Investing in Bullion: What You Need to Know
Are coins and bullion bars good investments? In today’s post, you will learn what you need to know to make a good decision about whether to sink your money into these popular investments.
What Kinds of Coins and Bars Are Available?
There are several options available for investment. Let’s explore.
Gold Bullion Investments
Coins: These are physical precious metal coins, typically struck by sovereign government mints. They derive their value primarily from their melt value. Examples include the American Gold Eagle, Canadian Gold Maple Leaf, and the South African Krugerrand.
Bars: These are gold bars or ingots, usually struck by private mints. Their value is based on their melt value alone. Some sovereign mints, like the Royal Canadian Mint, also produce bullion bars.
Platinum Bullion Investments
Bars: These are bars or ingots made of pure platinum. Their value is derived from their platinum content. Examples include the American Platinum Eagle and the Canadian Platinum Maple Leaf coins, which have a face value lower than their actual platinum value.
Silver Bullion Investments
Bars: Silver bars or ingots are another option. Most are produced by private mints, although some sovereign mints also create silver bars.
Coins: Like gold coins, silver bullion coins are struck by sovereign government mints. They have a legal tender face value but are primarily valued based on their melt value. The Silver American Eagle and the Canadian Silver Maple Leaf are popular examples.
Rounds: These are flat, round or wafer-shaped silver pieces, struck by private mints. Their value is also tied to their melt value.
Are They Good Investments?
Remember that your choice depends on factors like direct delivery, privacy, liquidity, and storage cost. Keep in mind that owning physical bullion provides peace of mind and understanding of the industry.
Which Metals Make the Best Investments?
Gold is a timeless choice and often comes to mind when thinking about precious metals. It has a long history as a store of value and is widely traded globally. Many investors consider gold a hedge against economic uncertainty.
Silver is another popular precious metal investment. It tends to hold its value over time and is often seen as a hedge against market volatility. It is always in demand because it is used in so many ways – in jewelry, in industrial processes, in electronics, and more.
Platinum is rarer than gold and silver. It has industrial uses, especially in catalytic converters for vehicles.
Our View on Better Investments to Make
The value of bullion – both when you buy it and sell it - is always tied directly to current trading prices. So it is not possible to buy it at a low price and sell it at a higher price unless the trading price of the metal it contains rises.
That is why we know that other investments, in precious metal scrap particularly, promise a greater opportunity to get a larger return on your investment.
One example? One investor bought platinum sponge that had been used in an industrial process. He paid literally pennies on the dollar and was able to realize a large return when Specialty Metals Smelters and Refiners processed his sponge into bright, shiny platinum bars.
Want to learn more about making the best investments in precious metals? Why not call our precious metal refiners, tell them the kind of scrap you have, and benefit from our expert advice. The number to call is 800-426-2344 or email us at sales@specialtymetals.com.