Are you on the verge of buying gold and silver for the first time? Congrats if so. I recall my anxiety when making my first, second, and third purchases and certainly understand your doubt. You are wise, especially in this day, to question the decision to invest money in metal or anything else for that matter. Today I want to breakdown the first steps in metal ownership but also mention there are many ways to accomplish wealth preservation and invest in metal. This is simply the way I would do it if just getting started. At post’s end I will fill you in on what, and why, I’m buying now.
I’m assuming you’ve invested plenty of time and research on physical precious metal. You agree something is not right with this whole recovery nonsense and truly believe currencies cannot be printed into prosperity. If so we are ready to embark on the oldest path of real money, gold and silver. The first step to metal ownership is somewhat like buying a new puppy. Where are you going to keep it while you’re at work or away? Storage is huge since gold can walk away without any identifying features to it. Your bank will rent you a safe box suitable for storage if physical ownership is not for you. The key is to lockup your metal regardless if home or away.
Deciding what you’re buying is the second step to owning precious metal. This is important since some precious metal dealers will sell you what is in their best interest not necessarily yours. Most metal we recommend has low premiums and profit margins are slim for the seller. Dealers will prefer you buy something a little more profitable (for them) but remember this is your money we are spending here.
Since you are just getting started I recommend buying bullion coins either gold, silver, or both. Gold bullion coins can be bought for as little as $200 (1/10 ounce) to as high as $1800 (1 ounce). Silver bullion is usually sold by the ounce since silver is much more affordable than gold. American Eagles and Canadian Maples are very popular and easy to resell when the time comes ( you will want to sell someday trust me). I recommend mixing ownership up a little but silver is an extremely easy way to get your feet wet. Decide what you’re buying before shopping.
NOTE: Leave the rare coin market alone until you become very familiar with precious metal.
Now we are getting to the good part. We know where we will store it and what we want to buy, right? Now it’s time to bring home the most universal currency ever to exist, gold & silver. Timing the market is much more important to your confidence than your profit. Nothing is more disheartening than buying metal only to see it tank a few days, or hours, later. I can tell you from experience this is not as big a deal as it seems. Soon your metal will be off and running at least if fiscal insanity continues this trend.
But we want you to get the best bang for the buck and this will require patience on your part. Right now appears to be a fantastic time to invest in gold and silver. Why? Because last month both metals where nearly 15% more expensive than today. This “dip” creates a perfect buying time since we know metal has gone beyond the purchasing threshold of today (prices move on emotion as much as anything). Like I said, this is more about your confidence than anything else. In the long-term the price paid will mean very little compared to the amount owned.
Great, now we need to decide where you feel most comfortable buying metal. Local coins shop? Internet brokers? Pawn shops? Ebay or Craigslist? All viable options many folks use everyday. I like using my local coin shop for small purchases ($1000 – $2000) and online brokers for larger ones (check out Gold Shark for online bargains). Online precious metal transactions are very safe but you will anxiously wait for your new metal. All online metal is insured so rest assured one way or another you are covered.
WHAT I’M BUYING:
For what it’s worth I’m still buying every month sometimes paying more than needed. My last few buys have been in silver consisting of American Eagles, Canadian Maples, and Philharmonics. My last gold purchase was American Eagles since they seem to be very common, easy to value, and easily traded when the time comes.