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How to Buy Gold and Silver?

Investors have always turned to precious metals like gold and silver when building their investment portfolio. Gold has always remained a popular asset class for many investors, due to its reliability as a store of wealth. Gold has performed well over the last 20 years and the spot price of gold has risen steadily, providing great returns in the short term.

Additionally, the yellow metal has provided an avenue for investors to hedge their risks during times of economic turmoil. Last year, we witnessed the price of gold reaching its highest ever peak due to the economic crisis across the world, triggered by the global pandemic. Silver has also risen steadily over the years, due to high industrial demand. Many investors invest in silver with the expectation that the white metal will generate higher returns in the future.

Deciding your objectives

The choice of precious metal depends on your investment horizon and objectives. Investors who are looking for steady returns in both the short and long term are better off investing in gold. Silver, on the other hand, has a volatile market that is suited for speculative investments. The price of silver is quite low when compared to gold. Therefore, it provides an easy entry for investors into the precious metals market and allows them to book their purchases at current price points in the hope of making quick profits in future.

How to Buy Gold and Silver?
Always look for the refiner stamp on gold bars

Ensuring the safety of your investments

You must be certain that the gold and silver products you are investing in are authentic, high-quality and carry the right price tag. Always buy your precious metals from a reputed online gold dealer. This is the only way that you can be sure about the authenticity and quality of your purchases. Moreover, an online gold dealer will normally ensure that your precious metals are sent to you through an insured delivery service. Most reputed gold dealers will also provide you with an option for storage. If you select this option, your gold and silver purchases will be stored in a secure, LBMA approved vault. All of these are great reasons why you should buy your gold and silver from a reputed online dealer. Going down this route will also ensure that there is no risk of theft or robbery.

How to Buy Gold and Silver?
These one-kilo gold bars clearly display the purity number

Shop around to get the best deals on gold and silver

You shouldn’t assume that you need to buy gold and silver from the same place. Some specialist precious metals dealers offer better prices and options for one metal than another. Try to find a gold dealer who can offer advice on which gold and silver to buy. Most silver websites charge VAT on silver, but one or two can sell without the tax, saving you 20%. Ensure that dealers have a track record and offer a buyback guarantee. Place your order to buy silver or gold online or over the phone and make payment. Gold and silver will be delivered to your door or stored for you in a specialist warehouse.

Insider's Guide to gold and silver

Know your gold and silver products

There are a few steps you can take to ensure that the gold and silver products you buy are genuine. Gold bars that contain investment-grade gold will always have a refinery stamp engraved on the face of the bar. It will also carry a number that denotes its purity. So, if the bar contains 24-carat gold with 99.9% purity, the bar will typically have a purity number of 999.9 on its face. The refiner stamp will also denote the weight of the bar. Similarly, silver bars will also carry this information. When buying gold or silver coins, like the gold Sovereign or the silver Britannia, always ensure that you buy these from a reputed online dealer, who is registered and listed on the website of the British Numismatic Trade Association (BNTA).

Discuss your gold and silver investments with our experts

Physical Gold, one of the U.K.’s most reputed online gold dealers has an investment advisory team, who can assist you in making the right precious metal purchases. Call us on (020) 7060 9992 or drop us an email by visiting our website.

 

Image credits: Hippopx and mlproject

By Daniel Fisher

Daniel Fisher formed physical Gold in 2008, after working in the financial industry for 20 years. He spent much of that time working within the new issue fixed income business at a top tier US bank. In this role, he traded a large book of fixed income securities, raised capital for some of the largest government, financial, and corporate institutions in the world and advised the leading global institutional investors. Daniel is CeFA registered and is a member of the Institute of Financial Planning.

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