Mistakes to Avoid when Buying Silver and Gold Bars
By BullionMentor on January 31, 2024
Silver and gold are valuable metals for making jewelry, coins, electronics, and photos. Ancient societies used silver and gold t o make ornaments, religious artifacts, etc. In the not-so-far history, countries used to produce silver and gold coins for regular currency circulation.
The limited mining of these two metals has added to their investment value. Besides silver and gold bonds and stocks, people nowadays have started acquiring bullion products like silver and gold bars.But there are some smart rules for buying silver and gold bars.Let's dive deeper and understand mistakes to avoid when buying silver and gold bars!Silver Bars
For millions of years, people have been fascinated by silver bullion bars. Today, reputable companies like Scottsdale Silver USA, Perth Mint in Western Australia, PAMP in Switzerland, and Provident Metals in the USA provide silver bars.All these bars meet high standards and are 99.9% pure silver.
For many, silver bars are considered a form of exchange. These are durable, portable, have practical value, and can't be created by government decree (fiat). Over the past three decades, the demand for silver bars in industries has grown due to silver's exceptional properties like strength, flexibility, ductility, thermal conductivity, and high reflection of light. Silver bars played a significant role in the economy of the United States from 1792, when Congress based legal tender on the silver dollar, until 1965.Besides its industrial uses, silver bars also find application in healthcare products because of their unique antibacterial properties.Silver is becoming rare, with over 95% of all mined silver throughout history already consumed for industrial purposes.Some investors keep actual silver as precious metals bullion bars for its inherent value.
Gold Bars
When you think about a gold bar, you probably imagine something substantial, shiny, solid, square, and pure – a valuable brick. That's how gold bars are today. However, that wasn't always the case. It was actually cast ingots with different shapes and textures.
Gold bars are generally uniform in size and shape. Before 1986, U.S.-made gold bars looked like rectangular bricks. Today, they're trapezoidal, following the long-established international standard for bars. Marks on the side of a gold bar provide info about its production, like the "melt" (the molten gold used), fineness, and purity. A gold refiner's stamped seal can show where the gold was made. Some precious metals bullion bar brands also use registeredserial numbers or hologramsas security measures.Here are Mistakes to Avoid When Buying Silver and Gold Bars
No matter which metal you are choosing for investment, here are some crucial mistakes to avoid when buying silver and gold bars:1
Ensuring that the gold or silver bar you buy is genuine and worth what the dealer claims is essential. Learn about methods to verify gold's purity and authenticity. You can check if a bar gets attracted to a magnet (the real one isn't magnetic). Look for mint marks and unique serial numbers on the Precious Metals Bullion Bars. Make sure you are receiving a certificate of authenticity for the product.Not Checking the Purity and Authenticity
2
After you own silver or gold bars, keeping them safe is essential. Gold and silver are valuable and delicate, easily damaged if not stored right. Improper storage can lead to scratches, dents, and other issues, reducing the bar's value. Keep precious metals bullion bars in a secure, dry place. Avoid storing them where moisture or extreme temperatures can harm the metal. Invest in a high-quality, fireproof home safelock. You can also use a bank's deposit box or third-party storage facility. Choosing professional services offers better protection against theft, loss, and damage. Remember to insure your billions.Not Considering Storage and Security
3
Before buying gold or silver bars, do your homework. Look up the daily precious metal prices on financial news sites like NYGoldCo. Keep an eye on economic, political, and social factors affecting gold prices by reading financial news. If you're new to bullion buying, talk to a professional for guidance. Avoiding these steps might lead to overpaying or getting fake precious metals bullion bars. Stay informed for a wiser purchase!Lack of Research
4
Gold or silver can stabilize your portfolio, but it should be just one part. While billions can provide reliable returns, they are not high-growth assets. Diversifying your investments across multiple assets is key for balancing risk and reward. We recommend allocating 5% to 10% of your portfolio to precious metals and the remainder to other assets (stocks, bonds, and real estate). This approach helps create a well-rounded investment strategy.Not Diversifying Your Portfolio
5
Avoid falling for high-pressure sales tactics or getting caught up in the excitement of a bar being rare. Take your time, and thoroughly inspect the metal yourself before making the decision. You can also compare prices, premiums, and shipping charges on all your favorite bullion products from various reputed dealers at BullionMentor.com. Check out our ‘Spot Price’ section for spot price alerts.Chasing the Price
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A common mistake when buying precious metals bullion bars is not knowing the current market value. This can lead to overpaying or missing out on good deals. Understanding the factors influencing precious metal prices helps you decide the best time to buy. Unlike stocks, timing isn't as important; getting a fair price matters more. Monitor the gold market, check real-time prices, and be aware of reasonable premiums.Failing to Monitor Market Conditions
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Buying gold and silver bars from unknown online sellers can be risky. It can lead to wasting your money on fake or impure metals. To avoid this mistake, it's vital to purchase bars from reputable and well-known dealers. Research the dealer's reputation and read reviews from previous customers before making any purchases. This is the simplest way to ensure the authenticity and quality of the precious metals bullion bars you are acquiring.