Do’s and Don’ts for First Time Gold Buyers
It goes without saying that being a successful gold and silver investor isn’t easy, but If any of these thoughts sound familiar, then you’ve definitely come to the right place. The thing with precious metals is that people have a tendency to think that once the decision to purchase has been made the difficult part is over.
As most investors who have gone through this already know, deciding to opt for precious metals is only half the battle. Knowing what to avoid and how to proceed is a totally different story .
In order to figure out which deals are best for your investment strategy, here is a list a to do and not to do list for first time gold buyers
Many would-be investors see an advertisement, research the benefits of precious metals, and go with the company that’s promoting itself aggressively right away. While there’s nothing wrong with precious metals firms that want to put themselves in front of people, the onus is on you to do your due diligence. Don’t sign up with the first company you find and call it a day. Explore the possibilities and take time to evaluate each dealer you come across. A careful evaluation of each and every firm you come across allows you to make an informed decision .
You can gradually start crossing names off of your list. Did you find the company reps aggressive, evasive, or generally difficult to talk to? Rude customer service is always a liability and if you’re unable to get clear answers from people, there could be other problems at work beneath the surface.
Does the dealer carry the type of metals you want? If you’ve got your heart set on the Canadian Gold Maple Leaf for its .9999 gold composition, a .999 replacement coin may not be enough.
How does the company fit into your long-term plans? If your strategy is to eventually purchase more coins, can your dealer accommodate your needs ?
So you’ve done some serious thinking and you’ve picked your precious metals dealer. This is the phase where things go from abstract ideas to tangible actions. Since you’re the account owner, you’re not allowed to make purchases for your portfolio without an account manager. This is a potentially long-term professional relationship as you pursue precious metals more thoroughly. As such you’ll want to make sure that your account manager is someone you can love and respect .
This is a cynical but important question to ask. How much money do you have at your disposal? What can you afford to buy? You don’t want to find yourself competing with millionaires and billionaires over grade rare coins if you can help it. Put simply, are the premiums associated with collector coins within your budget ?
This is a perfect example of why it’s important to know why you’re purchasing precious metals in the first place. Although bullion coins and bullion bars are typically made from the same material, they have potentially different uses from an investing standpoint. For example, the stability of the bars may be tempting, but the cheaper cost and the reduced need for space make the bullion coins a sound investment as well.
Do you think you might go in an emergency and would like to liquidate your bars without difficulty?
Small bullion bars can be very helpful in this regard.
Are you thoroughly opposed to melting your assets in the future?
Are you looking to hedge against inflation and the uncertainty of the market today?
Strangely enough, it appears that size is the key to success when buying precious metals .
How will you be paying for your metals? The day you place an order isn’t the time to be hemming and hawing over your choice of funding. As a general rule, you can fund your investment with a 401K rollover. This is a common means of paying for this type of investments and many reputable dealers like Regal Assets offer assistance when it comes to the mechanics of rollovers. At the same time, however, you can also opt to contribute to your IRA annually. The choice is yours.
Okay. You’ve consulted your account administrator. You’ve narrowed down your tastes. You’re finally ready to take the plunge. This is the moment of truth ,all you do at this stage is ask your account manager to place an order for you. What do you do after that? Well, you wait for the delivery to come through. Usually ,if you choose the right dealer,the delivery will arrive one about one week or so .
Your job isn’t done just because you’ve received the coins and bars and things are going well. You still need to keep your bullions in safe storage. Not just to protect them from theft, but also because some of these are tougher than others. What determines the viability of keeping your coins or bars in a home safe is your insurance company. As an individual investor, you might not be able to insure all of your metals. For this reason, you’ll want to keep depositories and bank deposit boxes in mind .
Not to Do
Who hasn’t seen or heard the horror stories of senior citizens being taken advantage after believing what their dealer had to say? While it never hurts to trust the input of the professional you’re working with, you don’t want to end up overpaying because of the negative impact that’ll have on your bottom line. Even if you’ve worked with the company before, it always pays to be diligent when it comes to your investment portfolio. Don’t hesitate to shop around and get a ballpark estimate of what a fair price should look like .
In terms of strength and durability, not all gold is created equal. A .999 gold that has been combined with other elements can typically handle more abuse than a purer .9999 gold bar. What are your plans for the future of your bars? Is melting a distinct possibility under certain market conditions? Are you open to selling later on?
Put simply, you want your bars to be well-suited to the storage conditions you’ve arranged and you want to make sure that you have adequate space for it .
“It’s never the wrong time to buy gold” is a common sentiment that many investors buy into. However what the 2008 crisis has proven is that it’s always a good idea to consider the cultural and political landscape at the time of your prospective purchase. Capital controls can present problems for your gold bar investment if you’re living in or relocating to a place where the government has certain regulations in place.
You don’t have to become a fundamental trader overnight or anything like that since gold is still considered a number 1 investment. At the same time, however, you don’t want to be the investor who lost a quarter of the portfolio during a gold seizure .
“Nothing’s ever perfect”
“You can’t expect everything to go your way”
In terms of life, this is sound advice that more people could stand to learn. Within the context of selecting a precious metals dealer, however, you want to avoid using this rationale when you’re gauging the situation. You never know when those relatively minor signs could point to more serious problems down the road.
Red flags are there to save you pain and frustration. So you want to always keep your eyes open and critically evaluate what you’re being told in real-time .
Just because your gold firm isn’t terrible, doesn’t meant that it’s the right place for you as an investor. If you’re new to gold investment, it’s in your best interests to work with a company that’ll support you, inform you, and teach you how to spot worthwhile investments. A fantastic dealer is a well-oiled machine that can make the transaction smoother for everyone. Don’t play it all by ear if you don’t have to .
While there’s no question that precious metals give you a lot of leeway when it comes to your investments, it never hurts to take your time with it. There are thousands of dollars on the line and at the end of the day you want to make the right selection. You want this addition to your retirement savings to be the result of reasoned and thoughtful decision-making. Anything else could result in complications later on down the line .
While there’s no question that the experts have put time and effort into promoting precious assets diversification, it’s not a good idea to order either too much or not enough. The precise amount will depend on details like the rest of the items in your portfolio as well as your personal strategy, but as a general rule of thumb, what you’re going for is roughly 10%-30% of your portfolio being accounted for by “gold“. Consider a professional evaluation of your portfolio before deciding to rollover your IRA and make a purchase .
That’s a question that many people immediately start asking once they realize what precious metals have to offer on an investing level. Although the enthusiasm is certainly understandable, you don’t want to end up with anything less than the best investment possible. To speak with a company that’s noted for the way that it guides customers through the process and offers valuable information, discover the top rated gold dealers in USA today .
The Bottom line
As you can see, buying precious metals isn’t a question as simple as that. It’s a question of how willing you are to dig deep as you research companies.
Tired of getting lousy customer service?
Struggling to get honest answers out of your reps?