Investing isn’t just for the wolves of Wall Street, far from it, it’s an opportunity for anyone to make some extra money each month. You could be a stay-at-home mum, one of the children of a stay-at-home mum or a retiree; as long as you have a few spare pounds at the end of the month, you can make a start.
It’s never too late or too early to start, but the best time is always the present, as it’s the only time you have. Once you start, however, you should follow these tips to avoid the common mistakes that many newbie investors make.
Not paying attention to price fluctuations
Every commodity has its price cycles, so you should watch them before diving in. It’s tempting to buy at the top of a cycle because you’re impressed with the price and can’t see it ever falling. However, fall it will, because that’s the way it goes. So, you wait for the fall and buy then; it will rise at some point.
Not shopping around enough
If you’re new to a particular commodity market, or to investing full-stop, then you won’t have the perspective and experience to know good, bad and indifferent prices when you see them. Some sellers have exaggerated prices or have hidden extra fees, so shop around and look at the spot prices offered by several sellers before parting with your money. Sellers like Golden Eagle Coins offer reliable and reasonable prices and even have sales on bullion occasionally. What you’re looking for is the seller that puts the smallest percentage above the spot price.
Buying scrap gold or silver
Scrap metals, even precious ones, like rings, necklaces and so on are hard to sell because you can’t be sure if they’re pure (if they’re to be melted down) or they’re probably damaged or of low quality if you’re aiming to re-sell them.
Going to untrustworthy sellers
If you buy your metals from unreliable sellers then you’re at risk of buying fake or adulterated products, or replica coins. You need to buy your stock from either banks or verified sellers who specialise in bullion. Stay away from online auction sites.
Not diversifying enough
You need to have a variety of metals – gold, silver, platinum, rhodium and others – as well as have these metals in different sizes. You diversify so that you’ll always be able to take advantage of the swings and roundabouts nature of metal prices and so that you have different options for selling. If you only have large bars, then you might not be able to sell them as easily as smaller ones. Take your time, though, and start with gold and silver, before buying in different metals and sizes when you can.
Not looking at the purity of the bullion
It’s better to buy a smaller weight of 99% or even 99.99% pure metal than a bigger amount of a metal with only 90% purity. If you buy less-pure metals, you’ll have a harder time selling it on in the future and you’ll probably find that the purer metals aren’t prohibitively more expensive.