Buy/Sell/Trade Precious Metals: Understanding the Ins, Outs, and Everything Between

Buy/sell/trade precious metals

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Silver and gold have long been valuable precious metals. Even from centuries ago, gifts of gold and silver were gifts for royalty. Now, nearly anyone can own gold or silver. In fact, most people do. Perhaps you own gold or silver rings or necklaces. Because precious metals like gold and silver are so readily available, they may not seem like a big deal. However, there is more worth to precious metals than jewelry.

Precious metals can provide you with a measure of protection in the event of financial or economic crises. Consider the fact that the U.S. stock market has seen its fair share of ups and downs, too. Many stocks took a hard hit in recent years, falling to all-time lows and leaving many people reeling. There were two stocks, however, that did not seem to take the brunt of the impact.

In 2016, gold and silver stocks earned 7% YTD gains, which blew nearly every other stock away.  Investing in precious metal mining stocks is not without risks, but it seems to provide fewer risks than standard stock investments. In 2016, investors saw incredible gains from their investments, thus proving that buying and selling precious metals can prove lucrative when done right.

Precious Metal Values

When you buy precious metals, you must understand that the value will often fluctuate. In fact, the value of the metal is not used to help manufacturers and investors only. It is also used to monitor economic and market states. The market determines the value of metal based on supply and demand. When supply is low, and demand is high, the value rises. When supply is high, the value drops.

Unfortunately, supply and demand information is not always readily available. In fact, many professionals would prefer to avoid transparency when it comes to supply and demand. However, it is one indication of the future value of precious metals that can help you determine if an investment is worthwhile.

Keep in mind that the economy is yet another influential factor. When the economy suffers, consumers are less likely to make purchases. By the same token, when the economy flourishes, people are more apt to head to the stores and spend money on various products. Of course, even during economic hardship, people will still seek out luxury items, so luxury items made from precious metals will remain at a high value.

Investment Options

Whether you want to know how to sell precious metals or buy them, you must realize there are a few investment options available. You have a variety of metals available to you. Make sure you choose a metal that you feel will provide you the best results, whether that it is gold, silver, or platinum.

Once you choose your metal, you will need to choose how to make your investment. You have a few options. For instance, you may prefer commodity EFTs, common stocks, and mutual funds, futures and options, bullions, and certificates. Make sure you understand each of your options before jumping into any investment decisions.

Commodity EFTs

Commodity EFTs offer certain benefits. It is often a popular method used to invest in precious metals. You can purchase any of the three precious metals available using EFTs. Not only is it a convenient way to buy or sell gold, silver, and platinum, but it is also the fastest way to buy and sell. You can sell your investment in just a few clicks when the time comes. Physical forms, such as bullions, do not provide this benefit.

Common Stocks and Mutual Funds

You will find that common stocks and mutual funds are also beneficial in many ways. If you are new to metal mining investments, this is the option for you. Only people who have a fair knowledge of mining stock values and they work should choose another option. With common stocks and mutual funds, you can work with fund manager who has solid portfolio to protect your investments.

Futures and Options

Futures and options are popular, especially among hard hitting investors who like to bet big. If you are afraid to lose funds, do not opt for futures and options. The benefit of futures and options is that you stand to gain the largest profit, but you also stand to lose the most compared to other investment options.


Physical forms of gold, silver, and platinum offer rewarding benefits. You physically own your investment. You can see it and hold it. You can ensure that it is yours and in your possession. Coins, bars, and other forms of bullion also come with risks. You cannot sell physical investments nearly as quickly. Scammers are more likely to use coins and bars to rob a victim of their hard-earned money.


Finally, you have certificates. Certificates offer the benefit of physical precious metal ownership. The certificate offers proof of your ownership, but you do not have to worry about transporting the metal to you or even storing it. Instead, it stays stored in a safe, secure place. The only thing you must worry about is safely storing your certificate. Unfortunately, the certificate holds no value in a sale, which means it can take time to sell your investment.

All-in-all, precious metal investments provide you with the comfort of knowing you have assurance in the event of any upheaval within the military, politics, or the financial world. Keep in mind that metal is not subject to intrinsic value. They do not carry the risks of credit. Unlike money, you cannot print more silver or gold, which further secures your asset.

Mistakes to Avoid

If you are a new investor, there are some mistakes you will want to avoid. Whether you are buying, selling, or trading precious metals, you must remember that even the smallest mistake can cost you. The following are just some of the mistakes you need to avoid at all costs.

Price Watching

Make sure you always keep an eye on the rise and fall of precious metal prices. You would be surprised to learn how many people purchase precious metals at an insanely high price. Rather than making money, you will lose money if you purchase when prices go up. You should always buy when prices drop, so you can make money when they go back up.

Price Comparing

Make sure you also compare prices. Although there is usually a standard value set on gold, some companies will offer a better price than others. Make sure you avoid purchasing from trading companies that have the highest prices. Always compare prices and portfolios. Stick with a company that offers decent prices while making sure they also have a solid and trustworthy portfolio.

Buying Knowledge

Make sure you apply buying knowledge, too. Just because you come across something that is gold or silver does not make it worthy of a purchase. You shouldn’t buy just anything created from a precious metal. Keep in mind that most jewelry or even old coins will prove troublesome when you try to sell them. Steer clear of scrap precious metals since most are not pure.

Choose Your Source

Always research the source of your purchase. New investors often make the mistake of buying fake bullion because they did not research their source properly. Stay away from bid sites, like eBay. Too many people can take advantage of new investors by tricking them into buying a precious metal that is less than precious. Instead, you gave up your wages for something of little to no value.

Diversifying Your Investments

Make sure you diversify your precious metal investments. Choose pieces that are both large and small. If you purchase small bars of gold, silver, or platinum, make sure you also purchase large ones. If you stick with buying all large bars, you will find that you cannot simply split the large bar when someone wants to purchase a smaller amount.

Purchase Amount

When purchasing precious metal, do not make the mistake of buying too much. You might think that it is a clever idea to buy as much as you can because you will have amassed a great deal of valuable metal. That is a mistake too many new investors tend to make. If you put all your money into your investments, you will find that you have next to no money left.

For starters, you should never invest more than you could stand to lose. If you cannot afford to lose $2,000, do not invest $2,000 in precious metals. If all you can stand to lose is half that, only invest half that. Although the goal is to make money from your investment, keep in mind that it is always possible to lose the money you invest.

By avoiding these mistakes and paying attention to the helpful information given, you can be well on your way to successful buying, trading, and selling of precious metals. As a new investor, you should make sure you start off small and work with a manager at a trading company to help guide you as you go.

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