Discover the Basics of Investing in Precious Metals

Study Notes

Major Considerations for Investing in Precious Metals

When buying Precious Metals, an investor incurs a total cost that includes spot, premium, taxes, and other fees.
Sovereign bullion coins are the most popular Precious Metals people buy for investment purposes due to their minted quantities, face values, and ability to maintain their values and premiums.
Sovereign coins have intrinsic value due to their metal content and collectability and usually have set mintages and a strong market for purchase and collection, making them a formula for long-term preservation of value.
Bars and rounds are a more cost-effective way to invest in Precious Metals and have lower premiums over spot due to lower production costs.
Numismatic coins become highly collectible when certified as being in exceptional condition by third-party grading services or when minted in limited quantities, and their collectability can affect their overall values.
Historical or vintage coins can become more valuable if grading companies certify their authenticity and condition and are acquired as collectible pieces because of their condition, design, and rarity.
A coin's rarity is defined by its mintage and population, where mintage refers to the number of coins originally minted, and population stands for the actual number of those coins remaining in existence.
Collecting coins is informally known as the "hobby of kings" and can be gratifying due to a coin collection's historical significance, ability to spend or barter with coins, and unparalleled liquidity.
Coins are legal tender and can be spent when a collector is in financial hardship, making them more liquid than other collectible items like baseball cards, stamps, and comic books.
American Eagles are one of the few types of sovereign coins allowed by law to be used in individual retirement accounts, or IRAs, due to their backing by the U.S. Government and can serve as buffers against inflation and the volatility of the stock market.
Precious Metals IRAs hold physical bullion coins or bars, and only selected products are eligible for those programs, meeting minimum content purity standards.
A balanced portfolio should include an allocation of precious metals, and investors should diversify among different precious metals to ensure that their portfolio is well represented and diversified.

Description

Are you interested in investing in precious metals but not sure where to start? Take this quiz to learn about the major considerations you should keep in mind when investing in these valuable assets. From sovereign bullion coins to historical numismatic coins, this quiz covers the different types of precious metals investments available and their unique characteristics. Discover how to calculate the total cost of investing in precious metals, understand the importance of diversification, and learn about the benefits of including precious metals in your investment portfolio. Take this quiz