Gold Investing Tips
Buy low, sell high. Chances are, you’ve already bought low and didn’t even know it. Assuming you were an adult 20 years ago, think back to the time when you went to the mall and bought a cheap pair of 14-karat gold earrings, a ring or a chain. Prices were low back then, but not because gold wasn’t valuable. Gold prices are directly linked to inflation, and if you bought gold cheap in the 1980s and 90s, it was because the U.S. dollar was strong. Now that the dollar is weak, you can sell any gold jewelry you no longer use and make a nice profit, assuming your jewelry is not gold plated.
Buy high. If you are interested in getting into gold tangible assets, such as gold bullion or high karat gold jewelry, you can still shop around for deals. Pawn shops and estate auctions continue to be sources for good prices. You can also purchase gold bullion and coins directly from precious metal mints and the American Precious Metals Exchange. You can store your gold in a bank safety deposit box, or keep it handy to sell at fast-paced retail investment gold auctions.
Sell higher. You can sell your gold at today’s market prices or higher by selling directly to gold buyers at online auctions. To get the best price for your gold, pay close attention to daily price fluctuations and the gold’s retail price. As long as you are patient, you can get the price you want and make a profit.
A warning about quality. Don’t let the shiny nature of gold fool you. Read listings on retail store websites and on eBay carefully. Know the seller’s reputation and return policy. Be advised that gold-plated bullion, coins and jewelry, often sold to novices as real gold, are worthless. As a serious investor, you should consider purchasing a gold testing kit. The kit allows you the freedom to buy and vouch for older gold pieces that may not be stamped.
Silver Investing Tips
Set aside at least $50 cash per week. It is important to use cash, rather than credit, because by purchasing silver with cash, you are increasing the value of your paper money. Fifty dollars pays for an ounce of silver at market rate, plus shipping and handling if you buy your investment silver online. Build your position by purchasing at least one ounce of silver per week.
Shop for fine silver bullion, coins or jewelry by the gram or ounce. You can purchase silver bullion and coins online from mints that sell silver directly to the public. Such mints include, but are not limited to, the United States Mint and Northwest Territorial Mint. You can also purchase silver from the American Precious Metals Exchange, commonly known as Apmex.com, and on eBay.
Store your investment silver for future sale. Investment silver bullion and coins come in special containers to reduce oxidation. You can keep your silver in a home safe or in a bank safety deposit box. When you amass a year’s worth of silver, it is a good idea to include your tangible silver assets in your will, just in case.
A warning about quality. When purchasing investment silver, always confirm that the silver content is prominently stamped on the piece. You have the choice of purchasing sterling silver, commonly known as .925 silver, or fine silver, commonly known as .999 silver. However, be advised that silver-plated bullion, coins and jewelry, sometimes sold in retail stores as “real,” “solid” or “genuine” silver, are worthless. Pay close attention to seller reputation before making any investment precious metals purchase.