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
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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
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
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soon
you