Buying bullion as an investment strategy is a great way to diversify your financial portfolio and improve your economic security. However, the process isn’t quite as straightforward as it may seem. Newer investors often become overwhelmed with the technicalities of investing and wide range of options available. As such, it’s essential to gain a good understanding of the precious metals market before diving in. To help you get started, below are the answers to some of the most common questions people ask about bullion.
What to Know About Putting Money into Bullion
What is bullion?
Bullion refers to gold and silver precious metals that are in bulk form. For a product to qualify as bullion, the biggest requirement is that it have a high purity level, generally above 90 percent. It’s typically categorized into two main types – bars and coins. Bullion bars are usually made at private mints, while coins are manufactured at government mints.
Should I buy gold or silver bullion?
Gold and silver are both popular investments, but gold has a better track record over the long term. It has a larger liquid market, and gold prices tend to be more stable. Since silver is used in many industrial applications, it has a stronger relationship to economic fluctuations. The biggest advantage silver has over gold is that it’s less expensive, and thus more accessible to smaller investors.
What does spot price mean?
The spot price for gold and silver bullion is the current market price for that particular precious metal. This is quoted per troy ounce. Spot prices are constantly changing, as precious metals are being traded throughout the day around the world. Buyers will pay the spot price for bullion in addition to a small premium, which is based on demand along with manufacturing and distribution costs.
What’s the difference between bullion and numismatic coins?
Bullion pieces are sold according to the value of the precious metal they contain and are produced in mass quantities. On the other hand, numismatic coins are considered rare and their value is determined by condition, scarcity, historical significance, and collectability. Therefore, these pieces can be worth much more than the value of their gold or silver content.
At Steve’s Precious Metals, you’ll find a broad selection of bullion to begin or add to your collection. Our expert staff will take time to explain the buying and selling process so you can confidently proceed with your investment journey. As a family-owned and -operated business in Redding, CA, we strive to provide each customer with a trusted and comfortable retail experience. Call (530) 223-0170 to set up an appointment or visit us online to learn more about the services we offer.