Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
Gold Price Breaks Down, Waving Good-bye to the 2019 Rally - 12th Nov 19
Fed Can't See the Bubbles Through the Lather - 12th Nov 19
Double 11 Record Sales Signal Strength of Chinese Consumption - 12th Nov 19
Welcome to the Zombie-land Of Oil, Gold and Stocks Investing – Part II - 12th Nov 19
Gold Retest Coming - 12th Nov 19
New Evidence Futures Markets Are Built for Manipulation - 12th Nov 19
Next 5 Year Future Proof Gaming PC Build Spec November 2019 - Ryzen 9 3900x, RTX 2080Ti... - 12th Nov 19
Gold and Silver - The Two Horsemen - 11th Nov 19
Towards a Diverging BRIC Future - 11th Nov 19
Welcome to the Zombie-land Of Stock Market Investing - 11th Nov 19
Illiquidity & Gold And Silver In The End Game - 11th Nov 19
Key Things You Need to Know When Starting a Business - 11th Nov 19
Stock Market Cycles Peaking - 11th Nov 19
Avoid Emotional Investing in Cryptocurrency - 11th Nov 19
Australian Lithium Mines NOT Viable at Current Prices - 10th Nov 19
The 10 Highest Paying Jobs In Oil & Gas - 10th Nov 19
World's Major Gold Miners Target Copper Porphyries - 10th Nov 19
AMAZON NOVEMBER 2019 BARGAIN PRICES - WD My Book 8TB External Drive for £126 - 10th Nov 19
Gold & Silver to Head Dramatically Higher, Mirroring Palladium - 9th Nov 19
How Do YOU Know the Direction of a Market's Larger Trend? - 9th Nov 19
BEST Amazon SMART Scale To Aid Weight Loss for Christmas 2019 - 9th Nov 19
Why Every Investor Should Invest in Water - 8th Nov 19
Wait… Was That a Bullish Silver Reversal? - 8th Nov 19
Gold, Silver and Copper The 3 Metallic Amigos and the Macro Message - 8th Nov 19
Is China locking up Indonesian Nickel? - 8th Nov 19
Where is the Top for Natural Gas? - 7th Nov 19
Why Fractional Shares Don’t Make Sense - 7th Nov 19
The Fed Is Chasing Its Own Tail; It Doesn’t Care What You Think - 7th Nov 19
China’s path from World’s Factory to World Market - 7th Nov 19
Where Is That Confounded Recession? - 7th Nov 19
FREE eBook - The Investment Strategy that could change your future - 7th Nov 19
Is There a Stock Market Breakout Ahead? - 6th Nov 19
These Indicators Aren’t Putting to an Economic Resurgence - 6th Nov 19
Understanding the Different Types of Travel Insurance - 6th Nov 19
The Biggest Gold Story Of 2020 - 6th Nov 19
Best Money Saving FREE Bonfire Night Fire Works Show Sheffield 2019 - 5th Nov 19
Is the Run on the US Dollar Due to Panic or Greed? - 5th Nov 19
Reasons Why Madrid Attracts Young Professionals - 5th Nov 19
Larger Bullish Move in USD/JPY May Just Be Getting Started - 5th Nov 19
Constructive Action in Gold & Silver Stocks - 5th Nov 19
The Boring Industry That Hands +500% Gains - 5th Nov 19
Stock Market Chartology vs Fundamentals - 4th Nov 19
The Fed’s Policy Is Like Swatting Flies with Nuclear Weapons - 4th Nov 19
Stock Market Warning: US Credit Delinquencies To Skyrocket In Q4 - 4th Nov 19
Stock Market Intermediate Topping Process Continues - 4th Nov 19
Stock Market $SPY Expanded Flat, Déjà Vu All Over Again - 4th Nov 19
How To Buy Gold For $3 An Ounce - 4th Nov 19

Market Oracle FREE Newsletter

How To Buy Gold For $3 An Ounce

Three Rules for Making a Winning Investment in Precious Metals

Commodities / Gold & Silver 2019 Apr 15, 2019 - 06:30 PM GMT

By: MoneyMetals

Commodities

The questions first-time precious metals buyers ask most often are "what should I buy?" and "how do I get started?" We have covered these questions many times over the years, but they are worth reconsidering from time to time.

The very first rule of precious metals investing is to avoid collectible coins and buy low-premium bullion (non-collectible) products instead. Well, to be precise, it is actually those many shady rare coin dealers one needs to avoid.

The dealers to avoid are usually the ones heavily marketing on TV and radio using celebrity spokesmen, looking for inexperienced buyers. They know what buttons to push. The ads talk a lot about real issues – concerns such as the massive federal debt and the potential for U.S. dollar depreciation to wipe out savings and wealth.


People call them, looking to do something smart and protect themselves by acquiring some physical gold and silver.

Then the fast-talking salespeople go to work. They try and switch people from making a simple investment in easy-to-understand bullion products, into buying dubious collectible and proof coins with a massive markup.

They talk about the huge potential for rare coins to appreciate in value and then sprinkle in some bogus advantages to make these items look like a better option than lower priced bullion.

Our Specialists have heard it all from clients who suffered the sales pitches of these shady operators: lies like rare coins can’t be confiscated; they are tax exempt; they have a record of outperforming bullion as an investment; bullion purchases must be reported to the government; etc.

All of these claims are nonsense, but thousands of newbie precious metals investors are getting pitches like these every day.

Too many of these poor souls end up paying 30% to 50% above what the coins are actually worth, and sometimes even more. When they start that far upside down in their investment, who knows when they will break even?

Buying highly liquid bullion coins, rounds, and bars close to melt value is the best way to go, period.

The second rule for making a good investment in gold and silver is just to get started.

Conventional investment advisors and stock brokers like to poke fun at metals as an investment. They aren’t serving their clients too well.

If the financial establishment stopped worrying about the commissions and fees they get for pushing stocks, bonds, and mutual funds (i.e. paper), they might let clients know gold has vastly outperformed the S&P 500 since 2000…

…they might acknowledge the U.S. government is insolvent, the future of the U.S. dollar is grim, and that these things have vast implications for the fragile and deeply interconnected global financial system.

People need to prepare and they need to move quickly.

Anyone making a clear-eyed assessment needs to acknowledge the 2008 financial crisis may just have been a warmup for the true reckoning yet to come.

Putting 100% of an investor’s eggs in the Wall Street basket is not a wise proposition, but that seems to be exactly what most financial planners and brokerages are advocating.

It is not fashionable to worry about risks such as uncontrolled inflation, banking crises, and 50% stock market corrections at the current moment. Stocks are flying high and metals are cheap.

However, these risks, plus others, are real and growing. Now is not the time to be complacent.

The third rule for making a sound metals investment is to choose your dealer carefully. Do a bit of due diligence before placing your order.

Price is a consideration when comparing dealers. However, price should definitely not be the only consideration.

Buyers make payment in advance of receiving the gold and silver they order. That means the dealer’s reputation and strength should also be evaluated.

Getting the lowest price will be scant comfort if the dealer doesn’t deliver the metal. And there have been some ugly blowups of "low-price leaders" in our industry.

The BBB offers ratings and customer reviews for most dealers. Other websites do as well.

A quick internet search can reveal a lot about how these businesses treat their clients. Pay special attention to any pattern of complaints around dealers either not delivering or being slow to get orders shipped.

By Clint Siegner

MoneyMetals.com

Clint Siegner is a Director at Money Metals Exchange, perhaps the nation's fastest-growing dealer of low-premium precious metals coins, rounds, and bars. Siegner, a graduate of Linfield College in Oregon, puts his experience in business management along with his passion for personal liberty, limited government, and honest money into the development of Money Metals' brand and reach. This includes writing extensively on the bullion markets and their intersection with policy and world affairs.

© 2019 Clint Siegner - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules