Buying physical gold or silver
as an investment is not always as straightforward as it sounds. Novice
investors often get lost in a variety of options: “Should I buy minted bars or sovereign coins?” “Maybe that limited edition coin would be a good investment?”
Sensible investors evaluate bullion options by the price and premium on the gold spot price. But the premium is only one part of the equation. It doesn’t necessarily mean that you’ll get that premium back upon the sale.
Worse, there are unscrupulous dealers out there. They will try to
trick you into buying numismatics and other collectibles that have a
huge premium and won’t retain their value over time.
As a result, it’s essential to get an understanding of precious metals before dipping your toes into this market.
In this article, I’ll answer some of the most important questions you should ask yourself before buying precious metals.
(Kitco News) – Gold
and silver prices are posting moderate corrective gains in
early-morning dealings Friday, following the sharp losses suffered
Thursday. Overnight, gold did drop to a three-week low, while silver
hit a three-month low. Some mild U.S. inflation data just released is
also helping out the precious metals market bulls. April gold futures
were last up $6.10 an ounce at $1,295.90. May Comex silver was last up
$0.122 at $15.09 an ounce.
The just-released U.S. personal income and spending report for
February came in at up 0.2%, which was in line with market
expectations. The January personal consumption expenditures price index
came in at down 0.1% from December and up 1.8%, year-on-year. Personal
spending in January came in below expectations, at up 0.1% from
December. These numbers fall into the camp of the U.S. monetary policy
doves, who do not want to see U.S. interest rates rise anytime soon.
Metals prices did up-tick after hit report hit the news wires.
Asian and European stock indexes were mostly firmer overnight. U.S.
stock indexes are pointed toward slightly higher openings when the New
York day session begins. Today is the last trading day of the week, of
the month, and of the quarter, which makes it an extra important
trading day from a charts and technical perspective. Traders and
investors are exhibiting a bit more risk appetite late this week, which
has buoyed world stock markets but has helped to sink the safe-haven
gold and silver markets.
The U.S. and China held high-level trade talks in Beijing late
Thursday and Friday. U.S. Treasury Secretary Steven Mnuchin said those
talks were productive. However, Larry Kudlow, President Trump’s
economic advisor, said on Thursday any final U.S.-China trade accord is
likely to come months down the road. There is no clear consensus in
the marketplace on the eventual outcome of the U.S.-China trade talks,
which means that when any final result is announced it is likely to
cause at least some volatility in some markets.
The U.K. Parliament is likely to vote Friday on another option
offered by Prime Minister Theresa May to break the Brexit deadlock.
There are not high expectations for her latest plan to be approved by
the MPs. Today is the day the U.K. was set to leave the European Union.
May’s options moving forward on the matter are increasingly limited,
with speculation of a general election being held in the near future.
The key outside markets today see the U.S. dollar index higher and
hitting another 2.5-week high today. The USDX is back near its recent
multi-month high. Meantime, Nymex crude oil prices are higher and
trading around $60.00 a barrel. Oil prices are still trending higher on
the daily bar chart even though price action has been sideways this