Today’s investors are seeking investment options other than just traditional equities. Due to this, they are diversifying by using more tangible assets such as gold, silver, and other types of precious metals.
Precious metals can offer many rewards within one’s retirement account – starting with the fact that they provide the opportunity for both short and long term growth. These assets have been known for centuries as a symbol of wealth, and are anticipated to continue doing so in the future.
In addition, due to its negative correlation to the movement of stocks, gold in particular has also been seen as an ideal method of combating inflation. Many retirees, seeking a way to keep their future income on pace with the cost of living, are now finding that gold provides them a perfect solution.
Purchasing Gold and Other Metals for Retirement
Gold, silver, and other precious metals can be purchased for investment either in a regular investment account, or within one’s retirement account such as an IRA (Individual Retirement Account).
When purchasing precious metals, they can be obtained in several different forms. These include bullion, bars, and coins. The form in which they are bought by an investor will primarily depend upon the individual’s financial goals, as well as whether or not the investor intends to store the metals personally or have the metals stored elsewhere.
How to Determine Good Quality Gold and Silver
When searching for good quality gold and silver bars for sale, there are several criteria to look for. These should include:
- Size of the Bars – One of the most important factors to consider is the actual size of the bars. Gold and silver come in various sizes, as well as different weights. For instance, these bars are typically sold in troy ounces, and are offered in increments of 1 ounce, 5 ounces, 10 ounces, and 1,000 ounce bars. There are also some mints that will offer gold and silver bars for sale in smaller fractional or gram sizes.
While there is really no specific method for purchasing gold and silver bars, because of the fabrication costs, the smaller the bar that is bought, the larger the premium will be per ounce. Therefore, for example, a 100 ounce silver bar will be less costly on a per ounce basis than a 10 ounce silver bar. The best size bar to purchase will really depend upon an investor’s reasons for buying. This will typically center on long or short term investment goals or collection purposes.
- Precious Metals Dealer From Where the Bars Are Purchased – Another important factor to consider is where the gold and silver bars are purchased. Precious metals may be purchased in a number of different ways, including via physical retail stores and banks, as well as online from any number of precious metals dealers’ websites. Today, many investors have opted to purchase their metals online – which can offer a great deal of ease and convenience. However, it is essential to perform due diligence prior to purchasing anything via the Internet – and this is especially the case when it comes to investments such as gold and silver.
Online metals dealers will typically describe each of the metals that they have for sale, as well as show a photo of the metal, so that the investor will know what he or she is getting. When comparing different dealers, it is a good idea to research the background and the reputation of each prior to making a purchase. For example, finding out whether or not the dealer is accredited with the Better Business Bureau (BBB) is always a good idea. Here, it can also be determined if the business has any recent complaints filed against it. Product selection and customer service are also important criteria when deciding upon a precious metals dealer to work with.
- Ease of Liquidity – The ease of liquidity is another important factor when deciding upon good quality gold and silver to purchase. This refers to the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price. In other words, it is important that the gold or silver bars that are purchased can be quickly converted back to cash. With this in mind, it is always a good idea to stick with highly recognized and respected brands of gold and silver.
Buying Gold and Silver Coins
Investors will also oftentimes purchase gold and silver coins for investment, or to add to a collection. There are two primary types of gold coins to be considered. These are bullion coins and collector coins.
Investors will typically purchase gold bullion coins. This is because the prices of these particular coins are generally more transparent, as they are based upon the market price of physical investment grade gold. In most cases, the investment grade coins that are purchased and sold by investors today will have a gold content of 90 percent or more, and they are usually between 22 and 24k.
Collectors of gold coins, conversely, will usually purchase numismatic gold coins. This is because the values of these rare coins are typically more subject to factors that are outside of the gold spot price, similar to the pricing of collectible art.
How to Best Purchase Coins for Investment
There are several ways in which to purchase silver and gold coins for investment. Today, many investors choose to do so online through one (or more) of the many precious metals dealers who buy and sell items via the Internet.
Similar to with purchasing bars, it is important to compare the background and reputation of the precious metals dealer prior to making any type of gold or silver coin purchase. This includes reading any customer reviews and testimonials, as well as researching whether or not the company has had any past complaints that have or have not been resolved.
Once a reputable precious metals dealer has been found, it is a good idea to contact the company and speak with a customer service representative in order to determine their knowledge of the overall marketplace, as well as with their investment analysis skills.