Long-Term or Short-Term Investing? What to Know before You Start to Buy and Sell Silver and Gold in Sydney
When it comes to investing in precious metals, one of the first (and most important) questions you need to ask yourself is whether you are shooting for a long-term or short-term investment cycle. Before you buy silver in Sydney or start purchasing gold bars in Melbourne, you need to take a minute to reflect on your personal finance goals.
Obviously, thinking about your investment timeline is important no matter what you are using as an investment. From stocks to real estate and beyond, it’s always important to think about whether you are in it for the long haul or aiming to make a quick profit. With gold and silver, though, these questions are especially important because they can point you in the direction of the type of bullion you want to buy.
Thinking about Your Investment Timeline
As with any investment, one of the goals when you buy gold or silver in Sydney is probably going to be buying low and selling high. You want to purchase your bullion when prices are low and sell when they increase. The thing with precious metals, though, is that buying low and selling high matters a little bit less when you are playing the long game.
One of the best things about owning gold and silver is that it holds its value over time and is inflation-proof. In 10 years, $1,000 in currency will have diminished in purchasing power because of inflation, but the value of gold or silver will have kept pace with inflation. As a result, your precious metals—or the money that you can get by selling them—will retain their purchasing power in a way that paper currency can’t. If you buy $1,000 worth of gold today and then sell that gold in Sydney 10 years from now, you are going to get more than $1,000 for it.
Thus, most long-term investors are less concerned about buying when prices are low than they are about buying in bulk. These investors want to buy as much gold or silver as they can afford to buy right now. They know that the more precious metals they buy now, the better protected their purchasing power will be down the road. As a result, long-term investors typically prefer to buy gold or silver bars. These are easier to buy in bulk, easier to store and easier to keep track of over time than coins or nuggets.
Bars also typically have the lowest premium over spot prices of any precious metals. In other words, if you were to buy a gold bar and a collection of gold coins that were both worth $5,000, you would pay more markups, fees and extra charges on the coins. Since buying bars means buying in bulk, the cost of doing business is lower.
With that said, if your goal is to buy silver this month and sell silver in Sydney next month, you might be more concerned about liquidity than anything else. Gold and silver coins are more liquid than other types of precious metal bullion, which typically makes them better for shorter-term or smaller-scale investors.
Call AGD Precious Metals to Sell Your Gold in Sydney
Whether you are looking for more tips about short-term vs. long-term precious metal investing or just trying to sell gold or silver in Sydney, AGD Precious Metals can help. We buy gold and silver, sell gold and silver and help clients like you start their precious metal investment portfolios. Call us today on (03) 9650 1758 to learn more.