Your First Bullion Investment is Gold or Silver

Nowadays, many people want to invest their money into precious metals, most notably gold and silver. Before investing in either, you have to know some basic information about bullion investment. In this article, we outline some of the guidelines which should help you to decide on your first investment. Below you will find detailed information about considering your first bullion purchase; deciding between a varied selection of unique products, and finding the most suitable merchants that will match your needs.

So, which precious metals are the most suitable as a first investment?

Assuming you have taken the time to research the many factors of investment (risk, personal wealth, market rates, etc.) for first time investors Gold and Silver tend to be the most popular choices of the precious metals. A large number of people are often drawn to Investment Gold due to its intrinsic value and added benefits of being VAT exempt in the UK. Also, Certain Gold coins are free of capital gains tax which can be appealing for investors of larger sums.

Compared to Gold, Silver typically has a far lower value meaning that storage issues can arise when looking to invest large sums of money into Silver. The price of Silver is somewhat more volatile than Gold making it more suitable for investors who are more open to risk. Silver can yield high returns but also lose value rapidly.

Is it better to invest in Bars or Coins?

There is a large amount of choice when it comes to bars and coins as both offer a variety of designs and sizes. Aesthetics can also certainly be a decisive factor in the matter. So, let us take a look at the pros and cons of both product types.

Bar Pros:

-          Most bars are sealed in protective packaging.

-          Typically produced in 24 carat (for gold).

-          Larger bars often offer lower premiums.

Bar Cons:

-          Smaller bars often have higher premiums.

-          Higher market risk, if bought at smaller quantities

Coin Pros:

-          Highly collectible.

-          Legal tender status.

-          Can be free from VAT.

-          Can be free from Capital Gain Tax.

Coin Cons:

-          Premiums are generally higher than that of bars.

-          Coins typically don’t always come with certificates – unless they are a set.

Where is the perfect place to buy precious metals?

Be sure to buy from a bullion dealer with a good reputation. Research the business online, read    independent reviews and get a feel for the company that you are considering. Ring a few bullion dealers and ask questions. Are they happy to speak to you and explain the way in which they work or do you get the impression that you are wasting their time unless you purchase from them immediately? Of course we would prefer that you buy from www.ukbullion.com, we are happy to discuss any aspects of precious metals that you are unsure of or confused about.