3 Steps to Take After Purchasing Bullion

3 Steps to Take After Purchasing Bullion

You've done your research on gold bullion products, found a reputable dealer and are ready to make your first purchase. Making your first gold investment is exciting, but it also leads to the question, what now? After purchasing gold bullion and bringing it home, what do you do with it?

If you're asking yourself these questions, you're not alone. Many first-time bullion investors wonder how to store, maintain, and protect their bullion once they buy it. You’ve spent ample time learning how to get into the bullion market and preparing questions for your bullion dealer, but now it’s time to learn what to do after purchasing bullion.

In this guide, we'll go over what to do after purchasing your gold bars, coins, and more, and what not to do to ensure your bullion is safe, kept in quality condition, and that you have a plan for selling or passing it on.

What to Do After Purchasing Bullion

Bullion is a sensible long-term investment that can protect your wealth and build it through unpredictable markets. It also offers investors peace of mind, knowing that their investments are in their own direct control.

However, physical assets face different risks than equities and other paper wealth. It’s imperative that you keep your silver and gold safe and protected, whether you’re concerned about the elements, theft, or losing it in a house fire or a natural disaster like a flood. Fortunately, physical gold bullion is a popular investment, and there are plenty of solutions for those concerned about the safety of their investments. Here are three steps you should be taking after purchasing your gold or silver bullion.

Secure Storage

Part of the reason investors look to invest in gold products is the security of owning a physical product rather than an intangible investment like stocks, bonds, and ETFs. But the security of owning gold bullion can quickly be negated if you don't have a secure way to store it.

There are several good options for hiding your gold and silver safely and securely. A home safe is a great option that cuts costs. Once the initial investment in the safe is made, there are no monthly or annual charges to worry about.

Safety deposit boxes are another alternative. You can get these at your bank branch, but it does mean keeping your gold one step removed from your immediate possession. This option also turns off many bullion investors because most banks are willing to disclose or turn over assets to the government.

Another thing to consider when looking at storage options is insurance. If your gold and silver investments are a significant portion of your net worth, you may decide you want to be protected no matter what. Your home insurance policy is unlikely to provide sufficient coverage. Look into policies specifically designed to cover gold and valuables for ultimate peace of mind.

You can also look into vaulting services for your gold and silver bullion. While Global Bullion Suppliers doesn't offer these services, our customer service team can provide recommendations for other vaulting services.

Estate Planning

Many people don't like to think about the topic, but estate planning is one of the essential parts of your financial plan. Neglecting it can be detrimental to your estate and significantly affect your beneficiaries.

Gold bullion is viewed as a reliable vehicle for preserving wealth. When purchasing it, a question to ask yourself is whether you are buying bullion to include as part of your estate or with the intent of selling it.

People often buy bullion to leave wealth for their heirs, as it is seen as a reliable long-term investment with a low correlation to stock prices. But as advantageous as leaving behind precious metals can be, it also presents a number of challenges in estate planning, which is another reason why it is vital that you plan ahead.

Hiding gold and silver in a safe isn't unheard of, but if your spouse or children don't know you have it or where it is located, they may never end up finding it. Documenting the value and location of the bullion you are passing down is incredibly beneficial to your executor and beneficiaries.

Bullion differs from other investment vehicles like stocks, bonds, ETFs and real estate. There's not necessarily a deed or other paperwork with your name on it. If the intended recipients aren't aware of your bullion or how much of it there is, it could fall into the wrong hands.

Careful, well-advised estate planning can ensure that bullion is a beneficial and valuable part of your estate rather than a complication.

Decide When to Sell

If you're planning to sell your silver or gold bullion, you're looking to get the best price possible. However, prices can fluctuate, so it's best to have a plan for this in place after purchasing your bullion to avoid having your decision-making process influenced by the excitement and emotion of seeing prices rise and fall. Your decision doesn't need to be written in stone, but having a plan in place can be a helpful reminder of your intentions.

If you're looking for tips for selling gold and silver, consider the return you're looking to gain and find a price point and market conditions that work for you. It's important to remember that gold prices fluctuate daily due to many different economic factors. Popular and best selling bullion products tend to have a stronger resale ability.

Even if you've purchased your bullion intending to include it as part of your estate, it's worth considering whether there is a particular price point that would make you want to sell. For example, the price of gold hit an all-time high in August 2020 for several reasons and caused many gold owners to seek places where they could sell their gold and make a profit.

Gold prices have been flirting with the all-time high several times since February 2022, so deciding on a desirable price point and when or if you would consider selling after purchasing is a great strategy.

A singular gold bar

What Not to Do

While we've been focusing on the steps you should be taking after purchasing your bullion, it's equally important to focus on what you should not do. Your bullion's quality, security, and value will be just as affected by what you don't do as it will be by what you do. Here are three things not to do after purchasing your bullion.

Don't Clean Your Bullion

Let's be crystal clear from the top: Do not, under any circumstances, clean your bullion. We highly recommend avoiding cleaning or polishing your bullion. Doing so can damage a mint finish. Those imperfections your bullion might have – tarnish, scratches, dents, or blemishes – are usually the result of the minting process or other factors and don't affect the value. Gold is a soft metal, so be cautious even when inspecting your bullion.

The value of bullion is generally based on the weight and purity of the item. The above factors only affect the value if the item is drastically damaged, scratched or flawed, or if the piece is considered low mintage or numismatic.

Don't Share Your Safe Combination

There are many effective safes out there for storing your bullion at home, but ultimately, to keep your belongings protected, you need the combination to be kept quiet. Avoid sharing your safe combination. The only people who should have the combination are authorized users of the safe. If you don't want someone removing contents, they shouldn't have the combination.

It may seem obvious, but just as oversharing your combination is unwise, oversharing is not recommended when it comes to how and where you're storing your bullion. Don't share where in your home you're hiding your bullion or your safe location, or even that you have gold at home. If your home is broken into, there are a few key places burglars tend to look for valuables and safes straight away.

There are a few critical pieces of advice to avoid your safe being found, broken into, or carried off with. Of course, you could buy a large, heavy, well-built safe that is too heavy to move, or that is bolted down, but those come at extremely high prices that many can't or won't want to pay.

Consider leaving your safe in these locations to avoid detection:

  • The pantry
  • Under the kitchen or bathroom sink
  • A cabinet in the laundry room
  • Safe containers designed to resemble other objects

You can also choose a safe designed for concealment, such as in-ground floor safes or wall safes.

Don't Sell to the Wrong Buyer

Whether you've chosen to invest in bullion to diversify your portfolio, hedge against inflation, preserve wealth for your family or for any other reason, you don't want to lose money. Your bullion purchase is an investment. You don't want to make the wrong move by selling to the wrong buyer.

Whether you choose to work with a dealer online or in person, look for a dealer that has earned a reputation for providing excellent customer service and fair prices. Dealers should be upfront about whether bullion is sourced from mints, refiners, or individual investors. When making online purchases, dealers should ship your bullion in discreet packaging to avoid attracting unwanted attention.

It's often recommended that you buy and sell gold and silver with the same bullion dealer. This allows you to establish a good working relationship. Reputable dealers want their customers to be happy and to return for more.

If you have questions about getting started investing in bullion, don't be afraid to visit a bullion consultant who can provide information on the basics of bullion investing. At Global Bullion Suppliers, we offer a free 30-minute bullion consultation with no obligations. In these consultations, we provide advice on investing in precious metals and are available to answer your questions. We'll cover all the basics, discuss common bullion terms, the process of buying and selling, the differences between bullion products, and more.

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