More and more people are turning away from stocks and bonds and beginning to invest in solid, tangible commodities. If you are considering investing in gold or another precious metal for the first time, there are few things of which you should be aware before you buy bullion. As with any investment, you will need to make smart decisions and take steps to protect yourself, even after you have your bullion in your possession. Follow the tips below to make smart gold investments.
Know the Rules for Reporting Transactions
An experienced precious metals dealer can tell you which transactions must be reported to the federal government and which can stay off the record. Many purchases involving low premium bullion bars and coins do not need to be reported, regardless of the denomination. If you are not sure whether you need to file any tax documents, consult with your gold dealer.
Decide Which Items to Purchase
The price of precious metals does fluctuate, and while bullion can always be sold, you need to understand the risks and rewards that come with investment in tangible assets such as gold. Sometimes, buyers are under the mistaken impression that bars and bullion coins have different values. While some rare coins are worth more than the price of the gold they contain, most bars and bullion coins are only worth their melt value—that is, they are only worth their weight in gold.
Be Conscious of Quantity
In order to get the best prices and make the most of your investment, purchase larger quantities at a time. Also, be aware that investing in one-ounce gold coins is often a better value than half-ounce coins, as the markup on one-ounce coins is marginally less, which can add up when purchasing large quantities.
California Numismatic Investments deals in gold coins and bars, as well as bullion made from other precious metals. To learn more about the tangible assets we trade, and to start investing in gold today, call us at (800) 225-7531.