Many investors are choosing to invest in precious metals. Gold, Silver, Platinum, and Palladium are all solid investment choices that protect the buyer from inflation. However, picking the right company can take much work for those new to this investment arena. The best way to understand it is to understand how these precious metals prices are determined and how they compare.
Most precious metals companies provide their investors with an easy way to buy and sell their precious metals. The transactions are usually made online through their websites by filling out the necessary forms and allowing their accounts to be debited or credited. There is generally little paperwork involved in signing up with a company, and they are typically ready to accept your money within minutes.
Buying or selling precious metals is normally done using teller bars ranging from 5 ounces to 1,000 ounces of gold, silver, platinum, or palladium. The smallest form of transaction will be a 5-ounce bar for gold or silver and a 1-ounce bar for platinum and palladium. These bars are normally 99% pure of the metal that it represents.
Most precious metals companies are run by their members, producing their own bars on their behalf. The bars are then shipped to a refinery that reconstitutes the metal and weighs it to an exact weight. The member then receives their bar of precious metal and sells it on a wholesale basis to end-users looking for possession of a solid investment choice.
Another thing is to consider if they offer a gold IRA or not. Companies like Goldco are well known for their gold IRAs, helping customers diversify their financial portfolios.
Factors to Consider When Choosing A Precious Metals Investment Company
Most precious metals companies sell a wide variety of bars. They are usually divided into 10-ounce and 5-ounce bars for gold, silver, or platinum, further divided into Eagles, Maple Leaf, and Specialized forms. It means that the investor can pick from approximately 100 different forms of the bar depending on their preference. The bars vary in weight from .10 ounces to 1 ounce and in price from $1-$200. The larger bars tend to be more expensive, while the smaller bars tend to be less expensive. Each bar will contain 999 grains of alloyed metal with a purity level ranging around 99%. A company like Schiffgold may offer some or any of these things. Just make sure to get more information about Schiffgold or any other company before investing.
To store your precious metals, these companies normally require you to open an account with them. They provide a storage facility that offers 24-hour security and is secured by motion detectors and video cameras. Some facilities even offer light- and humidity-controlled vaults and temperature-range-controlled rooms that protect the bars from damage due to heat or moisture. The gold is usually stored in their vaults, while the silver, platinum, and palladium are stored in their private vaults at other secure locations throughout the country.
Each precious metals company has different requirements for deposits. Again, they are usually a minimum of 5 ounces or approximately ¼ of an ounce per bar, depending on the company and where you live.
Most companies will fully prepare your bars and have them ready to sell within minutes of your order. However, there is no guarantee of the price you will receive when selling the metal on the spot market or off the exchanges, for that matter. Since contracts are only signed once delivery occurs, no one knows exactly when it will occur. With precious metals, this can be from 30 minutes to several months. You generally hold the metal for a maximum of a few days before it will be shipped back to you.
Most companies offer their members the ability to sell their metal to them and offer a profit that is often more than other precious metal investments. It is done by issuing a contract on your behalf, and when someone buys the contract, they are then required to purchase your bar of precious metal for its spot price at that time, or the contract expires, at which point you receive both the ORIGINAL cost of the metal and the interest from holding it in safe storage for that amount of time.
Others prefer to buy and sell their metal on the exchange market to get a higher rate of return on their investment at the risk of possible fluctuation in price. It can be done through the companies they originally signed up with or online auctions run by various precious metal companies like APMEX. The spot price is the cost you will pay or earn when buying or selling your precious metals online. The exchange rate is the current price of gold, silver, platinum, or palladium, calculated and published by companies such as CME Group and Thomson Reuters. These two groups publish the spot prices daily for their respective metals.
Most precious metals companies offer a very easy way of buying and selling their precious metal. The investor can easily open an account with a company that provides them with 24-hour security and storage facilities. Their bars are custom-made by the member depending on their preferences and are converted into precious metals at the refinery on their behalf.