Did you know that investors have been flocking to precious metals as a form of safe-haven investments in the time of COVID-19 and its global effect on the world economy?
Whether you’re looking at silver or gold bullion, both have proven to be a rather stable form of investment after seeing a small dip in March 2020, and have been steadily increasing ever since.
Welcome to the world of buying bullion. If you’re unfamiliar with this entire field of investment, no worries. We’ve got you covered. Keep on reading for our little guide on all things buying bullion. We’ll delve into the basics of what bullion actually means, its market, and how you can start investing.
Buying Bullion 101: What Is Bullion?
In the simplest of terms, bullion refers to gold and silver that’s officially recognized as 99.5% pure or higher. They tend to come in the form of ingots or bars.
Moreover, these aren’t some obscure form of investment. As a matter of fact, you’ll find many governments (and their central banks) keeping them as a reserve asset in case of economical instability or needing to access funds in a short time span.
What is the Bullion Market?
Generally speaking, bullion is traded in the bullion market. It’s an OTC market that’s operating 24 hours a day, with a high trade volume as it includes the majority of bullion trading prices daily.
The transactions are mainly conducted by phone or electronically, and you’ll want to know that there are many different bullion markets on a global scale. Some of the well-known ones are available in London, Tokyo, Zurich, and New York.
How Do I Invest in Bullion?
The very first step would be looking for credible sellers like investor crate, as these will be able to provide investment-quality gold bars that are at least 99.5% gold.
You’ll want to avoid scammy gold and silver bars that are made of alloys, and those wouldn’t be considered bullion in the first place. Legitimate bullion bars will come with the name of their manufacturer, their weight, and their purity stamped on their face. The ones with “99.99%” are the most common ones on the market.
Understand the Difference Between Bars and Coins
It’s critical to recognize the difference between gold (or silver) bars and coins. If you’re looking to invest in a physical product that tracks the price of gold, then you’ll want to stick to gold bars, and avoid coins.
Basically, gold coins come with attractive designs, and some can have great historic value. However, the majority of coins will have a lower quantity of gold and can cost you more to buy due to their numismatic value.
Give Your Portfolio a Shakeup
Instead of bemoaning the fact that we’re living in times of economical turmoil, which is giving our traditional portfolios a beating, you’ll want to give buying bullion a chance.
We hope that our small guide into the basics of buying bullion, and how it works from an investment perspective, helped guide you through the wonderful world of trading in precious metals. Remember to do your research, and get your bullion from reputable sellers, and you’re good to go.