Bullion Basics–The What, Why, How to and When of Bullion

What is “Bullion”?What are Precious Metals? What are Numismatic items?Why invest in Precious Metals?How can I invest in Precious Metals? Questions to ask before investing in Precious Metals What type of Precious Metal should I invest in? And how much should I invest in Precious metals? When should I buy or sell Precious Metals?

What is “Bullion”?Bullion is a precious metal in the form of bars and coins. A metal must be deemed rare in order to be considered a precious metal. What are Precious Metals?Precious metals are rare metallic elements of high economic value. The most commonly known precious metals are Gold, Silver, Platinum, and Palladium.

What are Numismatic items?Numismatic items are items that are a part of the study of currency in its many forms of coins and paper money and their history. For the purposes for use at Bullion Post, any items that do not fall into the bullion category are placed in the numismatic category. Examples would be rare coins and rare paper money.Why invest in Precious Metals?

How can I invest in Precious Metals?DealersMintsCurrencyOnline auctionsQuestions to ask before investing in Precious MetalsThese are excellent questions and to find the most appropriate answer for each individual investor, you need to consider the following:

What type of Precious Metal should I invest in? And how much should I invest in Precious metals?

If you are new to investing in precious metals and do not have a trusted advisor, let’s start with some generalities:

When should I buy or sell Precious Metals?If you are looking to invest what you determine to be a substantial dollar amount, you will want to do some research on the current trend of the market to determine if you are buying at an opportune time or not. Charts and trend lines can be useful tools in this. If you are looking to invest in smaller amounts and in a more systematic manner, you should still do your research, but not be too concerned about “market timing”. With this type of investing you are trying to “dollar cost average” your investments. You will undoubtedly buy some at a higher price and some at lower prices, giving you an overall average cost per ounce. Many investors try to buy on days that the metals are down substantially and sell when they are rising. This is called buying weakness and selling strength. Others will wait until the market turns up on the first day of higher highs and higher lows to buy and lower lows and lower highs to sell. Having a consistent strategy and plan can help in getting better prices for buying and selling.

Steve Ebert is the Editor and Partner of www.bullionpost.com. Bullion Post is an online network for buying and selling precious metals and collectible coins in both online auction and fixed price formats. Contribute your own ideas on precious metals at our Bullionpost Forum. List your precious metals and collectible coins as our site has low transaction fees.
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