Answers to Some of the Most Common Questions About Investing in Precious Metals

Answers to Some of the Most Common Questions About Investing in Precious Metals

Investing in rare coins and precious metals is a great way to diversify your investment portfolio. But finding a reputable precious metal and coin dealer is not easy. Read this article to find out how to locate a good precious metal dealer and start investing in precious metals the right way.

Golden question

How Do I Incorporate Coins and Precious Metals in My Investment Portfolio?
Because the market for gold and silver is larger than the market for platinum and palladium, many investors say that platinum and palladium should comprise no more than five percent of your investment portfolio, compared with 10 percent for silver and gold. In sum, a conservative approach is to use 10 to 20 percent of your investment funds to purchase inflation-sensitive certified rare coins and precious metals.

How Do I Find the Right Precious Metal Dealer?
Do not buy from a coin dealer that offers in-house coin and precious metals storage. This is an unsafe way to keep your coins; instead, opt for bank storage or independent storage facilities like CNT Depository, Inc. Do not go to a coin dealer that uses high-pressure sales tactics, either. The best coin dealers do not use commissioned salespeople and never pressure you into making a purchase you are not 100 percent comfortable with.  

How Do I Distinguish Between Bullion Coins and Certified Rare Coins?
Bullion coins are minted coins that are not used in day-to-day transactions. Bullion coins made from precious metals are a great investment, as their value will go up or down based on the commodity price. Rarity is often not a factor in the value of collectible coins or bullion.  

What Should I Know Before Buying Rare Coins Made of Precious Metals?
Only buy rare coins that are graded by the Professional Coin Grading Service (PCGS), as this is the most accepted standard among the top dealers in the country. Furthermore, avoid buying rare coins that are less than 30 years old, as they haven’t yet established secondary market pricing.

For more tips on investing in precious metals and coins, contact California Numismatic Investments, one of the country’s largest precious metal dealers. Call us at (800) 225-7531 or visit our website for more information about investing in precious metals. 

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