet or in person, each of these alternatives may offer customers some specific benefits. For this reason, let’s check out the perks of purchasing tangible precious metals online as well as locally.
Buying Bullion Online
Buying gold and silver online became a common alternative in modern days. Without a doubt, matters of convenience and inventory play a critical role in this scenario.
Online gold and silver dealers are available at all times through a website. This means that any person with a device with access to the internet is able to visit theses online shops. On top of that, you can virtually be anywhere in the world and still complete your purchase. Online dealers also bring about the benefit of privacy, by allowing customers to shop wherever they want to.
This convenient method of investing in precious metals helped shape the way the silver and gold market is established in the modern era.
Moreover, an online dealer can offer a great number of products. This is, shops on the web like SD Bullion are not limited to a solid, brick-and-mortar space. The gold and silver pieces available for sale can meet the needs of a larger customer base when compared to your average local coin shop.
Years of experience in the bullion market, along with direct contact with sovereign and private mints allow for a plethora of different products.
Therefore, different profiles of investors can browse the variety of silver and gold products in our catalog at any given time.
Buying Bullion Locally
Visiting a pawn or local coin shop was long established as the traditional method of investing in precious metals. Although the internet helped shift the way bullion investors acquire their gold and silver assets, the usual brick-and-mortar alternative has not become obsolete.
Local stores allow for personal and specific inspection of the desired product.
It is true that their inventory may differ from online options since they adapt to the desires and preferences of their local clientele.
Yet, customers have the benefit of inspecting their available gold and silver pieces. Seeing a potential investment asset with their own eyes, as tangible as they come, can be a decisive point to purchase gold and silver for some investors.
However, local shops tend to have higher business costs than online dealers. That usually translates to higher premiums as well.
This brings about the question of how much to pay for physical bullion products.
Physical silver and gold bullion come available in different products, each bearing a weight, purity level, and mint of origin. These are responsible for different gold and silver prices.
To start with, precious metals have what is called a spot price. It is the current price per troy ounce exchanged on global commodity markets. Gold’s price and silver’s price are susceptible to spikes and falls during business days. These price fluctuations are normal and tend to occur according to supply and demand in mercantile and derivatives markets, like COMEX and LBMA, much like in the stock market. You may check the header of our website for updated, current spot silver and gold prices.
A premium is an additional price charged for a bullion product over its current spot price. These may vary according to factors such as the type of product, their weight, supply, and demand, as well as the overall gold and silver market and global conditions.
Bullion dealers charge premiums over their products to help maintain their businesses running.
Online dealers generally offer lower premiums when compared to local coin shops. This is because online dealers deal in volume and get better volume pricing from the wholesale market that they then pass on to the retail customer.
Next, let’s see what type of precious metals products are available in the market.
Silver and gold bullion products are minted in different weights, shapes, and sizes. It is important to note that these can help determine an investor’s profile.
Each brings about its own benefits as well as premium standards. This is due to factors like their mint of origin, production process, etc.
The most common forms of gold and silver pieces are coins, rounds, and bars.
Bullion coins are easily recognizable due to their intricate designs and their use as currency. They are legal tender within their country of emission and are generally produced by sovereign mints, such as the United States Mint. Take the case of the American Eagle Silver Coins and the Canadian Maple Leaf, some of the world’s most popular silver coins.
Buying gold coins or silver coins can be a simple process. They are easier to store and offer a more flexible way to manage your investment portfolio. In addition, due to their artistic designs, they have a semi-numismatic value and share a market with collectors.
Finally, bullion coins usually carry a higher premium due to their overall quality and notoriety. In any case, this also means that gold and silver coins may sell faster, should an investor wish to liquidate an asset.
Beginner investors may not know the difference between coins and rounds, be it in gold or silver. This type of bullion product is similar to the coin in shape and form, but it is not used in circulation and is not considered legal tender. Rounds bear no face value.
On top of that, most rounds are produced by private mints and are chosen by investors mainly due to their precious metal content. Their premiums decrease in bigger weights and are generally higher for small pieces.
Take the case of the 1 oz Silver Buffalo Round, a popular choice for investors of physical metals.
Bullion bars are a popular choice among experienced investors. Silver and gold bars have a rectangular, stackable form. People tend to think that buying gold bars or buying silver bars demand a lot of space to store them. However, you can find bars in varied sizes to accommodate your own storage capacities, ranging from 1 gram gold bars up to 1 kilo gold bars. The same goes for silver.
Because gold and silver bars have more varied sizes, look for the ones that are easier to fit your needs and possibilities.
Gold and silver bars are a convenient option for bulk investments. The premium on precious metal bars decreases as their weight goes up. This means that investors can acquire more ounces of metal for a lower price, in larger purchases. Silver bars such as the 100 oz Royal Canadian Mint are a popular choice among precious metal bullion investors.
Once an investor decides which tangible bullion pieces they wish to purchase, they must proceed to payment. The available methods of payment may vary from one bullion dealer to the other.
Nonetheless, more common options include using a credit/debit card, PayPal, e-check, and bank wire. Some dealers, like SD Bullion, also accept cryptocurrencies such as bitcoin as payment.
It is valuable to note that some methods may give a discount on your order, due to the nature of their operations. Payments through e-check, bank wire, and cryptocurrencies are commonly eligible for discounts.
That happens because these transactions represent a full transfer of funds from one account to the other. Albeit, these transactions may have a longer clearance period, since they require the services of third parties such as a bank.
On the other hand, while transactions using credit/debit cards may not be eligible for a discount, they have faster clearance periods. This alternative might also allow customers to pay off their charges over an extended period of time.
The process of buying gold and silver for physical possession is simple and straightforward.
Should you decide to buy gold, silver or other physical precious metals at the lowest premium here at SD Bullion, it will take only 3 steps.
You may decide to make your purchase online or over the phone with one of our assistants.
Freely browse our website. Once you decide which and how many silver and gold products to buy, add them to your cart. Proceed to checkout.
During the checkout process, enter the information regarding Shipping and select your desired method. Proceed to Billing to enter payment information.
After you review your information, proceed to place your order. It is as simple as that.
A confirmation email will be sent shortly after. Once payment is processed, your products will be on their way to you in 1 to 3 business days.
Over The Phone
Please call us toll-free at 1(800)294-8732.
One of our customer assistants will take your order and be ready to help.
An order confirmation will be sent via email. Once payment is processed, your order will be on its way to you in 1 to 3 business days.
The final step in the purchase of tangible gold or silver bullion consists of storage.
It is fundamental for investors to take into consideration the proper storage of their precious metal products. Such measures are vital to ensure that the metal stays in good condition, as well as reducing the risk of becoming a target for theft.
Owners generally resort to two different alternatives: storing their holdings at home or in a third-party company or bank. Both differ in matters of accessibility and safety.
The first option that generally comes to mind for bullion owners is to store their precious metal assets at home, outside the financial system. Storing or hiding their holdings at home gives total control over their assets, accessible at any given time. The use of a safe to store the physical metal pieces is a fairly common practice, but not exclusive. This is the case for most owners of a small to a medium-sized bullion investment portfolio.
Hiding your bullion in a secret location is one of the easiest and cheapest alternatives for investors. However, there are some cautionary steps that are fundamental to prevent any harm from occurring to your valuable pieces.
Bullion metals should be kept in safe conditions. Silver and gold investors must avoid damp locations, and store assets in places of low humidity. High temperatures along with humidity are able to produce vapor pressures of sulfur, which cause silver to tarnish. The use of desiccant packets can be effective in avoiding such harmful settings.
Check out the video below for more in-depth information:
Investors that prefer not to worry about the responsibility and precautionary steps of storing their bullion at home may use the services of a bank, safety deposit box, or third-party depository.
These facilities have all the necessary structures to house your physical metal, although being less accessible. Nevertheless, they ensure that your holdings are kept safe from the risk of theft and harmful conditions. It is important for owners to look for fully-insured depositories, as an added step of security, should anything occur.
Although this alternative tends to be more expensive than storing your precious metals at home, they can both be of greater added security to your investments as well as a convenient time-saving option. Storing in a depository also insures your precious metals. As home insurance policies do not cover precious metal values, many investors choose depositories so that their investment is covered by insurance as well.
Buy Precious Metals From SD Bullion
Taking your first steps into the bullion world can be a great but overwhelming experience. More so when looking to make a purchase of tangible silver and gold products.
SD Bullion offers a diverse number of silver and gold bullion coins, rounds, and bars. Enjoy the lowest premiums over the spot price online and safe, discreet shipping.
Please, do contact us should you have any questions regarding our products. We are available over the phone at 1(800)294-8732, or through the email email@example.com.