Key Takeaways:
- Before selecting any gold or silver pieces, identify your long-term financial goals.
- Authorized dealers work directly with government mints and top refiners, so their coins and bars are less likely to be altered or counterfeit.
- Physical gold and silver work well as long-term safety nets.
Physical metals like gold and silver have helped secure personal wealth for thousands of years, with their consistency and reliability making them a popular choice for individuals looking to weather market storms. Additionally, their universal acceptance offers a resilience that many modern assets don’t possess.
Buyers can acquire these metals in various forms to expand their personal collections or portfolios. In this guide, we’ll highlight some things to consider while navigating the precious metals market and how American Hartford Gold can help along the journey.
What Are Your Personal Goals?
Before selecting any gold or silver pieces for your collection, it’s a good idea to establish your long-term financial goals. Some acquire precious metals to be displayed in their homes, while others are looking to plan for retirement or safeguard their financial situation during economic uncertainty.
Aspiring collectors should perform in-depth research to develop an understanding of the market.
Physical Coins and Bars
Government-minted bullion coins, like American Eagles or Canadian Maple Leafs, are reliable assets and easy to identify. Many collectors appreciate the intricacies of each piece and the design updates that continue to surface, while practical buyers enjoy the weight of the metals and their high resale potential.
Bars usually give you the most value for your dollar since they don’t require as many steps during production as coins do. A bar from a trusted source should be marked with its weight, purity, and serial number, so you know exactly what you’re getting.
Digital Precious Metal Holdings
Some individuals want to acquire gold or silver but have no desire to hold the physical coins or bars. In these instances, the company lists exact ounces in the account holder’s name, and small amounts can be moved in or out almost as fast as money in an online banking app.
Another option is a pooled account. Here, several individuals own shares of the same large portion of metal. This setup lowers the overall cost, but each person won’t possess their own serial-numbered bars, which may be a dealbreaker for some. Selling can also take longer.
How Do You Verify Quality and Authenticity?
Counterfeiters will attempt to fool buyers into purchasing pieces they altered themselves, often earning hefty sums with their manipulative tactics. It’s important to take your time, do your research, and only purchase precious metals from verifiable sources that consumers trust.
Finding Legitimate Sources
Authorized dealers work directly with government mints and top refiners, so their coins and bars are less likely to be altered or counterfeit. They provide detailed receipts that list weight, purity, and batch numbers. Many dealers also offer a buyback guarantee in case the buyer changes their mind, offering a quick way out.
When searching for a reputable dealer, read customer reviews and make sure the fees advertised online match the final price you are asked to pay. Legitimate precious metals dealers are transparent about pricing. They should also be open to any questions regarding testing, storage, and shipping.
Screening at Home
Even experienced collectors perform quick tests on their coins upon arrival. First, they use a digital scale to confirm the metal’s weight.
Calipers help measure the coin’s thickness and width. Finally, a strong magnet can be used to expose fakes made using iron or steel with only a thin layer of gold or silver on top. For silver rounds, many collectors use the “ping” test.
The “ping” test involves balancing the coin on one finger and tapping it lightly. Real silver should ring with a clear, steady sound. Some prefer small electronic wand testers. These tools send a current through the metal to confirm if its conductivity matches that of authentic gold or silver. A wand can help spot counterfeits without scratching a coin’s surface and damaging the metal.
How To Develop a Long-Term Plan for Precious Metals
Gold and silver work well as long-term safety nets, which is why precious metals are popular among those planning for the future, with many opting to open a Gold IRA for retirement. Individuals interested in purchasing gold or silver should consider how much metal they want and how it fits into their larger savings plan.
Purchasing Over Time
A good way to build a portfolio is to purchase on a set schedule. For example, one may pick a day each month or every three months and add a one-ounce coin or small bar to their holdings. Regular purchasing helps even out price swings.
Once the buyer feels at ease, they may decide to switch to larger bars, which cost less per ounce.
Sudden cash boosts, like a tax refund or work bonus, can help speed things up. It’s good to decide in advance what portion of any extra money will go toward your precious metals portfolio. This rule keeps you disciplined but still ready for opportunities as they arise.
Acquire Gold and Silver With AHG
Individuals have relied on gold and silver for a very long time, each ounce of metal is tangible, and not affected by market uncertainty like traditional assets are. So for those looking to diversify their portfolio, precious metals can be a valuable addition.
At American Hartford Gold, we are committed to helping clients acquire pieces that align with their personal financial objectives. We help plan for the long term so you can have peace of mind in the short term.
FAQs
Is it better to start with gold or silver?
Gold holds a lot of value, even in a small piece, and its price fluctuates less than silver. Silver, however, costs less, making it a smart choice for those who are new to the precious metals market and not looking to spend too much upfront.
How much metal should I acquire?
Most people put about five to ten percent of their cash savings into precious metals, but the exact amount depends on individual comfort levels, income, goals, and industry knowledge. It’s good to start small if you are still learning how the market works.
Do coins or bars resell more easily?
Well-known bullion coins often sell quickly since buyers can easily identify them. Large bars are cheaper per ounce, but you may need to cut them or perform extra testing before you can sell.
Sources:
Pooled Funds: Definition, Examples, Pros & Cons | Investopedia
