Precious Metal Buying Tips

A precious metal is a metal with rare metallic chemical element and due to that is of high economic value. Precious metals are less reactive than most elements, have high luster, and have higher melting points than other metals.

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Before buying precious metal jewelry, it is advisable to get some knowledge, about various precious metals and their characteristics. You can get detailed information on each and every aspect of all the three precious metals in our precious metal guide.

Precious Metal Buying Tips

These below mentioned precious metal buying tips will certainly help you in finding the most suitable precious metal for your jewelry, you are looking for.

• Gold, platinum and silver metals are widely traded and considered as precious metals due to their rarity and beauty.
• When you go out to buy precious metal jewelry, you must consider certain facts, about these metals, such as karat, color, design, craftsmanship etc.

Precious Metal - Gold

• Gold is an extraordinary and rare precious metal. Gold is a soft, highly malleable and most non-reactive of all metals and it does not rust or tarnish under ordinary conditions.
• Gold's purity is measured in karats and 24 karat (24K) is 100 % pure gold. Pure gold is very soft and pliable as well as it is more expensive and less durable than gold that is alloyed with other metals.
• To give strength and durability, gold is alloyed with metals like silver, copper, nickel and zinc. Usually in jewelry, alloyed gold of lesser karats (22K-10K) are used instead of 24K pure gold. Gold jewelry with 14K and 18K gold are highly recommended and most popular.
• Naturally gold comes in deep yellow color with metallic luster but when it is alloyed with certain metals then it creates various color hues like white, pink/ rose, green and the seldom found blue, purple and black.
• Raw, un-worked gold pricing is based on the karat ratio and the gold weight. But in finished jewelry or decorative item, gold pricing is based on a number of factors, including karat ratio, gram weight, design and craftsmanship.

Buying Tips for Gold

• When buying gold jewelry, it is advisable to go for either 14 karat or 18 karat gold jewelry. You should never buy 24 karat gold jewelry because it is too soft, less durable and more expensive. You should also avoid buying less than 10 karat gold jewelry, as it appears dull. In USA, no jewelry item can be marked or sold as gold jewelry that contains less than 10 karat gold.
• When you buy gold jewelry, you should always look for the karat mark that appears on the back of the piece. Other than this karat mark, every gold piece should also be stamped with a hallmark or trademark of its manufacturer and sometimes its country of origin. This description will assure you about the authenticity of the gold jewelry.
• When buying gold jewelry, you should determine the best suitable gold color.
• When you buy gold-filled jewelry, you must ensure that jewelry should have a layer of at least 10-karat gold as well as gold must be at least 1/10 of the total weight of metal.
• In the same manner, when you buy gold plated jewelry, you must ensure that jewelry should have a layer of at least 10-karat gold as well as gold must be at least 1/20 of the total weight of metal.
• You should not be confused between &#;solid gold&#; and &#;pure gold&#;. Solid gold refers to a piece that isn&#;t hollow whereas pure gold refers to a piece that contains 24 karat pure gold.

Precious Metal - Platinum

• Platinum is an extremely rare metal, even rarer than gold and due to its rarity, it is also an expensive metal.
• Platinum is a strong and dense metal that comes into its beautiful grayish white to silver gray luster.
• Platinum&#;s purity is expressed differently than gold. Instead of expressing purity in ratios of 24 parts, platinum standards are expressed as units of a 1,000 parts.
• In fine jewelry, platinum is used with purity level 90% to 95% because it is largely hypoallergenic and tarnish-resistant. Only for the remaining 5% to 10 %, it is alloyed with copper and titanium to increase the beauty of metal.
• Platinum jewelry maintains its color, brilliance and weight even when scratched, while other metals may lose their luster or become blemished or discolored.
• Platinum is normally not used in the full range of jewelry products due to its higher price. It is mainly used in ladies engagement rings, ladies wedding rings and men's wedding rings.
• Raw, un-worked platinum pricing is based on its purity and weight. But in finished jewelry, platinum pricing is based on a number of factors, including purity, weight, design and craftsmanship.

Buying Tips for Platinum

• When you buy platinum jewelry, you should always look for the purity description that appears on the back of the piece.
• Metal piece that contains at least 950 out of parts of pure platinum can be marked or stamped simply platinum or pt. or plat.
• Metal piece that contains at least 850 out of parts of pure platinum can be marked or stamped with actual parts of pure platinum along with the word platinum or an abbreviation. For example, 950 platinum, 900 Plat. or 850 Pt.
• Metal piece that contains less than 850 out of parts of pure platinum, but it has a total of 950 out of parts of platinum group metals (of which at least 500 parts is pure platinum), can be marked with both, the actual parts of pure platinum and the actual parts of the other platinum group metals in the piece. For example, the marking &#;650 Plat. 300 Irid.&#; means that the piece has 650 out of parts platinum (65%), and 300 out of parts iridium (30%), totaling 950 out of parts of platinum group metals, and 50 out of parts of other alloyed metals (5%).
• When you buy platinum jewelry, you should always remember that platinum is a very tough and strong metal and resizing is difficult for platinum items.

Precious Metal - Silver

• Pure silver is very soft metal with its lustrous white color. It is the second brightest reflector metal after liquid mercury and can be polished to a high sheen that even platinum can't achieve. It is normally stable in pure air and water but tarnishes when exposed to ozone, hydrogen sulfide or sulfur.
• The price of silver metal is very low and affordable as compared to other precious metals. Silver is currently about 1/50th the price of gold by mass.
• Instead of expressing purity in ratios of 24 parts like gold, purity of silver is expressed, like platinum, as units of a 1,000 parts. Silver with 999 parts (99.9%) purity is considered as pure or fine silver.
• Pure silver is too soft to be used in jewelry that it is normally alloyed with copper to give it strength and durability. A mixture of 92.5% of pure silver and 7.5% of copper is known as Sterling Silver. Whereas a mixture of 90% pure silver and 10% metal alloy is known as Coin Silver. Silver from south of the border is sometimes marked as Mexican silver, which consists purity ranges from 90% to 99%.

Buying Tips for Silver

• When you buy silver jewelry, you should always look for the purity description. You will usually find constant purity in silver items and you should not worry much about purity aspect of silver.
• Metal piece that contains at least 925 out of parts (92.5%) of pure silver can be marked or stamped simply silver or sterling silver on the back of that metal piece. According to the law, quality marked silver or sterling silver must also contain the name or a U.S. registered trademark of the company or person that will stand behind the mark.
• When you buy a jewelry item or silver item, which is marked with silver-plated or silver-coated, you must ensure that it is coated or plated a layer of pure silver by process of electroplating on a base metal.
• When an item of sterling silver metal is coated or plated with gold by process of electroplating then that item or piece will be marked as vermeil.
• Usually most jewelers can easily resize a non-gemstone silver piece, plus or minus two sizes. But resizing a silver piece with a gemstone can be difficult due to silver's properties when heated.
• When you buy sterling silver, you should always remember that it might tarnish and discolor very easily because silver and copper both react readily with sulfur to form sulfides.

General Buying Tips

• When you buy a jewelry piece, you must ensure that there are no visible blemishes or imperfections on the metal. You should also check to make certain that fasteners, clasps and catches work properly and are secure.
• When buying jewelry, you should look for craftsmanship and design. Your decision should be based on its symmetry, overall appearance and finishing.
• When you are buying jewelry for your loved ones, always keep their personality and preferences in mind.
• Always buy precious metal jewelry from a reputed and a known jeweler. If you don&#;t know any good jeweler, you should ask your family members or friends for their recommendations.
• Beware of jewelry store lighting that usually consists of quartz or halogen bulbs. These can deceive as they blast high-intensity streams of light into goods to make them look different.
• While buying precious metal jewelry, you should not be in hurry or in pressure. You should buy it at your convenience and at your own pace.

Now you can go ahead to buy precious metal jewelry with more confidence. So enjoy buying the best suitable precious metal jewelry by keeping the above mentioned buying tips in mind.

If you&#;d like to start investing in gold, it&#;s natural to want to find the cheapest way to do so. Buying gold at a good price can help you get more bang for your buck and maximize your investment. But finding the cheapest way to buy gold isn&#;t as simple as you might think. It involves juggling various factors, like fees, premiums, storage costs, and more.

In this article, we&#;ll explore the cheapest way to buy gold, including how different ways of buying gold can affect its price and tips for buying gold cheaply.

Different ways to buy gold

You have various options when it comes to buying gold, including buying physical gold, gold ETFs, gold mutual funds, gold futures, or gold mining stocks. Each method has its own advantages and disadvantages. For the sake of simplicity, in this article we&#;ll focus on buying gold bullion, gold ETFs, and gold mutual funds.

1. Physical gold (i.e. gold bars and bullion coins)

Buying physical gold is the oldest and most popular method of gold investing. This involves purchasing gold bullion bars, gold coins, or wearable bullion gold jewelry. You can buy investment-grade gold bullion from government mints or online precious metal dealers.

There are many benefits to owning physical gold bullion, including:

• You own the physical metal yourself
• You enjoy the security of possessing a tangible asset
• You don't need to rely on a third party (i.e. no counterparty risk).

An added consideration when buying physical gold is that you need to consider storage to protect your investment from theft or damage. Some people choose to pay for secure storage in a vault and others take out insurance to protect their assets. Depending on how you choose to store your gold, it can add extra costs to your initial investment.

See: What is the Proper Way to Store Gold?

Gold bars or gold coins?

In most cases, gold bars are cheaper to buy per ounce compared to gold coins. This is because they come with lower premiums. That said, we generally recommend saving gold bars for long-term investments as they&#;re less liquid than gold coins which are more easily sold in small portions.

If you&#;d like to learn more about gold bars vs gold coins, we have an article that outlines the pros and cons of each investment so you can discern which is best for you. Read here: Pros and Cons of Buying Gold Bars vs Gold Coins

How to buy physical gold

Buying gold bullion is an easy process. All you need to do is find a reputable dealer, choose the type of gold you want to buy, and voila, your gold investment will be securely shipped to your location.

No specialist knowledge is required and prices are transparent, making investing in physical gold the easiest option.

Tips for buying physical gold

To help you get the most out of your physical gold investment, here are some tips to keep in mind:

• Check the spot price: Always check the current price of gold before you purchase to make sure you&#;re getting a fair price.
• Ask questions: Don&#;t be afraid to ask gold dealers questions about which purchase is best for you. At StoneX Bullion, our team is always available to guide you through the gold investment process and answer any questions.
• Do your research: Before you buy gold from a dealer, be sure you&#;ve checked a few other places to find the best price. Read customer reviews and testimonials to ensure your dealer is trustworthy and has a good reputation.
• Buy bulk when you can: If you have the means to buy large amounts of gold at once, this can help you save money compared to spreading out your purchases.
• Tax implications: If you choose to buy legal tender gold coins, you may be exempt from paying VAT or capital gains tax on your investment. This might mean you&#;re able to purchase more gold for the same amount of money - but be sure to check your local laws and regulations for guidance.

Keep reading: Why Buy Gold? Reasons to Invest in Physical Gold Bullion

2. Exchange-traded funds (ETFs)

Gold ETFs offer a way to invest in gold without having to own the physical metal yourself. These are investment funds that are traded on exchanges, just like stocks. Gold ETFs track the price of gold or invest in gold mining companies and allow you to benefit from gold&#;s price movements without actually owning any gold.

There are many benefits to investing in gold ETFs:

• You don&#;t have to worry about storage or insurance costs
• You can buy or sell gold ETFs at any time in an instant
• Minimum upfront investment can be very low
• It&#;s the most cost-effective way to invest in gold.

There are, however, additional risks that come with investing in ETFs. Firstly, you don&#;t own the physical metal and so don&#;t benefit from having a tangible asset with intrinsic value. Secondly, there&#;s a lot of counterparty risk. If the ETF provider doesn&#;t back the ETF with enough physical gold, you could end up losing money.

How to buy gold ETFs

Buying gold ETFs is less straightforward than buying gold bullion, especially if you haven&#;t invested in stocks before. We recommend spending some time researching and studying the gold market before you start. Once you&#;ve wrapped your head around the process, you&#;ll find it&#;s quite simple.

The first step when buying gold ETFs is to find a broker and open a brokerage account. You can then use your broker's website to search for gold ETFs. Before you invest in an ETF, spend some time analyzing its past performance. When you've spotted a good one, simply buy it as you would a stock.

Want more information on Pure Metal? Feel free to contact us.

Tips for investing in gold ETFs

If you think buying gold ETFs may be the better option for you, here&#;s some advice to help with the process:

• Buy during dips: Gold ETFs are bought and sold on stock exchanges and behave like traditional securities. By carefully tracking prices, you might find an opportunity to purchase gold ETFs cheaper than gold&#;s spot price.
• Search for low commissions: You&#;ll likely have to pay commission fees when investing in gold ETFs, and these can add up quickly. Before you start investing, research for a reputable stockbroker with low commissions.
• Research ETFs: Every gold ETF is different and it&#;s important to carefully research an ETF before you buy. This includes checking that five-year returns match gold's spot price movements and searching for an ETF with a low expense ratio. At the time of writing, the best-performing gold ETFs include: abrdn Physical Gold Shares ETF (SGOL), SPDR Gold MiniShares Trust (GLDM), and iShares Gold Trust Micro (IAUM).

Continue Reading: Everything You Need to Know About Gold ETFs

3. Gold mutual funds

Like gold ETFs, mutual funds provide exposure to gold&#;s price movements without you needing to own and store the physical metal yourself. These involve spreading your investment across various gold-related assets, including gold mining stocks, ETFs, or physical gold. Gold mutual funds are a more diversified way to invest in gold and a better option for investors who don't want to choose individual stocks or ETFs themselves.

There are various benefits to investing in gold mutual funds:

• You don&#;t need to think about owning or storing gold
• Less research is required compared to ETFs
• Minimum investment requirements can be quite low
• Your investment is diversified across various companies.

That said, they can come with high management fees and carry the same counterparty risk that&#;s involved with ETFs. Like stocks and ETFs, you can purchase gold mutual funds via a brokerage firm or other financial institution.

Tips for buying gold cheaply

If you&#;d like to go the time-honored route of investing in physical gold, here are some tips to help you save money when buying gold:

Time your purchase

Gold&#;s price fluctuates often and is affected by various factors. We recommend studying gold&#;s spot price for a period of time to understand its movements. By watching gold&#;s price, you can time your investment when the price is low and save money.

Read More: What Drives the Price of Gold?

Buy gold in bulk

You&#;ll usually get the most gold for your money if you decide to make a bulk gold purchase in a single transaction. Of course, this will cost more upfront however it can save you money in premiums, delivery, and other associated fees.

Buy gold online

Online gold dealers usually offer the best prices for pure gold when compared to buying from in-person dealers, mints, or banks. This is because they have less overheads. That said, to avoid being scammed it&#;s important to research dealers carefully - see the next point.

Research dealers

Don&#;t just buy gold from the first precious metals dealer you find online. Spend a bit of time researching different dealers, comparing prices, and reading customer reviews to make sure they&#;re trustworthy. A highly reputable and secure precious metals dealer will:

• Be an LBMA affiliate member
• Possess the necessary licenses
• Offer a range of gold bullion from prestigious mints
• Have a history of satisfied customers
• Display the live spot price of gold on their website.

Beware of gold dealers offering extreme discounts or selling gold at a much cheaper price than anywhere else you see. This is likely to be a scam. The last thing you want is to take a chance on an extremely low gold price and have your money stolen. If prices seem suspiciously low, be sure to check for hidden fees that might increase your purchase&#;s overall cost. If it sounds too good to be true, it likely is.

Buy &#;Best Value&#; gold

Another way to buy gold cheaply is to look for &#;Best Value&#; gold on dealer websites. This refers to pre-owned, or pre-circulated, gold coins or bars that are usually sold at a lower price than if they were new. For example, a &#;Best Value&#; gold sovereign can be up to a percent cheaper than a more recent issue, despite having the same amount of gold content.

Avoid numismatic coins

Many people who want to invest in gold are drawn in by the world of collectible or numismatic coins. These are rare and historic coins, however they&#;re extremely difficult to value and sell. Fraud is rife in numismatics communities, and unless you know a lot about the subject, it&#;s easy to fall prey to an overpriced or counterfeit coin.

If you want to invest in gold coins, it&#;s best to buy gold bullion coins through approved precious metals dealers. Bullion coins have transparent pricing based on the spot price of gold, unlike collectible coins which are valued based on subjective and intangible factors. Popular gold bullion coins include the Gold Maple Leaf, Gold Krugerrand, and Gold Vienna Philharmonic.

Buy coins to avoid Capital Gains Tax (CGT)

Gold bars may be more affordable per ounce than gold coins, but gold coins have the added benefit of helping you avoid paying CGT and VAT, depending on where you live. This can make them the cheapest way to buy gold. In the UK, gold Sovereigns dated after , gold Britannia, and other gold bullion coins with a face value, such as the Tudor Beasts and Myths and Legends series, are exempt from CGT.

This isn&#;t just the case in the UK but in many other countries that issue legal tender gold bullion coins with a face value. To be sure, check the specific tax regulations in your country or consult with a tax professional.

Summary: What&#;s the cheapest way to buy gold?

When it comes to physical gold bullion, buying from an online precious metals dealer is the best way to get a good price for your gold investment.

At StoneX Bullion, we&#;re proud to offer competitive prices on our vast range of investment-grade gold bullion bars and coins. We buy straight from producers and avoid intermediaries so you can save money on your investment. As a Fortune 500 company and LBMA affiliate member, you can trust StoneX Bullion to be a reputable and trustworthy source for your gold investments. Browse our collection and start investing in gold today.

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