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- Precious Metals
Things You Should Know
- A precious metal is a rare metallic element of highly durable economic value. Historically, precious metals were important as currency, but are now regarded mainly as investment and industrial commodities.
- There are many uses for precious metals. Gold, Silver, Platinum and Palladium are all used in the jewelry industry. Most of these metals are also used in the manufacture of electronic circuitry as well as the dental industry. Platinum and palladium are used in the automobile industry and have applications in fuel cell technology. Silver is used in the production of photographic film.
- Most professional advisors agree that a diversified investment portfolio should include some liquid assets. Precious metals are unique assets in that they are real (have real value) and liquid (easily traded), unlike property which is real but not liquid.
- Precious metals are measured by troy weight in grams or ounces. The purity or "fineness" is measured in parts per thousand. Note that 100% pure bullion is not possible.
- Precious metals in bulk form are known as bullion, and are traded on the commodity markets. Bullion metals may be cast into ingots, or minted into coins. The defining attribute of bullion is that it is valued by its mass and purity rather than by its face value as money.
- Price is determined on the open market. There is an open "spot" market in some part of the world virtually 24 hours a day. New York, London, Sydney, Hong Kong, Tokyo, and Zurich are where most trading activity takes place. Buy or "bid" prices are usually below the spot price while sell or "ask" prices are usually just above. Call for price quotes.
Do Your Own Research
London Coin Galleries does not investment counsel, therefore it is highly recommended that you do your own research prior to purchasing precious metals as an investment. All investments involve risk - precious metals are no exception.
Long Term Investment
Precious metals should be considered a long-term investment. Be prepared to hold them for ten years or more to maximize your potential for gains.
Precious metals are readily liquid almost anywhere in the world. London Coin Galleries is a buyer and a seller in any market climate. A quick phone call will provide you with the bid and ask of any bullion-related product.
London Coin Galleries does not offer a storage depository service. We recommend you store your precious metals in a bank safety deposit box or home safe whose contents are covered by your homeowner's insurance policy (you will need to speak with a representative about their specific requirements).
Individual Retirement Accounts
American Gold and Silver Eagles may be used to fund IRA investments. London Coin Galleries does not offer a service relating to this type of investment.
State and Federal Laws
There are State and Federal laws which regulate the purchase and sale of precious metals.