After over 35 years in the precious metals industry, I’ve gained quite a bit of first-hand knowledge about successfully investing in gold, silver, platinum, and palladium. As the owner of CV Coins and Collectables, let me share some personal insights on everything from getting started to avoiding pitfalls when buying precious metals.
What is Investing and Why Precious Metals?
Investing simply means strategically putting money into assets expected to appreciate over time. Stocks, bonds, real estate, and commodities like precious metals are common vehicles for growing wealth this way. Precious metals specifically have appeal because they provide portfolio diversity and have historically moved independently from other equities and securities.
Gold and silver, in particular, have been universally recognized as stores of value for centuries thanks to inherent properties like scarcity, portability, fungibility, and universal appeal. This makes them effective hedges against inflation or currency devaluation. Many prudent investors today allocate 5-20% of their overall portfolio to physical precious metals holdings.
Where to Buy and Where Not to Buy
I always recommend only purchasing precious metals from established dealers with long track records and strong customer reviews. Avoid TV shopping channels, online dealers with no verifiable business name, flea market pop-up booths, and individual sellers advertising on Craigslist or social media – far too risky for most buyers. For individuals looking to sell their precious metals, coming directly to a reputable dealer like CV Coins and Collectables also ensures the fairest payout.
What to Buy and What to Avoid
I suggest new investors focus their purchases on well-known minted coins and industry-standard bars: American Gold Eagles, Canadian Gold Maple Leafs, American Silver Eagles, silver rounds, 100-oz silver bars, and 1-oz gold bars. These are all liquid products widely recognized by dealers worldwide.
Avoid collectible numismatic coins if your sole goal is to securely acquire precious metals by weight – the higher premiums you pay are for collectibility, not simply precious metal content. Similarly, steer clear of certified coins graded MS65 and higher. The exponentially higher premiums paid for proof-like surfaces do not correlate to intrinsic metal value.
Tips for Getting the Best Possible Deal
Before purchasing, check the dealer’s buy/sell spreads, which indicate their margins. Anything under 5% on gold and 10% on silver is considered competitive. Also, inquire about any potential quantity discounts or lower premiums on larger volume purchases. Reputable dealers will readily share this information.
Ask what types of testing and authentication practices the dealer employs when buying metals from customers or wholesalers. At CV Coins and Collectables, we verify every piece of precious metal that comes through our doors, verified with certificates and documents to ensure they’re genuine. You want to ensure you’ll receive genuine precious metals in any transaction.
Common Myths and Misconceptions
Many new investors have misconceptions that can undermine their success. For example, buying certified proof coins does not mean you receive extra precious metal—you simply pay higher premiums for the special proof-like finishes. However, for collectors who are on the hunt for rare treasures and not only viewing these products as an investment, this pricing makes sense. Similarly, vague terms like “numismatic value” do not guarantee future price appreciation. Premiums must be carefully weighed relative to the underlying spot price.
Outlandish claims about new exotic precious metal products or freezing/ultrasonically cleaning coins to “prevent tarnishing” are also misleading gimmicks, not real advice. Always seek out qualified guidance when investing in precious metals.
I hope these tips from my 35+ years of precious metals experience empower you to navigate the market successfully. When you’re ready to buy or sell physical gold and silver, visit the CV Coins and Collectables website or visit our showroom here in Chula Vista, CA. Our expertise in buying, selling, and appraising is second to none. Speak with me directly and get started securing your financial future.