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A Guide To Investing In Precious Metal

A Guide To Investing In Precious Metal

Table of Contents

For a very long time, gold and silver have been regarded as the best methods of investing in precious metals and have been sought after. Precious metals investing still has a place in an intelligent investor’s portfolio today. But which precious metal is the best investment? And why are they erratic?

There are numerous ways of purchasing precious metals like gold, silver, and platinum, as well as numerous justifications for giving in to your need to go on a treasure hunt. To discover more about precious metals and how to invest in them if you’re just getting started, continue reading.

Before we dive into how to invest in precious metals let’s take a quick overview of the types of precious metals we can invest in. Below are some precious metals to consider for investment:


gold investing

The most popular and sought-after method of investing in precious metals is gold. Its resilience (it doesn’t rust), capacity for shape, and capacity to conduct heat and electricity make it unique. Although it has minor industrial applications in electronics and dentistry, its primary usage is in manufacturing jewelry and as a medium of exchange. It has traditionally served as a valuable repository. As a result, investors look to buy gold as a hedge against rising inflation during periods of economic or political turmoil.

Many factors cause the increased desire to stockpile gold:

  1. Systemic financial worries: Gold has historically been sought after as a safe store of value when banks and money are thought to be unstable and political stability is in doubt.
  2. Inflation: People frequently resort to gold as a haven asset when actual rates of return in the equities, bond, or real estate markets are negative.
  3. Political unrest: It has always led to gold hoarding on the part of the populace. You can make a lifetime’s worth of savings portable and store them until you need to exchange them for food, shelter, or a safe journey to a less dangerous location.


silver investing

The second most prevalent and sought-after method of investing in precious metals is silver. The electrical, electronic, and photographic industries employ this significant industrial metal. For instance, silver is a crucial component in solar panels due to its electrical characteristics. Jewelry, silverware, coins, and bars are all made of silver, which also serves as a store of value.

The price of silver tends to be more erratic than gold due to its dual use as an industrial metal and a store of value. Stock prices for silver can be significantly impacted by volatility. During significant industrial and investment demand, silver prices can occasionally outperform gold.

These fluctuations are always accompanied by new innovations, such as:

  1. The price of silver is more erratic than gold since it serves as both an industrial metal and a store of value. 
  2. The volatility may have a significant effect on the pricing of silver stocks. 
  3. When there is strong demand from investors and the industry, silver prices may occasionally outperform gold.


platinum investing

Platinum is traded constantly on international commodities, just like gold and silver. Because it is significantly rarer than gold, it frequently commands a more fantastic price (per troy ounce) during regular times of market and political stability. Much less metal is dug up from the earth each year.

Like silver, the primary usage of platinum is industrial. It is crucial to the auto industry since it is used to create catalytic converters, which aid in lowering exhaust emission levels. Platinum is also used in the oil and refining industries, as well as in the computer business. Also used to make jewelry is platinum. Due to its scarcity, the metal has some investment potential, albeit not as much silver or gold.

Factors determining the price of platinum are:

  1. Platinum is also considered an industrial metal due to its tremendous demand from automotive catalysts, which are used to reduce the harmfulness of emissions. After this, jewelry accounts for most of the demand, followed by petroleum and chemical refining catalysts, and the computer industry uses up the rest.
  2. Due to the car industry’s considerable reliance on metal, auto sales and production figures play a significant role in setting platinum prices. 
  3. South Africa and Russia are the only nations with a significant concentration of platinum mining. Due to this, there is a higher chance that cartel-like behavior will support or even artificially inflate platinum prices.


palladium investing

Another metal with important industrial use is palladium. It is utilized in jewelry, dentistry, medical uses, industrial items, electronics, and groundwater treatment. Investors don’t place as much importance on palladium as other precious metals, even though it is precious and uncommon for those uses.

Feature of Palladium:

  1. Palladium is slightly rarer.
  2. Palladium is harder.
  3. Palladium is less costly due to lesser demand.
  4. Palladium is popular in industrial usage./
  5. Uses of palladium are in Bullion, Industries, and Jewelry.

What To Look For When Investing In Precious Metals?

Being an educated consumer is an inoculation against scams and bad investments. To sharpen your discernment, you must know what to look for when you set out to make your purchase.


The first thing you need to look for when buying precious metals is a reputable dealer you can trust. Research the reputation of the company you’re looking to buy from. How long have they been in business? What do people say about them? Where are they located—can you visit them in person? 

If other people can vouch for how knowledgeable the company is and how they were able to deliver a smooth buying experience, you can feel more at ease doing business with them. A gold trading business that is candid and informative will assuage your apprehension about hidden fees and unexpected charges.

Physical Presence

Find a vendor with an office presence. Take advantage of the opportunity for precious metals investments in person. Sitting face-to-face with your dealer, seeing the products, and asking all the questions you have in a real-life conversation will ensure the best buying experience for you. The legitimacy of a physical office transmutes the uncertainty of the internet. 

Don’t Focus on the Wrong Things

Contrary to what some people believe, you don’t need to look for a company with a large selection. 

A large selection sounds like a treat because you feel like the business went out of its way to provide you with various choices. The reality is more logistical than emotional. 

In the gold trading business, 98% of buyers are interested in the same items. If a company has a large inventory, it will take them longer to move the items requested less frequently. This requires them to charge more across the board to make up for their dead inventory. Intentionally keeping an inventory of only the most popular items is a practical decision for a business. Most dealers will have variety in their inventory by buying coins or bullion from customers.

Keep It Simple

Investing in gold is something you want to have an ongoing business relationship with. A reliable dealer is an extension of the security you are afforded by protecting your wealth with physical assets. Bullion Trading LLC makes the purchasing process simple, exclusive, and discreet so you can continue to grow your portfolio and foster the kind of peace of mind that comes with financial security.

Pros And Cons Of Investing In Precious Metals

For investors, precious metals investments have a number of pros, such as:

  1. Protection from inflation Prices for precious metals typically increases at or above the inflation rate.
  2. Precious metals are tangible assets that are valuable for uses other than investing, such as jewelry or industrial applications.
  3. A somewhat liquid investment, it is: Precious metals, particularly investment goods, can be swiftly sold and converted into cash.
  4. Diversifies a portfolio by providing: Precious metals’ price changes can diverge from those of the stock and bond markets.

Some of the cons of precious metals are:

  1. There are expenses associated with storing and insuring real metals. 
  2. The possibility of theft is also present. 
  3. Furthermore, if you sell them for a profit, the IRS taxes them as collectibles. 
  4. Direct investments in precious metals have the additional drawback of not producing income.

Is purchasing precious metals a good investment for you?

Because they have intrinsic worth, don’t involve any credit risk, and can’t be inflated, precious metals provide a particular form of inflationary protection. Thus, you are unable to print any more of them. Additionally, they provide real “upheaval insurance” against monetary, political, or military upheavals.

From the perspective of investment theory, precious metals also offer a low or negative correlation to other asset classes, such as equities and bonds. This implies that when you buy precious metals, even a tiny proportion will lower volatility and risk in a portfolio.

Also, read Best Gold Coins To Invest In 2022 & Why Investing in Physical Gold and Silver.

Conclusion for Precious Metals Investing

There are many benefits of investing in precious metals because they constitute a distinct asset class from stocks and bonds, which are only partially connected and present certain risks and possibilities. Because of this, they are especially well suited for use in a portfolio diversification approach. The ideal strategy will depend on your objectives among the several ways to invest in gold and silver.

We urge you to look through Bullion Trading LLC’s range of gold, silver, and platinum or palladium bullion once you’ve thought about how you’d like to start investing in precious metals. There are certain to be products in our huge product inventory that will attract people with different interests. The options are unlimited when it comes to constructing your precious metals portfolio, whether you want to begin with sovereign coins that have been gathered globally or something a little more exotic.

Frequently Asked Questions(FAQs)

Is precious metal a good investment?

Precious metals investments have various advantages over stock investments, including being an inflation hedge, having intrinsic value, being free of credit risk, having a high level of liquidity, adding diversification to a portfolio, and convenience of purchase.

What precious metal is the best investment?

Gold, silver, platinum, and palladium are all very good precious metals to consider for investment.

Can you buy precious metals online?

Gold bars can be purchased from merchants, private sellers, or online retailers like Bullion Trading LLC. Additionally, keep in mind that you may be responsible for paying delivery fees as well as insurance to ensure the safe transportation of your bullion.

What is the best way to buy precious metals?

The most effective way to purchase actual precious metals is online from a gold dealer like Bullion Trading LLC. Unless there is an emergency, investors should refrain from taking physical custody of their gold or silver.


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Terms & Conditions

Trading in gold and other precious metals is risky because the market is volatile. Past performance is not indicative of future returns. This is why we encourage you to read Our Terms and Conditions carefully before making purchases, selling, or placing orders with BULLIONTRADING LLC. Refer to Safety Tips from the CFTC (Commodity Future Trading Commission). These terms and conditions apply to all orders, all purchases, and all sales made through our website, telephone, or other channels.

In the event you do not fully understand the terms of this agreement, BULLIONTRADING LLC strongly encourages you to consult with your own experts. BULLION TRADING enters into transactions with customers on the reliance and belief that clients are aware of, understand, and agree to these terms.

These terms and conditions are effective as of March 11, 2022, and are binding to all new and existing customers and users.


The prices for gold, silver, platinum and palladium coins and bars keep on fluctuating because of the risk factors that cause price volatility. The risk factors include political development, war, pandemics, demand, and supply. It is important to keep this in mind when transacting with BULLIONTRADING LLC.

The Ordering Process

BULLIONTRADING LLC. Does Not speculate on the prices of precious metals. This means that we don’t make profits by buying gold when the prices are low and selling when prices go up. BULLIONTRADING LLC generates revenue through premium spreads. This is the difference between what Bullion Trading LLC pays & sells these items for.

Orders and inquiries can be made through our website, phone, or other suitable channels. Contact Us for information.


Inquiries are made by customers who are not ready to transact immediately. Customers can contact us or go online at to get current market prices. The price quote and quantity available are subject to change. They can also contact us for guidance on buying and selling bullion coins and bars. You should note that the Price Quotations you receive when inquiring are Estimates because the prices of bullion coins and bars fluctuate daily, and the number of our stock changes all the time.

For example, The U.S Mint sets premium and minimum prices for American Eagles. Prices for American Eagles are determined by the current price of gold, silver, platinum, or palladium. The mint also charges a modest premium to cater to the cost of distribution and marketing. Consequently, the price of bullion coins and bars changes daily as the markets for gold, silver, platinum, and palladium fluctuates. Refer to the United States Mint’s Charges for Authorized Dealers.


Orders are made when customers are ready to transact immediately. The prices you get when ordering bullion coins and bars from us are an accurate reflection of the current market prices. Note that once you place an order, the prices are locked and are no longer subject to market conditions.

An order is placed when you finalized negotiations with our agents and an invoice is generated, not when the payment is made. Ordering and then bailing out or canceling after an invoice is generated makes BULLIONTRADING LLC incur losses. We incur losses because when you place an order, we consider the bullion coin or bar sold and will have hedged ourselves accordingly.

Disclaimer: To protect our company from losses, BULLIONTRADING LLC has implemented a Market Loss Policy.

Market Loss Policy Explained

An order starts when you finalize the deal with our agents, not when the payment is made. We generate an invoice immediately the deal is sealed either through our website or phone. We also count the bullion coin or bar as sold and will have hedged ourselves accordingly.

Customers who place orders, have invoices generated, and then cancel thereafter make us incur losses. To protect ourselves we have implemented a market loss policy. This means that you will incur penalties for ordering, having an invoice generated, and then bailing out. Once an order is placed, prices are locked and not subject to market conditions.

The moment you place an order an invoice is generated. If you cancel, and then gold prices decline you make us incur a loss. It is your responsibility to offset this loss if your order is canceled and your funds are returned. If this happens you will pay for the loss caused by a decline in the price of gold after a sale is made plus a cancellation fee of $35.00. This is our market loss policy.

To remain transparent and protect ourselves from risk we might require credit card information from every customer even if payment will be received through a different channel. We also will ask for immediate confirmation of the amount locked in. This gives us an avenue to compensate ourselves for losses in the event a customer places an order and then fails to pay.

However, if the price of bullion coins and bars stays the same, we usually don’t enforce our market loss policy because we don’t incur losses. If the price goes down we charge a market loss fee which is equal to the amount BULLIONTRADING LLC would have lost because of the unpaid order.


Bullion Trading LLC only accepts payments in the form of bank transfers, certified checks or personal checks. The method you use to pay us is determined by the number of bullion coins and bars you are willing to buy from us as follows:

  • Orders ranging from $1,000 to $5,500 should be paid via any option listed above and must be received within 2 business days from the time the order was made.
  • Orders ranging from $5,500.01 to $10,000 should be paid by bank wire, certified check, cashier’s check, money orders, or personal check, and must be received within 2 business days from the time the order was made.
  • Orders ranging from $10,000.01 to $25,000 should be paid by bank wire, certified check, and must be received within 2 business days from the time the order was placed.
  • Over $25,000.01 should be paid by bank wire and must be received within 1 business day from the time the order was placed.

If Using A Credit Card You Are Agreeing To The Following Terms:

  • I understand and agree that should I dispute the credit card charge through my credit card provider, I will have breached the contract as well as committed a credit card fraud.
  • I waive any charge-back rights. In the event of a dispute, and I request for a refund it must be made through the Bullion Trading LLC Arbitration Procedure described herein under Bullion Trading LLC.
  • Dispute resolution: I understand that all sales are final. There are NO EXCHANGES or REFUNDS.
  • I cannot receive a refund from Bullion Trading LLC, nor can I request the funds from my credit card company.
  • I also agree to waive any charge-back rights in the event of a dispute.


You agree that you have sufficient experience and knowledge to make informed decisions to purchase from and/or sell to BULLION TRADING LLC. You openly acknowledge that you are making all of your decisions in connection with purchases and/or sales. BULLION TRADING LLC is not making any decision on your behalf concerning purchases and sales.

You also openly acknowledge that you are subject to a variety of risks that are beyond the control of BULLION TRADING LLC. You openly acknowledge that BULLION TRADING LLC is not liable or responsible for the risks you incur while trading with us. Those risks include, without limitation, risks associated with the price volatility of bullion coins and bars. Market conditions or other disruptions such as technical problems may make it impossible for you to liquidate bullion coins and bars bought from us. You have the freedom to liquid the coins and bars at market prices acceptable to you.


All investments involve risk – bullion coins and bars are no exception. The value of bullion coins (e.g., American Eagles or Maple Leafs) is affected by many economic factors. The current market price of bullion coins and bars is determined by perceived scarcity and other factors. Some of these factors include quality, current demand, and general market sentiment.

The price of bullion coins and bars keeps on fluctuating and this means that they are not a suitable investment for everyone. Since all investments, including bullion coins and bars, can decline in value, you should make an informed decision. It is a good idea to have adequate cash reserves and disposable income before investing in bullion coins and bars.


You shall indemnify and absolve BULLION TRADING LLC and its affiliates, directors, officers, and shareholders collectively. You agree to compensate the indemnified parties for and against any costs, damages, expenses, liabilities, and obligations. They include without limitation to reasonable attorney fees that the Indemnified Parties may incur as a result of, or in connection with:

(a) Any breach of any representation or warranty made by you to BULLION TRADING LLC or,

(b) Failure to comply with these terms and conditions or the policies adopted by BULLION TRADING LLC.


You acknowledge that you are subject to the limitations of liability contained in these terms and conditions, the disclaimer, and other policies adopted by BULLION TRADING LLC.

If you suffer indirect, punitive, or speculative damages BULLION TRADING LLC is not liable to you. Any transaction between us and you pursuant to these terms and conditions, and any liability of BULLION TRADING LLC to you shall be limited to:

(a) The amount, if any, that you paid in such transaction or,

(b) $100 compensation. We are not, in any event, liable for any indirect, punitive, or speculative damages.


BULLION TRADING LLC has adopted a Privacy Policy that is included in these terms and conditions. Our privacy policy protects your identity and credit card information.

BULLION TRADING LLC privacy policies are found in the Disclaimer, Ordering Policy, and the protection of credit card information. These terms and conditions may be updated from time to time depending on the market forces and the legal landscape.


Upon any failure by you to comply with your obligations to BULLION TRADING LLC, the company shall pursue the rights and the remedies available to us. Either by law, through equity, or otherwise. It includes without limitation rights and remedies under these terms and conditions.

Breaching our rights may make BULLION TRADING LLC turn your account over to a collection agency, or a lawyer for collection. BULLION TRADING LLC will not fail in exercising any rights or pursuing any remedies in the case we suffer losses or damages.

Note: Failure by you to comply with these terms and conditions, may make BULLION TRADING LLC charge the credit card on which you have provided. This includes without limitation any and all market losses incurred by BULLION TRADING LLC, including cancellation fees, for ordering and then canceling at the last minute. You openly authorize BULLION TRADING LLC to charge your credit card for all losses caused by you violating our ordering policy.


BULLION TRADING LLC is an authorized dealer and a professional organization. We maintain a professional relationship with all our clients. We don’t enter into relationships such as agent-principal relationships, employee-employer relationships, franchisee-franchisor relationships, joint venture relationships, and partnership relationships with our clients.


You cannot forfeit these terms and conditions, your rights, or your obligations as they apply without the prior written consent from BULLION TRADING LLC. You may be granted permission to forfeit your rights or it may be withheld by BULLION TRADING LLC at its sole discretion. These terms and conditions shall be binding to all parties that trade with BULLION TRADING LLC.


If you violate these terms and conditions BULLION TRADING LLC will take action against you. It may include without limitation, turning your account over to a collection agency, or a lawyer for collection. You shall pay all of the costs and the expenses incurred by BULLION TRADING LLC, including without limitation to reasonable attorney’s fees.


BULLION TRADING LLC maintains professional relationships with clients. This is why we make sure that any grievances are resolved expeditiously. We agree that all disagreements and disputes with our clients should be resolved in accordance with the provisions below.

Because we value the relationship with our clients, we opt for arbitration or mediation as a channel for dispute resolution instead of going straight to state/federal courts. However, if arbitration or mediation fails, we may be forced to take legal action in state/federal courts in the State of New York.


These terms and conditions are governed by and interpreted in accordance with the laws of the State of New York. These terms and conditions do not take into consideration the possible violation of laws in other jurisdictions.




If BULLION TRADING LLC cannot perform any obligation hereunder as a result of any event that is beyond its control, the company shall be excused and shall not be liable for any damages as a result of, or in connection with, such delays, or such failures.


You shall sign and avail other documents, or take actions that assist BULLION TRADING LLC in enforcing the provisions of these terms and conditions.


Except as provided in these terms and conditions, all notices, and other communications to BULLION TRADING LLC shall be directed to it at 20 West 47th Street Lower Level #24, New York, NY 10036. All notices and other communications to you shall be sent by BULLION TRADING LLC, to the address that you provided to us at the time of your registration, or to the email address that you provided to us at the time of your registration.


BULLION TRADING LLC may record phone conversations between you and company agents or representatives. You consent to the recording of such phone conversations.


A decision or a failure by BULLION TRADING LLC to take action with respect to any non-compliance with these terms and conditions does not affect the ability of the company to enforce the terms and conditions with respect to other violations. Whether the violations are similar or dissimilar in nature.