The Basics of Investing in Precious Metals
Precious metals are a great investment vehicle, especially when you're looking for low volatility and long-term appreciation. You can own and hold gold, silver, platinum, and other precious metals outside the stock market. Precious metals are easily turned into cash, and in some cases, you can wear your investment. Here's a look at the basics of investing in precious metals.
What to Consider When Buying Coins
Coins have both collectible and metal value, which plays a role in deciding what to buy. Modern collector coins are unlikely to gain significant value shortly but could increase due to their metal content. In contrast, older coins have collector and metal value to some degree.
Both are valid investment vehicles, and the type of coin you buy depends on your goals. Buying silver or gold coins at current metal value is a good option if you're not overly concerned with collector value. However, if you're looking for more out of your investment, buy coins with a good chance of increasing in value because they're rare and in good or higher condition.
The condition of the coins you buy also affects their valuation, especially with the ones in circulation. Precious metal coins are often worn from handling, which causes the images to look blurry. A coin with little wear will always have more value than one that's been heavily used. Coins with heavy wear are unlikely to increase in value outside their metal value.
Purchasing Bullion for Holding
Bullion, also known as bar, is a brick made from a highly refined precious metal such as gold, silver, palladium, and others. They range in weight from 1 gram and reach as large as a kilo. The exception to the weights is the 1-ounce bar, which is how gold and silver are weighed and valued in the U.S.
Buying bullion puts the metal directly into your control, and you can store it however you like. If you want to take advantage of the increase in value of your bullion, you can take it to a reputable buyer of precious metals and exchange it for cash. Many precious metal investors prefer to purchase bullion because it is easy to buy, hold, and sell.
Buying Jewelry as a Store of Value
Purchasing jewelry made from precious metals is another investment area, but you should pay attention to the price you pay versus the current price of precious metals. When you buy jewelry at retail, you're paying for the markup the retailer includes as part of their price. To get the best return on the jewelry you buy for investment, you'll need to hold onto it until the cost of the precious metals exceeds what you paid.
The stones, such as diamonds, sapphires, and rubies that go into jewelry have a value separate from the piece itself. Check that the stones are certified by a reputable organization such as the Gemological Institute of America (GIA) to get an idea of the quality of the stones and their value.
Designer jewelry, or ones made by a well-known jeweler such as Tiffany's, tend to have a higher valuation due to their provenance. Before you buy a designer piece, look into its history, how many were made, and if it comes from a specific era. These and other factors influence the investment value of a piece.
Get Cash for Your Precious Metals Today
At Cherry Hill Coins, we buy precious metals in all forms and give you fair pricing in return. Are you looking to trade in near Burlington Township, NJ? Contact us today to discuss what you're looking to sell, and we'll take the time to explain our buying process to you. We aim to give you a satisfactory offer for your coins, bullion, and jewelry, and we will work hard to earn your trust.
