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Published On: Tue, Dec 1st, 2020

Can I Supplement My Retirement by Investing in Bullion

Just as governments and individuals around the world do, you too can invest in bullion. Investing in bullion is a prime way to supplement your retirement and make sure that you have a diversified investment portfolio.

What Is Bullion?

Bullion just means that the gold, silver, or other precious metal is still in its bulk form, will be assessed by weight, and will normally be cast in bars, ingots, or another form of bulk measurement. Bullion can be sold by dealers or big banks.

Bullion can also come in the form of coins, which are normally purchased as an investment measure from coin dealers, major banks, or even dealers who focus on supplying precious metals.

Bullion can come in varying “grades,” or qualities. For example, US coins have a standard to meet, and although foreign governments may make coins, their quality and purity might not match the standard of gold, silver, or other precious metals as set in the US. Additionally, they won’t be guaranteed by the United States government. The value of bullion coins minted in other countries depends on the coin’s melt value. In the world of precious metals, everything boils down to the weight of material like gold or silver.

photo/ Steve Bidmead via pixabay

Do Precious Metals Keep a Consistent Value?

Prices for gold, silver, and other precious metals change daily and depend on how well the metals are doing on the world markets. This means that all the bullion in circulation (owned both by government and private individuals) will figure into the current price of precious metals. Miners are consistently finding gold and silver, which will often be injected into the world market, so while the price to buy and sell can change, it’s all dependent on how things on the world market are looking.

Why Use Bullion as an Investment?

Precious metals are a go-to investment for many because, unlike paper money, which is fiat-based, there is value built into the weight of the metal. Silver, gold, and other precious metal bullion is a choice investment for people the world over, whether they’re individuals, organizations, or governments. There’s security in something tangible, and there’s value in the longevity of precious metals.

First, it’s important to have a diversified investment portfolio. It could contain investment property, stocks, and bonds, among other things, and this is where bullion comes into play. Bullion holds its value over time, and that cannot always be guaranteed in other markets, like housing or stocks. Having something on hand that will be there when, perhaps, something else isn’t is a good reason to supplement your retirement with tangible and lasting investments.

Before You Invest, Do Your Homework

  • It can be advisable to make sure that you have a financial advisor work with you as you decide on what and how to invest and save for retirement. Having a reputable and reliable advisor can make all the difference in how your investment portfolio is run.
  • Compare prices. Sometimes you will find different prices between banks and dealers.
  • You’re entitled to an appraisal before you purchase, so have an independent appraisal done before you buy any gold or silver bullion.
  • Inquire about the value of the bullion once it’s in its melted form. The melt value should be widely available.
  • Consider extra costs. Investing in bullion isn’t quite like having money in the bank. Because precious metals are tangible and heavy objects, you may have to cover costs to house them in banks or safe deposit boxes or for other modes of protecting your investment.
  • There can be some terminology that doesn’t quite add up. For example, some dealers will sell you bars but deliver to a “secured facility.” If you’re not personally taking delivery of your assets, reconsider the purchase.
  • Investing in bullion should not have a sales pitch involved. Avoid any situation (and walk away!) if you get the sense that it’s a marketing ploy or pitch. It’s not worth your time and certainly won’t be the investment that you’re looking for.
  • The same goes for anyone claiming that you need to “act now” for your purchase to go through. There’s no rush to buy bullion, and doing your homework can help you in both the short- and long-term.
  • Research dealers, companies, and even banks before you buy. Make sure you’re involving yourself with a reputable seller and that you’ll be able to secure the investment either in your home or, even better, under the watch of a custodian at a financial institution. Working directly with a custodian will protect the investment and make it simpler. After all, custodians deal with these sorts of transactions all the time and know the ins and outs of the process. They also likely know the signs of fraudsters.
  • To further secure your investment, you should request a certificate of authenticity that clearly declares the precious metal’s content and value. That said, don’t take the word of a certificate. Research the company behind the certificate, as they can be fabricated.

A Few More Benefits of Bullion

Precious metals, due to their tangible, hold-in-your-hand nature, are considered physical wealth. As such, it can be easily transferred and easily accepted. Its value holds and is recognized the world over. Finally, there is no risk from additional parties. There is no extra verification, contract, or fulfillment duty in another person or organization’s hands. What you have is physical, in-person wealth.

Swiss America is a leader in gold, silver, and precious metal bullion. With decades of experience in the market and thousands of satisfied customers, we’re known for quality and reliability. If you’re looking to supplement your retirement with bullion, don’t hesitate to contact our representatives today.

Author: Carol Trehearn

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