Buying physical gold or silver as an investment is not always as simple as it sounds. New investors are often lost in the various options: “Should I buy minted bricks or sovereign coins?” “Maybe the limited edition coin is a good investment?” Savvy investors value precious metals options by price and premium over the silver price Australia. But the premium is only one part of the equation. This does not mean that you will receive a premium when you sell. Worse, there are unscrupulous sellers out there who will try to trick you into buying numismatic coins that have big premiums and will not hold their value. As a result, it is important to understand precious metals before plunging into this market.

 

Should I buy gold or silver bars?

 

Silver has attractive properties and gold is the best investment for the average. Gold has a very liquid market, mostly driven by investment and jewellery demand. However, the price of gold is also less volatile than silver. Silver, meanwhile, is more abstract and is tied to the economic activity. Silver is used a lot as an industrial metal. As such, silver can be attractive in cycles when the price of the metal is cheap. The main advantage of silver is that it costs less than gold. Therefore, it is easier for retail investors. However, silver price Australia is more volatile.

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Bars vs Bullion Coins

 

Which is better as an investment? Bullion coins like Gold American Eagles are the best type of precious metal for most investors. This is because sovereign coins are easy to recognize, easy to sell, and usually sell for higher premiums than bullion. You can buy smaller bars like a 1 oz bars, but these are harder to sell and the transaction costs are higher. For institutional buyers and other people who want to invest in a large amount of gold is still a reasonable choice. Coins are still a better choice for anyone just trying to enter the market because of their low premiums. They are also very liquid and easy to buy and sell.

 

What are best gold coins to invest in?

 

For American investors, the American Silver Eagle and Canadian Silver Maple Leaf coins are the most popular. For European investors- the Austrian Philharmonic are  good. The South African Krugerrand bullion coin is also a good choice investors. Other good coins to buy with reasonable liquidity include the Australian Kangaroo coin. Expect to get top silver price aud offers if you have either one of these coins.

 

Investors should stay away from sovereign currencies from lesser-known countries. They should also avoid special edition commemorative sovereign coins. These coins are usually more expensive to buy and sell for less than more well-known coins.

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Where can you buy the best precious metals?

 

The best way to buy physical bullion is through an online dealer that offers the London Bullion Market Association (LMBA) over-the-counter vault buying program and stores. Investors should avoid physically holding their gold or silver unless they believe an emergency has occurred. It is safer to keep your bars in a secure safe. It’s also easier to sell your metals that are stored in a secure vault because you can’t break the chain of custody.