The popularity of gold and silver bullion has been steadily growing in recent years, and with the current economic climate it is hardly surprising. Investors want to be sure that their wealth is protected, and history has shown that gold bullion can be a true safe haven when it comes to safeguarding money for the future. Precious metals have been a significant aspect of the investment market for centuries, and wise investors have long since discovered the benefits of a balanced investment portfolio. As we know, gold is an incredibly low risk asset, due to its having no counter party risk and its ability to maintain a strong price over time. But what is the best way to invest in bullion?
Of course, each individual investor has specific needs depending on their own personal circumstances, but there are certain guidelines that all investors can follow in order to make the most out of their bullion investments. By asking yourself a few simple questions, you can choose the route that will suit you best and allow you to maximise your returns. Begin by asking yourself the following three questions:
- How much do I wish to invest?
- How will I store my bullion?
- How much do I know about the bullion market?
Once you have taken time to consider the answers to these questions, you will be in a strong position to take your first steps towards becoming a bullion investor. Then all you need to do is to simply follow our guide to a successful investment process.
BEFORE BUYING BULLION
There are several steps that you must take before you proceed with your bullion purchase. These will ensure that you make the right decision when it comes to choosing your investment, as well as making your bullion safe and secure. The most vital of these steps is making sure that you have the means to securely store your bullion. If you wish to store it at home, this will require you to have both a safe and the necessary home insurance. If you wish to store your bullion in a safe deposit box or a high security vault, you must consider this and make sure that your supplier can arrange it for you.
It is also vital to do some research before you proceed to your purchase. You should research the supplier whom you are intending to buy from, as well as the different bullion brands and types of bullion. A common dilemma is whether to buy bullion coins or bullion bars, but this needn’t be a complex choice. If you are new to the bullion market and wish to invest a small amount, buying bullion coins is a good way to begin investing. Coins are easier to store and can be sold individually, making them a more flexible choice. Bars, on the other hand, are a better choice for those wishing to invest larger amounts, as they can offer lower premiums if bought in large volumes.
When it comes to the different bullion brands, it’s important to read up on their histories and refinement methods. At London Gold Bullion, we offer gold from a variety of global brands, including Metalor, Sempsa, Heimerle Meule and PAMP. Some brands offer gold of a higher fineness grade than others, which will be priced higher due to its higher gold content. If you have a preference for gold from a particular country, this may also influence your decision. All in all, there is no right answer to these questions, as each is dependent on your individual preferences and situation. It is important to take your time in this stage, though, and not to rush your purchase, as you may later discover that you could have made a more suitable investment.
WAITING FOR THE RIGHT TIME TO BUY BULLION
Once you are ready to buy your bullion, you must wait for the right time to do so. It is tempting to rush straight in and buy, but you must avoid this. Buying at the wrong time may result in you paying a higher price for your bullion, which could affect your returns when you come to sell it. This is particularly important if you are buying silver bullion, as the market in this instance is notoriously volatile. It is wise to watch trends in the market and read the latest bullion news. This will give you a strong idea of which way the prices are heading, and allow you to buy when they are lower.
WHEN THE TIME IS RIGHT
When you feel the time is right, and you have prepared for storing your bullion, you should proceed with your purchase. Buying bullion online is an incredibly simple process, as all you need to do is add your selected items to your basket and proceed to the checkout. Remember that when you purchase gold bullion in the UK, you do not pay VAT or stamp duty, which makes the purchasing process simpler and quicker. How you pay for your bullion is up to you, as we accept credit and debit card payments, bank transfers and PayPal.
BULLION POST PURCHASE
Once you have completed your purchase, you will either be awaiting the delivery of your gold or confirming arrangements to have it stored at a high security vault or safe deposit box. If you are going to store your gold at home or another secure location, it will be shipped to you via safe, fully insured delivery.
At London Gold Bullion we only use the most reputable couriers, so you can rest assured that your parcel will arrive securely. It is then your responsibility to secure your bullion and to maintain this security over time. You should also continue to watch the bullion market in case an opportunity arises and you wish to sell your bullion.
When compiling your investment portfolio, it is important to remember that you are advised to hold between 5% and 15% of you assets in bullion. This will allow you to safeguard your wealth in case of personal or financial crisis. It is also advisable to invest in both gold and silver bullion, in order to take full advantage of the bullion market.
Investing in gold provides you with a steady buffer, while investing in silver can allow you to make substantial gains on your investments. For this reason, it is often suggested that investors should hold both gold and silver bullion in their investment portfolio, in a gold to silver ratio of 2:1.