Buy Gold and Silver - 3 Things You Must Know
So you are ready to buy gold and silver! You've seen a ton of commercials on TV pounding the importance of physically owning your precious metals, and you've heard the myriad of reasons why you must own it. You've made the decision... you're ready now to start buying! Now what?
Do you know how to ensure a safe and confident purchase? I'm
going to make this really easy and simple for you. There are three things you
really must know to buy your gold and your silver the right way and with confidence.
You do want to buy with confidence, right? OK, so here are three essential
things you need to know.
Authentication: You need to know how to authenticate, so you
know it is real. It would really be a shame if you finally went out and bought
some bullion, only to find out later that it wasn't even real. To avoid this
pitfall, you need to know how to authenticate your purchases before you buy.
The subject can get deep and it is not realistic to go into the pros and cons
of the various methods for authentication here, but I do want to briefly share
what those methods are so are aware of your choices. There are three ways you
can test the authenticity of your bullion... those methods are chemical
testing, electronic testing, and physical testing. The testing methods you
choose will be based on the types of purchases you are making, the volume of
your purchases, and your budget for testing (particularly, some of the
electronic testers can be pricey). Chemical and electronic testers are pretty
much what you'd expect them to be. Physical testing includes testing weight,
size, and sound (yes, sound) of the bullion you are testing.
Valuation: You need to know how to determine value, so you
don't overpay. To determine value, you must know the weight, the purity, and
the trading price (known as the spot price). Weight is straight forward and is
a measurement of the weight of a given piece of bullion. But weight is only
part of the equation... we need to also know how much of the piece is pure. For
instance, if a piece of silver bullion is 50% pure, then the silver content
would be 50% of the weight. Once you know how much silver (by weight) is in the
piece, you can easily figure the value using the spot price. Note that trading
prices vary slightly based on premiums charged by dealers. I just cannot over
stress the importance of your ability to determine value so you can make smart
buying (and selling) decisions.
Strategy: You need to understand your own strategy,
essentially the real reason why you are buying these precious metals in the
first place. This is more important than you may initially think because it
will help you choose the correct bullion. Bullion comes in many different
sizes, shapes, and value, and you will need to make purchase choices based on your
objectives. Your choices could differ if you are buying for wealth protection,
or if you are buying to hedge against currency fluctuation, or if you are
buying to prepare for an economic meltdown. Whatever your reasons, you must
know why so you can make the right choices. And here's an extra tip: You'll
also need a strategy for storage.
Buying gold and silver is simpler than you think, but one
mistake can cost you big time. After all, precious metals are valuable, and
your purchases can (and should) really add up. I hope you found this article
helpful on your journey.
You can always learn more essentials about how to buy gold
and silver on my informative blog, or even ask me a question there!
Thanks for reading. For more information on the right way to
buy gold and silver, visit my blog using the link above.
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