You want to build a valuable collection, so you are willing to make investments in precious metals such as gold or silver. Are you ready? Since centuries, gold and silver has been a reliable way to preserve wealth. In times of economic instability, investors tend to purchase physical gold or silver as an asset that can be used for protection.

This blog will cover the reasons why you should buy gold or silver in physical form, how to purchase gold physically, and the common pitfalls to avoid when investing in precious metals.

The factors to consider when buying physical gold or silver

The following are factors to consider when buying gold or silver in physical form:

Tangible Asset:

If you’re ready to buy gold or silver in physical form, you can actually hold the assets.
Gold and silver are intrinsically valuable, unlike expensive bonds and stocks that are similar to paper promises.
The health of the market or a firm’s attitudes aren’t able to affect the price of gold and silver.

Hedging against inflation:

Gold and Silver have historically been considered to be excellent inflation hedges.
The price of precious metals increases as the value of paper money declines.
By buying gold and silver in physical form, you can increase your purchasing power.

Diversification:

Diversifying your portfolio with physical silver and gold can be achieved by incorporating them into it.
The precious metals are the only ones that move in the opposite direction of the stock exchange, so they help to balance your portfolio when the market is down.
Buying physical silver and gold can help you reduce risk while increasing your investment stability.

A safe haven for economic insecurity:

Investors always seek out gold and silver during times of economic uncertainty as they are considered safe havens.
This has also been true during financial crises and times of geopolitical tensions.
You can have the peace of mind that comes with knowing you are investing in a solid store of value by purchasing physical gold or silver.

The best method to buy physical gold and Silver

Are you planning to purchase physical gold or silver? Consider these factors:

Silver and gold coins:

Physical gold and silver coins are one of the easiest and most convenient ways to purchase physical gold and Silver. The market offers gold and silver coins in different denominations that are accessible to all budget sizes. These coins, which are widely collected, can be easily traded or sold.

Bars of gold and silver:

Gold and silver bars are a great option for those looking to buy physical gold. The bars are available in different sizes, from 1 ounce to large 1-kilogram. Buying gold or silver in large quantities can often result in lower prices per ounce compared to buying coins.

Reputable dealers:

Be cautious when buying silver and gold from trusted dealers. Look for dealers who have transparent pricing and positive reviews. Close the deal that looks good, because it could be part of a scam. It is only possible to do this after establishing trust with an honest dealer. They can offer assurances and smooth future transactions.

Do you understand how to buy physical gold and Silver?

How can you avoid making the same mistakes when investing in precious metals as others?

These are the mistakes that people make when investing in precious metals:

Does not represent proper research:

Research is the biggest mistake that people make when investing.
When investing, be sure to understand market values, the price of gold, silver, and the current price for coins.
Knowledge is power. Make informed decisions.

Do not consider storage costs when calculating your storage cost:

You should store your physical metals (gold and silver) in a safe storage container or box.
It is a cost-effective way to keep precious metals secure.
If you are storing gold at home, or buying silver in a professional facility or even at your own house, it is important to calculate the costs and the return on investment.

Beware of scams:

Lack of information is the main reason for scams. Unfortunately, scams are common on the precious metals market.
Beware of sales tactics that are high pressure, such as promises of guaranteed return or those that demand upfront payments to dealers.
Avoid scams by doing your research and buying from reputable sources.

Confusing paper gold with physical gold

You need to understand the differences between physical and paper gold.
Paper gold is made up of ETFs and Gold Mining Stocks that represent ownership but do not allow physical possession.
Paper gold, on the other hand is convenient, offers liquidity but does not offer security or tangible assets benefits like physical gold.

Paper gold vs. Paper gold vs. Physical gold

To understand the differences between physical gold and, you need to know what they are.

Security and ownership:

You own tangible assets when you buy gold. It gives you a simple way to control your gold and lowers counterparty risks. Paper gold, on the other hand, adds third-parties, while your investment is only secure based on entities that manage power.

Liquidity:

Paper gold is more liquid than gold. The paper gold is easy to shape, and it’s quick to sell or buy on financial markets. Physical gold is more difficult to sell because you have to locate a willing buyer that will pay current market prices.

Insurance and storage:

To protect your gold from theft and damage, you need to store it safely. As paper gold is stored electronically, there are no concerns with it.

You should take the right steps when buying physical silver and gold. This is for people who want to protect their wealth, diversify portfolios and avoid economic uncertainties. Understanding the advantages of gold investments, selecting the best method to purchase gold and avoiding mistakes will help you make precious metals investments.

The bottom line is that buying gold or silver in physical form provides an asset you can hold. If you’re ready to buy physical metals, Cash for Gold are the most reliable hard-metal investors in the New Zealand.

Why buy physical gold and silver?