Buy and Sell Gold and Silver - How It Works and Expert Tips

hi i'm mark yaxley welcome back to inside the vault following season one we received a lot of questions from viewers who had enjoyed what they saw in the videos but wanted to know how to buy precious metals it might seem like a very simple question but there are actually a lot of intricacies and details when it comes to buying gold and silver especially when it's your first time so in today's episode we're going to explain how to buy precious metals and also answer some of the most frequently asked questions about buying gold and silver and taking delivery we have a lot to talk about so let's get started [Music] [Applause] [Music] so there are many different ways that you can gain exposure to precious metals for example you could buy a precious metals etf or buy into a fund you could buy mining stocks or of course you can buy physical bars and coins because owning physical bars and coins is the only way that you can own the metal as your own personal property removing all third party risk that's what we're going to focus on in today's episode rule number one when buying precious metals is always buy from a reputable source so the question is what makes someone reputable i look for things like longevity so how long is the business being selling metal for what kind of customer reviews can i find about them online do they have a good reputation within the local community if i'm buying from a local dealer these are all things you're going to want to look for before you even consider your first purchase i always encourage people to consider using a local option when they're making their first purchase of precious metals the reason that i say that is that you can go down to the shop and speak one-on-one with an experienced person who will be able to take the time and answer all the questions that you might have so if you do have a local coin dealer who's reputable who's been in business for a long time they might be a good option for your first purchase but local coin dealers do have some limitations as well it can be in terms of the product selection that they offer you or if you're looking to make a larger purchase they might not have the capability to service your order at least not immediately in the case of a larger purchase you might have to look at a precious metal dealer that's in another city that has more cash flow capacity or you might have to go online if you live in a big city chances are you have access to a larger number of dealers they'll have bigger offices and you'll have access to a wider variety of products that you can select from but again you want to make sure that you're dealing with someone that has good customer feedback and who's offering you fair prices it can be a little bit hit or miss but if you base your decision on reputation chances are you're going to be dealing with a company that's been around for a long time and the only way they would have survived over the years is by offering good customer service and fair prices your final option of course is to go online to buy precious metals now there are a number of dealers online like in any industry you're going to find a plethora of options to buy from and this can be a good thing for the consumer because all of these companies are competing for your business online that tends to drive down the prices that they're going to offer you also they're going to have to offer you shipping and delivery services so that you can take delivery of the metals to your home or to your business some online retailers will also offer you the ability to store your precious metals in one of their vaults or a storage program that they're offering now like with anything else you do online you are going to want to proceed with some caution again do your research to make sure you're buying from a reputable dealer and a website that looks fully secure because you are going to have to provide some of your personal information and data in order to complete the transaction a word of caution we strongly advise against buying from pawn shops or retailers with a very limited product selection also i have heard some horror stories about people receiving fake or replica bars from some large online retailers such as ebay or alibaba so if you are going to buy from sources like that make sure you're buying from a reputable seller and never buy precious metals for less than the spot price you won't be getting a deal you're most likely going to be getting a fake whenever you're buying gold or silver you can expect to pay at least a spot price and probably a small premium over it anything less is probably not a real product once you've found a reputable dealer the next step is to determine which products best fit your portfolio which products should you buy in season one we did two full episodes dedicated to gold versus silver and bars versus coins so i recommend you spend some time and check those out today we're going to focus on four basic questions that you should answer number one which metal type or types would you like to own are you only going to invest in gold for example or do you want a more diversified portfolio second are you looking to buy coins or bars and if you're going to be buying bars are they going to be smaller format or larger format you can start as small as 1 ounce or you can buy 10 100 even up to a thousand ounce silver bars so you're going to want to decide which format which size of products you're going to be buying number three obviously a very personal question is what quantity or what value of precious metals am i looking to invest you're going to want to determine this number before you get serious about shopping because it is going to affect the options available to you and lastly are you going to be taking delivery of the metals to your home or are you going to be looking at storage options where the metals are kept safe and secure and insured inside of a vault when talking about the type of precious metals that you're going to be purchasing there are five metals that make up the precious metals family you have gold silver which most people are familiar with but you also have platinum palladium and rhodium so you're going to want to decide is my portfolio going to consist of one single metal or is it going to consist of multiple metals most portfolios have both gold and silver in them but i personally recommend that you consider owning some platinum group metals as well to add even more diversification and potential upside to your precious metals portfolio when deciding whether or not you're going to be buying coins or bars each will come with their own advantages and disadvantages generally the primary advantages of buying coins is reputation liquidity and a potential better sell back price when it comes time to liquidate the disadvantage being that you're generally going to pay a little bit more for coins when buying compared to bars the primary advantages of buying bars is the premium that you're going to save when purchasing versus coins which can be a little bit more expensive on the flip side the disadvantage being that you can expect to get a little bit less money back when you're selling your bars and also you're going to have to sell the entire bar if you own for example 100 ounce silver bar or a thousand ounce silver bar you're gonna have to sell the whole thing and that can affect the liquidity of that product in certain smaller markets now when it comes to the value of your investment how much precious metals are you going to buy that's an entirely personal decision i can't tell you how much money to spend on gold and silver typically financial advisors do throw out a number of owning about 10 percent of your overall investment portfolio in precious metals but based on research that i've seen that number can actually be significantly higher anywhere between 20 to 30 percent especially during times of crisis or pre-crisis now in terms of buying there are two approaches that you can take you could cost average in to your overall precious metals position which means you can make multiple smaller transactions but the disadvantage there is that you might pay a slightly higher premium for the products that you're buying because you're buying smaller quantities each time multiple times over and over again the other option is you could come in for one larger bulk buy and benefit from volume discounts that are usually offered by retailers now let's talk home delivery versus private storage again it's a very personal decision i would recommend that you keep some precious metals at home the idea of owning precious metals is to create security for yourself and for your loved ones and having it close to home has its benefits however there is a certain line in the sand that you have to draw considering the physical security of the precious metals and also the people that might be in the house where those precious metals are stored so generally speaking i wouldn't recommend that you store more than ten thousand dollars worth of precious metals at home there's also a question of insurance are you going to be able to get insurance for the precious metals that you decide to keep under the bed you have to speak to your insurance company about that but i know that it can be difficult for some private people to obtain that insurance at home now when it comes to either taking delivery or storing in a private facility again that's a very personal decision we're going to spend a whole episode during season two talking about home storage the other option that you have is to store those precious metals in a private facility like swp or other reputable vaults that are available to you these places were purposely built to store precious metals all of the bells and whistles exist to keep your precious metals safe we also offer the insurance necessary that if anything were to ever happen to your precious metals they would be replaced at their full market value which probably wouldn't be the case if you chose to store them at home and something were to go wrong you receive reports you receive third party audits and in some cases you can actually come down to the vault and visit your precious metals so you don't have to feel like you have no access to them i would recommend private storage for any amount of precious metals above 10 000 i know this might feel a little bit like information overload but the good news is you're almost there buying precious metals is one of the simplest investments you're ever going to make once you've decided on the types of products and quantity that you're going to purchase the next steps are very straightforward first of all contact your precious metals dealer and they're going to provide you with a quote once you've reviewed the quote and you accept the total cost of the order you're basically going to confirm that quote that's going to be done either by email online or over the phone once you've confirmed your quote you've entered a legally binding agreement with the dealer for that set of precious metals at the determined price if the market price were to go down or up after you've already locked in the price your price is going to be respected the total that the dealer and yourself have agreed upon is going to remain the same so you no longer have to worry about the market price of the metals you're buying the next step is to pay for your precious metals now some dealers do ask you to pre-fund your account before you can even place the order especially when you're buying a lot they'll need the cash flow in order to cover the order however in most cases you can place the order lock in the quote and then pay for your order afterwards generally speaking precious metal dealers like to be paid by bank wire because it's very fast and efficient the funds are moving between bank accounts very quickly other payment options include check cash or even bitcoin these days so you can speak to your precious metals dealer about their preferred payment methods once your order is paid for it can either be picked up delivered or sent to a private vault if that's the option that you selected if you selected during the course of the transaction to have your order delivered you're going to want to ask the dealer what delivery method it is generally speaking you're going to want the shortest amount of delivery time possible a lot of dealers in the industry use a two-day service with fedex ups or usps if you happen to be in the united states the other important element of taking delivery of precious metals is to make sure that your shipment is fully insured from door to door until you sign for it one tip if you do live in a larger building either a condo building or an apartment building you're going to want to make sure that you clearly indicate to the dealer that there's a required signature for the package so that when it's delivered to the building it isn't left in a common area like the lobby you don't want your neighbor getting an early christmas gift we also received a few questions from our viewers about selling precious metals they wanted to know if that was a difficult process in fact it's very simple and it looks similar to when you're buying precious metals the first thing you're going to do is contact the dealer and ask them to provide you with a quote if you find that quote acceptable you'll lock in the transaction so the price will be fixed and then you'll have to deliver the medals to them either in person shipping them and if you do ship them and you want to make sure that they're insured otherwise if they're in a vault they'll be transferred from your account to the dealer's account thanks for watching today's episode we hope that you learned just how easy it is to purchase precious metals of course if you have any follow-up questions don't hesitate to reach out you can email us at info swp cayman.com you can always tweet us at swpgold or subscribe to our youtube channel and educate yourself by watching our great videos thanks see you again [Music] [Applause] [Music] soon you

Channel: Strategic Wealth Preservation - SWP

Views: 104,613

Rating: 4.9164348 out of 5

Keywords: Offshore Storage, precious metals, metal, SWP, Strategic Wealth Preservation, gold, gold bars, gold coins, bullion, bars, management, finance, silver, silver coins, silver bullion, gold bullion, palladium, platinum, secure, invest, investment, vault, cold storage, offshore, Cayman Islands, gold stacking, silver stacking, deposit, safe, security, deposit box, segregated, travelling with gold, travelling with silver, storing gold, storing silver, buy gold, sell gold, buy silver

Id: 0mHmrNdaiBY

Length: 13min 54sec (834 seconds)

Published: Fri May 08 2020