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What you should know about investing in bullion

There is a misconception about the kind of people who invest in gold. It is commonly believed that you have to be wealthy to buy gold bullion. This might have been the truth decades ago but things have changed. The gold bullion market has become increasingly accessible to individuals from all walks of life. People have become more financially savvy about what they can do with their money to prepare for the future and safeguard against unforeseen circumstances. You don’t have to keep your money saved up in a bank for a rainy day, sometimes it doesn’t just rain you may find yourself engulfed in a situation that is not only devastating you as an individual but to the entire country and the world. Your rainy day savings in the bank may not be sufficient to help you survive the destruction. We have also seen in the not-so-distant past how the banking system itself can collapse and you end up losing your savings anyway. 

People have come to see and understand the importance of buying into something that holds its value in all manner of catastrophes. Your money may be safer when it is invested in a tangible asset like gold. Gold is good at retaining its value and it has also become easier to sell bullion. As a precious metal, it is used in a lot of important applications and will therefore always be in demand. Fiat currencies on the other hand can be destroyed or lose their value. You could invest in stocks and bonds but they too have been known to crash. People are wary about taking risks with their hard-earned money but gold has emerged as one of the most reliable assets that people can put their money in. You also don’t need to have boatloads of money to be part of the gold market, gold bullion products come in a variety of forms, sizes, and quantities which makes it easy for someone to afford.

Why gold?

Gold lasts forever. Instead of being destroyed, it can be recycled to make new gold products. Gold retains its value even if it is damaged.

Gold premiums have been relatively low since 2013. This means that the period between now and then has been good for those who already own gold. People have taken to buying small quantities of gold bullion and stacking. This means, instead of buying a 1oz. Gold bullion coin at spot + 6% you can buy a ¼ oz gold bullion coin for less than that. When investing in gold you also need to think about selling.

Gold can come in handy in times of financial crisis. Lots of investors found themselves relying on their savings to get through the last two years. Those who could sell bullion were better off as the market price for the precious metal kept rising which means better returns for gold sellers. With that being said, most people wonder which bullion product is the best: coins or bars? To answer this you have to look at the fundamental differences between these two forms:

Bullion Coins vs bullion bars                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Bullion coins are usually produced by government mints. This means they have legal tender. It isgold easy to find what the price of a particular gold bullion coin is when you decide to sell. However, bullion coins aren’t exactly cheap. They have higher premiums because of the design and other features that make them stand out. They might be expensive to buy but you can also sell gold bullion coins for a good price compared to bullion bars which have significantly lower premiums. When people think of bars, they think of some large brick-like product that is too heavy to carry around. However’ not all gold bars are bricks. Modern gold bullion bars are usually small-sized tablets that are so small and lightweight, you could carry one in your pocket and forget that it is even there on the other hand most bars feel awkward and not easy. Compared to coins, gold bullion bars aren’t easy to liquidate. This is something every gold bullion investor should know right from the beginning.

Ever heard of the saying: “start small” his can be applied to buying gold bullion. The same can be said about selling. Don’t try to sell your entire investment basket in one go. If you managed to stack gold then you can sell individual gold bullion pieces. Remember that the value of gold changes a great deal so if you are going to create an investment portfolio you might want to start small and give yourself time to understand how it all works. Experienced investors know the importance of not “putting all their eggs in one basket”. They know the value of investment-grade assets changes a lot and will not put all their money in one type of asset class. Prudent investors often diversify by investing 5-10 percent in gold and at least 10% in silver. Gold and silver usually complement each other. There’ll always be a demand and people will continue to be interested and enthralled by these precious metals. 

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