It is really important for an investor to first understand the economy and the financial systems prevalent in the market before one decides what to invest in. Precious metals can be a great hedge for inflation and typically retain value; in the 1800’s you could buy a decent suit with an ounce of gold in 2012 you can buy an excellent suit with that same ounce.
Here are a few tips to consider when purchasing gold or silver:
- Always take delivery.
- Never buy premium if you can avoid it.
- Buy bullion for business, numismatics for fun.
- Buy silver first, then gold.
- Buy small gold first, then large.
- Never buy exotic coins or modern rarities or anything you don’t understand.
- Know your dealer.
- What governments can’t find, they can’t steal. (private vault storage)
- Never swap bullion coins for U.S. $20 gold pieces.
- Never break the law.
Performing due diligence is key to understanding any investment not just precious metals; Good Luck and Happy Investing!