If you’ve been investing in stocks, bonds and other, similar, investment vehicles for a while then you already know some of the ropes. You’ve probably made a few killings and lost a few dollars as well, before returning to the fray. You should also know about diversification by now, too. One of the most popular diversification commodities is precious metals, which people often turn to for variety or, indeed, in uncertain times.
You might be thinking of taking your first steps in precious metals, so don’t take them in the dark. It’s an easy move to make, but you’ll feel more confident if you know a bit about what you’re doing.
First of all, remember that you’re still taking a risk
All forms of investment carry some risk, so make sure you check out the dealer you’re planning to buy your metals from before you part with any money. Look for established coin and bullion dealers and check out this website for more information. You also need to be ready for your stock to lose some value at some point, because that’s just the way it is.
Be prepared for criticism
If you’re one of the first people in your investment gang to try precious metals then you might get some sceptics giving you their opinion. Listen to them, as they may have some valid points, but don’t let them deter you. You have your own reasons for wanting to diversify into metals and it’s not necessarily to make a big profit. Seek out a metals investment community, too, as you’ll get more targeted advice and support there.
Make yourself comfortable as it can be a long wait
Investing in precious metals is playing a long game so if you’ve been used to day-trading, the idea of holding onto your treasures for at least ten years might be a bit mind-blowing. In the short term, however, precious metals are volatile, so there’s little point buying, transporting, storing and selling them within a short period of time. Buying precious metals is more like investing in property – it’ll gain in the long run, so just hang on.
Look for a reliable broker
If you can find the right dealer or broker you’re onto a winner because you’ve found a valuable resource for advice and help. Make sure you feel comfortable talking to them and not patronised or belittled in any way, no matter how small your first purchases are.
How can you spot a good metals dealer?
You’ll know you’re onto a good thing if your dealer:
- offers total transparency on fees, buying premiums, shipping, commissions and any other processing fees;
- is always pleased to talk to you and offer advice so that you expand your knowledge and horizons, even if the advice is not always what you want to hear;
- has a good buyback history – no quibbling or silly fees;
- has strong, reputable associates, third-parties and world-recognised insurers, and
- is accredited by the Better Business Bureau (BBB).