The questions first-time precious metals buyers ask most often are "what should I buy?" and "how do I get started?" We have covered these questions many times over the years, but they are worth reconsidering from time to time.

The very first rule of precious metals investing is to avoid collectible coins and buy low-premium bullion (non-collectible) products instead. Well, to be precise, it is actually those many shady rare coin dealers one needs to avoid.

The dealers to avoid are usually the ones heavily marketing on TV and radio using celebrity spokesmen, looking for inexperienced buyers. They know what buttons to push. The ads talk a lot about real issues – concerns such as the massive federal debt and the potential for U.S. dollar depreciation to wipe out savings and wealth.

People call them, looking to do something smart and protect themselves by acquiring some physical gold and silver.

Then the fast-talking salespeople go to work. They try and switch people from making a simple investment in easy-to-understand bullion products, into buying dubious collectible and proof coins with a massive markup.

They talk about the huge potential for rare coins to appreciate in value and then sprinkle in some bogus advantages to make these items look like a better option than lower priced bullion.

Our Specialists have heard it all from clients who suffered the sales pitches of these shady operators: lies like rare coins can’t be confiscated; they are tax exempt; they have a record of outperforming bullion as an investment; bullion purchases must be reported to the government; etc.

All of these claims are nonsense, but thousands of newbie precious metals investors are getting pitches like these every day.

Too many of these poor souls end up paying 30% to 50% above what the coins are actually worth, and sometimes even more. When they start that far upside down in their investment, who knows when they will break even?

Buying highly liquid bullion coins, rounds, and bars close to melt value is the best way to go, period.

The second rule for making a good investment in gold and silver is just to get started.

Conventional investment advisors and stock brokers like to poke fun at metals as an investment. They aren’t serving their clients too well.

If the financial establishment stopped worrying about the commissions and fees they get for pushing stocks, bonds, and mutual funds (i.e. paper), they might let clients know gold has vastly outperformed the S&P 500 since 2000…

…they might acknowledge the U.S. government is insolvent, the future of the U.S. dollar is grim, and that these things have vast implications for the fragile and deeply interconnected global financial system.

People need to prepare and they need to move quickly.

Anyone making a clear-eyed assessment needs to acknowledge the 2008 financial crisis may just have been a warmup for the true reckoning yet to come.

Putting 100% of an investor’s eggs in the Wall Street basket is not a wise proposition, but that seems to be exactly what most financial planners and brokerages are advocating.

It is not fashionable to worry about risks such as uncontrolled inflation, banking crises, and 50% stock market corrections at the current moment. Stocks are flying high and metals are cheap.

However, these risks, plus others, are real and growing. Now is not the time to be complacent.

The third rule for making a sound metals investment is to choose your dealer carefully. Do a bit of due diligence before placing your order.

Price is a consideration when comparing dealers. However, price should definitely not be the only consideration.

Buyers make payment in advance of receiving the gold and silver they order. That means the dealer’s reputation and strength should also be evaluated.

Getting the lowest price will be scant comfort if the dealer doesn’t deliver the metal. And there have been some ugly blowups of "low-price leaders" in our industry.

The BBB offers ratings and customer reviews for most dealers. Other websites do as well.

A quick internet search can reveal a lot about how these businesses treat their clients. Pay special attention to any pattern of complaints around dealers either not delivering or being slow to get orders shipped.

Money Metals Exchange and its staff do not act as personal investment advisors for any specific individual. Nor do we advocate the purchase or sale of any regulated security listed on any exchange for any specific individual. Readers and customers should be aware that, although our track record is excellent, investment markets have inherent risks and there can be no guarantee of future profits. Likewise, our past performance does not assure the same future. You are responsible for your investment decisions, and they should be made in consultation with your own advisors. By purchasing through Money Metals, you understand our company not responsible for any losses caused by your investment decisions, nor do we have any claim to any market gains you may enjoy. This Website is provided “as is,” and Money Metals disclaims all warranties (express or implied) and any and all responsibility or liability for the accuracy, legality, reliability, or availability of any content on the Website.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD: Stable amid trade calm and German stimulus hopes

EUR/USD is trading around 1.1100, marginally higher. President Trump expressed optimism about reaching a trade deal with China while Germany's Scholz opened the door to stimulus. EZ Core CPI is confirmed at 0.9%.

EUR/USD News

GBP/USD steady below 1.2150 after Yellowhammer leak, as Corbyn calls for no'confidence

GBP/USD is trading below 1.2150 amid reports of food shortages in case of a hard Brexit, project Yellowhammer. Opposition leader Corbyn calls for a no-confidence motion against the government 

GBP/USD News

USD/JPY bounces off 106.25, focus on Fed minutes, Jackson Hole

USD/JPY bounces off the key support at 106.25 and heads back towards the 106.50 level, in response to downbeat Japanese trade data, risk-on action in the Asian equities and higher Treasury yields.

USD/JPY News

Top 3 Price Prediction Bitcoin, Ripple, Ethereum: Bullish levels to watch after Binance announces Venus vs. Facebook's Libra

Cryptocurrencies have been advancing once again, with Bitcoin topping $10,500, Ethereum clawing its way back above $200, and Ripple extending its gains.

Read more

Gold trades with modest losses, still above $1500 mark

Gold prices edged lower for the second consecutive session on Monday, albeit managed to hold its neck above the key $1500 psychological mark.

Gold News

Majors

Cryptocurrencies

Signatures