1) SHOULD I BUY THE GOLD AND SILVER ALL AT ONCE - OR INVEST OVER TIME?
Buying large quantities of gold and/or silver bullion means that you will probably get a discount. It is a large capital outlay and if the price falls after you have bought you will have lost money – on the other hand if it rises you will gain! If you buy over time dollar cost averaging says that you will get a median price – the lows cancelling the highs – and the highs cancelling the lows. It is a personal decision.
2) SHOULD I BUY GOLD BARS OR COINS?
Very much a personal decision – and depends on the ultimate aim of the investor. Coins are usually in smaller denominations and easier to transport. Bars are heavier, cost more, and are more difficult to transport and secrete. Bars have to be sold whole so they are less flexible in terms of short-term financial planning.
3) HOW DO I FIND THE RIGHT BULLION DEALER?
Research, research, and more research. Deal with somebody that you have an instant trust and affinity to. Speak to plenty of alternatives before making up your mind. Arrange a face-to-face meeting if possible – always at their offices so that you can check them out.
4) WILL I GET TAXED ON MY GOLD AND SILVER?
One of the beauties of gold and silver is the fact that you do not have to declare your holdings. In theory, you do. This is why the government hates gold and silver because it puts control back into your hands. It is virtually impossible to trace gold and silver once it has been sold.
5) WHERE DO I STORE MY PRECIOUS METALS?
If you are buying gold or silver over-the-counter you can store it anywhere you like. You can store it at home, at your place of work, you can bury it in the garden, you can keep it in a safe or a cupboard – wherever you feel fit. If it forms part of an IRA or 401(k) rollover you are legally obliged to keep it in a gold bullion depository vault via a third-party trustee.
6) HOW DO I RESELL MY GOLD AND SILVER?
Any gold broker or dealer – even jewellers – will be interested in buying your precious metals. Prices are published on the internet by the minute – so it is very easy to see what the gold or silver price should be at any time. Stick to a dealer or broker who has a regular premises – not somebody who sets up for a day at a time and then moves on.
7) WHAT ARE SOME THINGS TO LOOK OUT FOR WHEN I AM BUYING GOLD AND SILVER?
Do your homework. Know what the prices of gold and silver are before you buy – and before you sell. Ask, in advance, if delivery and insurance is included in the initial price. Research what reasonable commission is so that you know how much you are likely to be charged. Make sure that the price is fixed between order and delivery.
8) WHAT IS THE BEST WAY TO SELL MY PRECIOUS METALS?
Have an exit strategy from the moment you buy the metal. The broker you buy from will usually have a buyback policy – don’t just rely on that though look around at other brokers to see if you can get a better deal. Make a note of those deals and stay abreast of the market in case you need to sell quickly. As with buying – do your research well and thoroughly.
9) HOW MUCH SHOULD I PUT INTO GOLD AND SILVER?
There is no hard and fast rule to this – but any wise investor would diversify their portfolio. By this we mean making sure that it was not just precious metals that you were invested in. The precious metals part of the portfolio is recommended to be between 5% and 15% of your overall savings. Within this portion of your savings diversify between gold, silver, platinum, and palladium.
10) IS GOLD AND SILVER SAFE INVESTMENT?
Gold and silver are tangible assets. They exist. They are real. You can touch them. You can feel them. Their price will never fall to zero. There will always be a value attached to them. This cannot be said of many other assets – most especially paper ones. Gold and silver are as safe and asset, in this day and age, as anything.