The time is ripe for investing in bullion. The current economic conditions have made the stock market a nightmare, while rapid inflation means keeping your money in bonds or cash is a guaranteed way to lose value.
There are few clear answers about what you’re supposed to do to get ahead – or even stop losing ground. However, gold and silver bullion are promising investments. They have historically been used to protect wealth against inflation and to survive economic downturns.
The current conditions are leading a new generation of investors toward bullion, but some are hesitant to dive right in. If you’re reluctant to buy bullion because you’re not sure how it works, this guide should address all of your concerns.
1. You’re Only Making a Small Investment
At today’s prices, even a 1 oz. a gold coin can represent a major investment and one that may be beyond your willingness to spend. Despite inflation, you probably still want some of your savings in cash and other investment products that are also part of a balanced mix.
Instead, consider investing in silver. Silver offers many of the same qualities that gold has, but the price of silver coins is much more attainable. Silver is an excellent way for beginners to get a feel for bullion investing and learn the ins and outs before moving on to gold.
2. You Have Storage Concerns
On the other hand, you also have to consider physical storage. Often, bullion buyers will choose a home safe or a safety deposit box for their bullion purchase, but they can quickly run out of space if they only buy silver. If space is an issue, gold is much more valuable per ounce.
Another storage concern you need to address is insurance. Your standard home insurance policy is not going to cover gold bullion or coins. Gold is a durable metal, but it still needs protection against theft, fire, and flooding.
If you have gold holdings in your home, consider a special gold insurance policy or endorsement that will make sure you’re properly covered.
3. You’re Not Sure How to Sell It
Every good investment is one that you can easily sell. It has to have a certain amount of liquidity, which is the speed at which an asset can be converted into cash. A non-liquid asset is one that you may have to sell at a discount if you are in a hurry. Real estate is the perfect example of a non-liquid asset because it can take months to close on the sale.
Shares in a public company are considered liquid because you can quickly sell them on the stock exchange. Gold is somewhere between these two. You can’t sell physical gold with the same ease as managing your stock portfolio, but it doesn’t have to take long, either.
Selling with a bullion dealer is usually the quickest and most reliable way to secure a fair price for both gold and silver coins and bars. Bullion dealers are in the business of buying and selling gold and silver in physical form, and they’re usually the best way for you to buy and sell your bullion.