Precious metals investing can be very a very exciting experience if you are just starting out, but there are several pitfalls you have to avoid before buying gold and silver. I’ve compiled a list of what I believe are the 5 most essential things you must know before investing your hard earned money.
• Beware Of Numismatic Coins – Numismatics is the collecting of rare and graded coins. If you are focusing on precious metals investing, then you want to avoid these coins due to the high costs involved.
• Only Buy Bullion Coins or Bars – Bullion simply means that the coins or bars produced are pure gold or silver, and are produced in mass. Bullion products are simply made for investment purposes, allowing you the most value when buying gold and silver.
• Compare Different Gold Dealers – This may sound obvious, but many people get emotional about precious metals investing and settle for the first place they find. Doing this is a recipe for getting ripped off, and I can tell you don’t want that happening to you.
• Diversify Your Gold and Silver Holdings – Gold investing is no different than any other investment market. You want to make sure you buy an assortment of gold and silver coins from different government mints and mining companies.
• Buy Different Denominations of Gold Coins – There are 1/10th ounce, ¼ ounce, ½ ounce, and 1 ounce coins available. You don’t want to purchase all one ounce coins because if the gold price skyrockets, you may not want to sell the entire ounce of gold at once.
Knowing what to do and when to do it is 90% of the battle when investing. More importantly though, is knowing why you should invest in gold and silver during a down economy.
Source by Garrett L Strong
Precious Metals Investing - 5 Things You Must Know Before Buying Gold and Silver
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