If you’ve ever been intrigued by the prospect of owning real, tangible wealth in the form of precious metal products like gold and silver and bars and coins, this is the guide you need to start taking bullion investing seriously. Investing in bullion is not for everyone, but it provides security and stability in ways that no other assets can.
Bullion is real wealth – the stuff that humanity has used as the basis of its monetary system for thousands of years. The dominance of fiat currency is relatively recent in the grand scheme of things. For many, fiat currency remains an experiment. If you’re not content to keep your hard-earned savings in cash, which can easily lose its value thanks to inflation, bullion may just be the answer you’re looking for.
Follow these steps to get started with bullion.
1 Find a Bullion Dealer
The key to successfully investing in bullion is finding a reliable bullion dealer with competitive prices. Dealers like Global Bullion Suppliers compete based on several factors:
- They sell the most common and in-demand gold and silver bullion products, including coins and bars.
- They offer bullion products at competitive prices compared to their competitors.
- They support new investors and can help make investing easy.
2 Decide How Much to Invest at First
The next step is deciding how much money you want to invest in bullion. Overexposing yourself to a single asset is always a risk. A smart portfolio has a diverse range of assets. Bullion provides some much-needed counter-risks to stocks, as well as a degree of certainty and stability.
There are several factors that should go into deciding how much money to put into bullion:
- Don’t invest money you don’t have. Borrowing money can be expensive, thanks to the interest rates you have to pay. Limit your first investment based on available funds.
- A balanced portfolio will dedicate somewhere between five and 20% of its funds to bullion products.
- Your current and future financial goals. Bullion tends to be a long-term investment.
- Understand that you can invest more later. This can get you started immediately while giving you more time to learn about and appreciate the diversity of bullion products.
- Consider the physicality of bullion. You may need to spend more or less than you had planned in order to buy a 1 oz. gold bar.
3 Invest in Storage and Insurance
There is no substitute for owning your own wealth. When it comes to gold, there are investment options that do not include direct ownership, including ETFs. That just isn’t good enough for investors who understand the risks of losing their wealth in a crisis.
However, direct ownership comes with its own risks, including theft and damage. To mitigate these risks, you need two things: a home safe and insurance. A home safe will protect your bullion from theft. Only share your combination with one trusted person, and don’t talk too openly about owning bullion.
Next, make sure your bullion is insured. Bullion is not generally covered by most home insurance plans, and you will need separate coverage.
Investing in bullion isn’t complicated. Talk to a bullion dealer about getting started.
