It is easy to invest in precious metals.
But what you should be mindful of, first and foremost, is to opt for physical consignment of gold. Whether you store it in your personal vault or have it stored in a segregated depository, it does not matter as long as your priority in investing in precious metals is physically owning them (the metals).
If, however, you have a solid investing background, you may go with other investment vehicles. But for the sake of saving you a lot of troubles and most specially the money you worked hard for, go for physical delivery of your metals. That should be your strong position when it comes to precious metal investing.
Beware of the Pitfalls
- ETFs or exchange-traded funds – are traded just as you do with stocks. An ETF maybe a very good medium if you are into trading but may work against you big time if you chose to use it in investing. If you'll be purchasing an ETF remember that there is no gold or silver in it – just as mentioned, you have to get physical when it comes to precious metals.
- Pools and Certificates give you a "promise" of gold or silver and many are lured to buy them because they appear to be cheaper. These do not charge you fees for storing metals because simply no metals are actually stored. And they are funding their investments collected from the buyers.
- Using l everage such as options , margins , and futures – is too risky for an investor who does not know how to use it. And you are actually giving someone your money and invest it for you. You have to get educated if these vehicles are what you want to use.
- Numismatics. Still, you have to do your own verification, buying numismatics is for collectors (most of the time). If it is your hobby to collect these types of coins then go. But getting into it as an investment may not work well for you. You will be limited to buyers of rare coins who are only a few of them out there.
- Fraudsters, scammers and con artists. Beware of customer service pushing you to buy rare coins. If they are so pushy about it, make sure you do not end up buying the coins. Commemorative coin scams – if you watch an ad about such a coin, beware of it, must be a scam. If you remember the Freedom Tower Silver Dollar (claimed to be retrieved from Ground Zero debris), the con artist refunded more than $ 2 million to those who purchased the fake coin. Beware of scammers online selling slabbed coins . These people can buy slabs and slide coins already counterfeited. Numismatic coins are easily counterfeited than bullion coins.