With financial unrest in a volatile economic climate, many have lost their trust in banks and investment firms and are looking at other options. That’s why investing in Precious Metals like Gold, Silver and Platinum is such an appealing proposition for many. However, investing in these materials is not something you want to jump into blindly. Before buying Silver online or looking into where to buy Gold bars, be aware of these three mistakes that many first time Precious Metal buyers make — and perhaps you can avoid a costly mistake.
• Failing to Compare Prices, Product and Service – There are hundreds, maybe even thousands, of sources for purchasing Precious Metals online. Each offers something a little different. First, make certain you are comparing apples to apples — i.e., the same product from different sources. Then, do plenty of research to educate yourself on the price of metals. Do your research when it comes to choosing the vendor you’ll buy from. Making sure your dealing with a reputable supplier will help to ensure you’re taken care of. Last, make sure you’re getting the service you deserve. Find out how the company ranks with the Better Business Bureau, what their reviews say and what‘s being said about them on forums. At the end of the day, price may not be everything if you’re not getting the service you deserve. A test purchase is a great way to try out a company before you spend your money with them. Make a small order to test the service, price and product. Then you can move forward confident in your decision.
• Buying Scrap Metals as a Sole Investment – While you may be able to sell an old ring or coins with a small amount of Precious Metal content as a way to raise a little cash, choosing generic Silver or junk Silver and other products as your main investment can make it much harder when you decide to cash out one day. Diversify your investment in Precious Metals. Buy what you like from a source you feel confident in. Look into products like Silver bars or find out where you can buy Gold coins and bullion or numismatic pieces. This will make it much easier (and more profitable) when you decide to sell.
• Not Diversifying – As the saying goes, “don’t put all your eggs in one basket;” this holds true with investments like Precious Metals. Precious metals are a long-term investment and should be only a part of your overall investment portfolio. You want to keep some cash available for your everyday purchases and other savings. That way you can weather any potential bumps in the road and hold on to your investment until a time when it will be best served for you and your family.
While there are potential pitfalls to investing in Silver bars, Gold bullion and other types of Precious Metals, there are many other reasons why it makes sense to invest at least some of your savings in these materials. Take the time to learn about these investments and make smart decisions — you’re sure to be pleased with the outcome.