Buying bullion gold and silver might have seemed to take a bit of a damper in recent months due to the cryptocurrency craze that ushered in 2021. However, don’t be fooled; bullion precious metals will continue to be a major hedge and investment tool used by people from all kinds of backgrounds to hold onto and protect their wealth. The simple matter is that bullion precious metals are not directly tied to companies, economies, governments, or political monetary policies. As a result, when things go south in all of these categories or any of them, precious metals tend to not only hold onto their value but increase as everyone late to the game comes running to buy their portion of them as well.
Lots of Advantages with Gold and Silver Bullion
Gold and silver dealers and their inventory both provide multiple benefits to investors and precious metal bullion is probably the best version to have given the high quality most bullion pieces are made of. On average, most pieces are 24 carat or 0.999 quality, being as close as possible to the spot price for a troy ounce, at least in unit measurement. That makes gold and silver bullion particularly useful for investment because they can be easily traded. The same can’t be said for lower quality forms of precious metal that might be 0.92 purity or less. Things get harder to evaluate and price, triggering more weighing, testing, and evaluation to determine the actual gold or silver content involved.
Bullion also provides investors the following:
- A hedge against inflation and loss of portfolio value.
- A hedge against the long-term trend of the declining major currencies.
- Protection against the growing instability of the global economy and risk of future world tensions.
- Both gold and silver are finite resources, so their value is directly affected by supply and demand. And the demand continues to keep growing.
- Gold and silver have culturally been considered important and valuable, so they are recognized as valuable around the world and not restricted to just one country.
- Gold has historically and repeatedly proven its ability to protect wealth when times are bad. Many well-to-do Europeans held onto gold after World War I because normal fiat currencies weren’t worth anything or the paper they were printed on.
- Gold and silver are physical assets, unlike fiat paper currency that can be devalued in an instant. Just look at what happened to Latin American countries in the 1970s and 80s or Iraqi and Syrian money in the 2000s.
Starting Out in Bullion for the First Time
If you’ve never invested in bullion, whether it be gold or silver or some other metal, getting started can seem a bit daunting, even when looking at today’s prices. However, keep in mind, someone 10 years ago and someone else 20 years ago thought the same thing, and now look at where their holdings are now! The fact is bullion value generally tend to go up over time. More and more demand builds, and the supply doesn’t grow fast enough to keep up. As a result, bullion metal values tend to rise. And even if they don’t stay at high prices permanently, there is enough volatility that someone doing their homework and due diligence can find opportunities to buy and then sell for a profit with very handsome returns.
If you are starting out, it’s a good idea to work with a reliable dealer source for gold and silver bullion information. Your first step should not be what price to buy at. Instead, it should be to learn as much as possible about how gold and silver work, how they are created, who provides them to the market, how these metals trade, what supports their prices, and how they sell. When you have a good grip on these details, then it’s time to think about buying. Don’t worry though, the research is the easiest and lowest cost part of investing in precious metals. Almost all the information you will need or want can be obtained for free on the Internet with basic search tools.
When you do decide to buy, stay within your budget and focus on building a nest egg. Don’t get caught up in buying in the moment or trying to find the perfect price point. Gold and silver bullion will always go up and down within their respective price ranges. The $20 or $30 difference gets wiped out over time as your holding increases and your overall bullion value builds to a far greater amount going forward.
Think About What Your Bullion Choice Will Require
The type of bullion you choose can also dictate some changes you may have to make. If you focus on bullion coins, for example, they are easy to store and hold individually, but building up a number of them will mean that you need to think about their storage and containment. The last thing you want is a bunch of gold and silver bullion coins floating all over your sock drawer. Guaranteed, one or more of them are going to disappear over time or fall out. Instead, if you reach a point where you can make a sizable purchase, or you want to consolidate your smaller holdings into one big one, then consider bullion bars. These consolidate gold or silver into larger amounts, still measured and accurately valued, and it reduces the need to keep track of your “loose change.” Bars come in various sizes and you can scale up as you build a greater number of gold or silver bullion pieces and convert them to one larger piece in a trade or swap.
Even with bullion bars that incorporate a lot of gold or silver in one unit, however, at some point, you will need to consider safer storage. Little hiding spots in your house are not going to cut it, especially if someone watches where your hiding spot is located. Little kids are amazingly smart and good at finding hidden pockets, drawers, boxes, and holes in the home simply because their curiosity and lower level to the ground make it easier for them to see things adults miss. Instead, to make sure your bullion doesn’t get up and walk away, you will need a secure storage unit, such as a safe. Alternatively, if a safe in your house doesn’t work, then you will need to find a gold and silver storage vendor who will rent you storage space in a vault. Your bank deposit box may work for a while, but eventually, your holdings will outgrow that too and a bigger vault service will be needed.
A New Zealand Dealer Favorite for Gold and Silver Bullion Support
MyGold is your answer for gold and silver bullion education, price guidance, high quality inventory selection, and safe purchasing. MyGold represents our passion for gold and silver as an investment like no other. Given the circumstances of recent economic situations worldwide, there has never been a more important time to consider holding physical gold and silver than 2021. Operating as an independent dealer of precious metals for the New Zealand market, MyGold sources only the highest quality gold and silver bullion products for investors and the public. We regularly supply physical gold and silver and, because we are independent, we can match the best products for your budget.
Gold and Silver Bullion offers an excellent hedge against inflation and spreading investment risk is the hallmark of a smart investor. In uncertain times when the monetary policy of the day is to “print more,” investors rush to the safety of gold, silver, and similar commodities. Be ahead of the curve already with your own portfolio of bullion grown bit by bit, coin by coin, and bar by bar over time. MyGold can help both with bullion choices as well as with security and storage safety too. Call us today to find out more and how you can get started in gold and silver bullion investing.