Approximately 10.8% of Americans own gold and 11.6% own silver. Many traders and investors use this common asset as a way to diversify their portfolios.
Gold and silver stocks or futures are one way to invest in precious metals, but it’s a complicated and risky process. Buying and selling coins is a simpler and more effective method.
Read our guide to learn about buying, selling, and trading silver and gold coins.
Buying, Selling, and Trading Gold Coins
Gold coins are an easy way to diversify your investment portfolio. They offer advantages such as:
- No liability
- No counterparty risk
- Competitive returns
- Downside protection
Before buying gold coins, decide how much of their investment portfolio you want to be taken up by the precious metal. Richard and Robert Michaud recommend a ratio of approximately 2-10%.
Check the current value of gold and gold coins before buying or selling. If you’ve got a rare coin or one that’s jumped in value recently, sell it while the market is hot.
The sought-after unicorn in the world of trading and selling coins is the gold bug.
These investors want the majority of their investments to be in gold. They won’t be scared away by market downtrends and are more interested in purchasing large amounts of bullion. Most of them work in the retail industry and sell your gold to other buyers.
Buying, Selling, and Trading Silver Coins
Silver isn’t an inferior precious metal. It’s 1.5 times more volatile than gold, and sales of physician coins and bars recently rose to a 4-year high.
Silver coins are more affordable than gold but are an equally reliable store of value. Bullion fetches higher premiums than bars because of the labor that it takes to make them.
Silver also gets better returns than gold because it’s used in a wide variety of products, including:
- Energy creators (such as batteries and solar panels)
- Medical devices
Look at the value of your coins before buying, selling, or trading them. The most popular and consistently valuable silver coins are the 1-ounce Silver American Eagle and the 1-ounce Canadian Maple Leaf.
It’s not difficult to find investors who are interested in buying coins made of this valuable precious metal. Instead of looking for retailers who want to resell your pieces, try to find a manufacturer who’d be willing to pay you for the material they’re made of.
Remember that you’ll also need a supplier if you want to sell and trade precious metals. Finding the right place to buy gold and silver coins ensures you get the best returns on your investment.
What to Know Before You Start Buying, Selling, and Trading Coins
Many households have coins made from precious metals sitting around their homes. They’re the perfect way to diversify an investment portfolio in a volatile market.
Buying, selling, and trading silver or gold coins is an easy alternative to purchasing stocks or futures. It involves a bit of research to find the right pieces and buyers, but it can yield large returns.
Read the rest of our content for more investing advice.