Hi,
As a novice investor, buying gold and silver can be quite daunting at first. The prices are always fluctuating, the premium varies, and the sellers are definitely not the same. The good news is that once you are aware of the basic information, investing in physical precious metals is quite simple and accessible.
Physical vs. Paper: What New Investors Need to Know
As a novice investor, the first thing that one should know is the difference between physical precious metals and paper precious metals. Physical precious metals include investing in actual precious metals that are not affiliated with any bank or financial institution. This is the primary reason why many investors prefer investing in physical precious metals.
What are Spot Prices, and How Do They Work?
Spot prices are the prices at which precious metals are traded globally. Spot prices are priced per ounce. The premium is the price that is paid above the spot price. The premium includes the cost of minting the precious metals.
As a novice investor, one should be aware of the spot prices but also the premiums. The premium is charged transparently, just like the spot prices. The premium is priced close to the spot prices without any additional costs.
Coins or Bars: What is Best for New Investors?
Both coins and bars are good investment vehicles. Coins from respected mints, such as the Royal Canadian Mint, offer high liquidity and instant recognition.
For new investors, coins and smaller bars may be a good investment vehicle because of their flexibility and cost.
Buy From a Trusted Canadian Dealer
Not all dealers work to the same high standards. By buying from a respected Canadian bullion dealer, you’re assured of a genuine product at a competitive price and backed by good customer service.
Dealers work directly with mints and refineries to source their products, and this provides an additional level of assurance for new investors.
Storage and Long-Term Thinking
Before making a purchase, it’s a good idea to think about storage for your precious metals. For some, this means a home safe, and for others, it means a secure storage facility.
Gold and silver are not short-term investment vehicles, and this is something to consider.
Why Many New Investors Choose AU Bullion
AU Bullion makes buying gold and silver in Canada simple for new investors. We offer transparent pricing and competitive premiums on a large selection of investment-grade bullion.
For new investors, it’s not just about making a purchase, it’s about education, trust, and assurance – and this is what sets a first-time purchase apart from a successful investment.
