Are you thinking about trading precious metals online? You need to read the following 6 tips first. Education is the key to any online trading, especially precious metal bullions. The better educated you are, the better your decision-making process will be.
1) The market is risky, particularly with precious metals. You need to learn to expect that. How much money are you prepared or willing to spend? You will face a certain amount of risk at some point. The more money you decide to invest, the more risk you will inherit. You need to know the difference between taking a hit and holding on to what you have.fxtrade777
2) Investing in coins versus bars and rounds. That is a personal choice, really. Gold and silver eagles are popular and have become common in trading. Canadian Maple Leafs are also good choices, but again, it all comes down to personal choice.
Are you thinking about buying bars and rounds? You need to know the maker before you do anything else. Johnson Matthey, Perth, and Pamp are examples of all reputable makers. Stick with those three. Click here for the full list of reputable bar and rounds makers.
3) Finding a fair price will be more challenging. The best thing to do is shop around and compare. Ever hear the expression, Comparing apples and oranges”? You need to stick with apples and apples. One subtle difference will make the price spike high.trade gbp Are you seeing prices that seem “too good to be true”? You may want to be wary of them. Do not buy a named brand at the “spot price”. Why? The prices you see are normally 5-15% over the melt price. You may want to stick with buying in bulk because a smaller purchase will cost more.
4) You need to know the difference between a “spot” and a “melt” price. The spot price is the trading price of any given metal. The melt price is the value of the metal and its contents.
A silver spot is $17 per ten ounces. A .999 silver bar’s melting price is $170. A silver round that is half an ounce is worth $8.50.
5) You need to familiarize yourself with the term “fineness”. Fineness is the number of metals in the item. To get a full listing of examples of precious metals click here.
6) You need to know the right time to buy and sell. How will you be able to figure that out? In a word, shop. Dealers will have listings of everything they are selling, and even listing of items not open to the general public.
An Example To Help You Out
Steven spots a dealer’s buy price of gold at $1200. The selling price is $1285. The difference in the price is known as the “spread”, and in this case, it is $85. Steven wants to buy the gold, and since there is not much competition at the time, he will have better luck making a deal.
7) Is eBay a good place to buy precious metals? That is a good question, consider I do most of my shopping on eBay. The short answer is yes. eBay has protections set up that are not available any other place. However, that being said, you should not use that as a license to talk to just anyone. You need to do your research because even eBay has its fair share of bad apples.
thanks for the tips
well explained:) Investopedia is also a good source for such info
True, I am using Investopedia a lot to get a quick hint on financial terms and definitions