Precious metals can perform a key role in any portfolio. It adds an element of long-term security to your portfolio, a safe haven against turbulent economic prospects, and a tangible asset that eliminates counter-party risks and gives you direct control in a way few other assets can.
When you want to buy stocks or bonds, you talk to a financial advisor, your stock broker, your bank, or you go through a direct investing platform. But when you want to own physical gold bullion, your best bet is to go through a bullion dealer for a safe, secure way to invest in precious metals.
If you’ve never invested in bullion before, our team at Global Bullion Suppliers wants you to know what to look for in gold and silver bullion dealers.
Canadian Bullion Dealers with Transparent Prices
You should know exactly how much you have to pay before you walk into a bullion dealer. Luckily, it’s easier than ever to look up a dealer’s prices online and compare them to other dealers. With Global Bullion Suppliers, you can also see how buying larger quantities of gold coins will reduce the price you pay per ounce.
We also show you how much over spot you’re going to pay in premiums. The premium is where you’re going to find the biggest difference between dealers because it’s the amount they charge to cover their own costs, as well as the costs incurred by the mint or refiner in manufacturing and shipping coins and bars.
The spot price of bullion is determined on exchanges that handle massive volumes of precious metals. With futures markets, much of it never gets delivered, and so the cost of delivery never materializes. The premiums on real bullion cover those costs, and they can vary depending on a number of factors:
- Local supply and demand in the bullion market.
- National and global economic conditions that impact the availability of bullion.
- The volume being purchased.
- The type of product being sold, as some come with higher costs than others.
Free Consultations: Reliable Information About Bullion
Beginner investors face a steep learning curve before they can confidently enter the market. That’s one of the reasons we offer free consultations for investors new to bullion. These consultations will walk you through common bullion terms, the differences between products, how premiums work, and how buying and selling work. It’s a crash course in everything you need to know to make bullion work for you.
One of the basic rules of investing is becoming an informed investor. You don’t need to know the ins and outs of an industry before you buy stocks in it, but you should understand how an investment will make money, what fees and costs go into buying, holding, and selling it, the risks that go into making this investment, and how an investment fits your personal risk tolerance.
Bullion can fill a defensive role in your portfolio, but don’t be afraid to ask questions and learn everything you want to know about gold, silver, and the various bullion products that are available.
Find a Dealer Who Buys and Sells Bullion
Liquidity is an important factor no matter what you’re investing in, and local bullion dealers give you the assurance that you have liquidity. Liquidity refers to how hard it is to convert an asset into cash. Very liquid assets will have immediate buyers. For example, high-volume stocks are usually very liquid, as these stocks are usually purchased by market makers. Market makers provide liquidity by facilitating trades on major exchanges. They are always ready to buy or sell at a publicly-quoted price, effectively taking any waiting out of the market.
When it comes to bullion, your local bullion dealer fills that role. They are always ready to buy or sell gold and silver and offer prices based on the market. Global Bullion Suppliers posts our buying rates publicly, so you can quickly compare prices and get the best possible offer for your precious metals.
A reliable source for bullion is also a reliable buyer. You won’t have to worry about liquidity, and you can work with a partner you trust when you’re ready to cash in your investment for any reason.
Gold and Silver: Find the Right Metal for You
The two most popular forms of bullion are gold and silver. These two metals share a number of similarities as well as differences. Some bullion investors choose to buy a mix of both, while others focus on one or the other. There are three key distinctions between the two metals to consider.
#1 Silver Is More Affordable
There is a significant price difference between an ounce of gold and an ounce of silver. The ratio is always in flux, though the contemporary average is around 60:1. If you have a more limited budget to invest in bullion, silver may be your best option if you want to take advantage of discounted volume buying. However, if you’re investing more money, silver can quickly pose storage issues. This reflects the fact that gold is considerably scarcer than silver, and there is less of it in the world.
#2 Gold Remains a More Popular Hedge
A large portion of the silver market is industrial, making it vulnerable to recessions and patterns in general consumption. The investment market for gold remains larger than silver, and it’s the metal of choice for institutional investors.
While silver demand rises and falls with the rest of the economy, gold holds its position as a hedge against inflation, market volatility, and recessions.
#3 Silver Has More Volatility
Gold is a relatively stable asset, which is one of the attributes that makes it an appealing investment. Silver, on the other hand, tends to experience a higher degree of volatility. If you’re looking to avoid risk by investing in bullion, gold may be a better option than silver.
Understand the risks of buying gold and silver, as well as the benefits one metal provides over the other, before you choose which one to invest in.
A gold and silver bullion dealer can help you compare prices at different volumes and choose bullion products with the best possible prices. Once you’ve decided which metal you prefer or how you want to split your investments, get in touch with Global Bullion Suppliers to see which products we have available.
What Questions Should You Ask your Local Bullion Dealer?
As you narrow down your search, it helps to come prepared with a number of questions for a bullion dealer to help you decide whether they’re the right source for you.
#1 What Do Canadian Bullion Dealers Sell?
The bullion dealer you choose to work with should offer the products you want. Some bullion dealers may sell mostly rounds and bars from private refiners, which won’t fit an investor who wants the security of internationally-known coins from sovereign mints.
Availability can also be a concern. In 2021, the world faced a general gold coin shortage as sales skyrocketed in the face of investor anxiety. The U.S. Mint could not keep up with demand for gold and silver, and many bullion dealers had to adapt by buying products they may not have usually sold.
#2 How Do You Ship Bullion?
Discretion goes a long way when it comes to buying bullion. One of the appeals of buying gold is that you can store it in your home, with direct control over it. You don’t have to put your trust anywhere else.
It’s generally a good idea to keep home gold storage private. You don’t want to let too many people know about it. In fact, you may not want to tell anyone except a beneficiary, who should also have the password to your safe in case of an accident or emergency.
Because privacy is so important, you want a bullion dealer in Canada who will ship gold and silver products discreetly. Discreet packaging with no indication that the package includes bullion will help protect it from theft.
#3 Where Do Your Bullion Products Come From?
You should know where your bullion dealer gets its coins and bars. Have they ever been owned by anyone else? Were they made by a mint or a private refiner?
At Global Bullion Suppliers, we get our gold coins and bars from several sources. The first is mints and refiners, who work with distributors to get their products to individual investors. Many of our gold and silver coins come from the Royal Canadian Mint, but we also work with private refiners like PAMP Suisse and Valcambi.
We also buy bullion products from individual investors. We make it easy for investors to trade in their bullion products, so they don’t have to worry about finding a ready buyer when they’re prepared to trade in.
You will always be informed when bullion products have been pre-owned by an individual investor.
#4 What Do They Pay for Gold?
As a rule, bullion dealers offer the best prices for gold, as they can quickly and easily resell it to other buyers. They simplify the selling process and are essential for investors who want confidence in the liquidity of their assets.
Global Bullion Suppliers posts our prices for gold online and keeps our prices up-to-date as the market changes.
Work with the Right Bullion Dealer When You’re Ready
Prospective buyers are always trying to time the market, but the right time to buy gold is when you’re ready to include it in your portfolio for the first time or increase your holdings if you’re already an experienced gold buyer.
When you work with a reliable bullion dealer who wants to help you meet your investment goals, it’s easier to find the right products at the right price. Look for a bullion dealer who has the products you’re interested in, makes it easy to sell your gold and silver, provides free consultations for beginner investors, and is transparent about their prices. Global Bullion Suppliers is here to make bullion investing easy.