Are you worried about the instability and volatility of the markets? Are your investments safe?
Remember the meltdown of 2008 when the market drained the value from your retirement accounts in a matter of months. So, you want to take action: To safeguard your money, you’ve looked into diversifying your portfolio. You’ve done your research in protecting a portion of your wealth with the security of precious metals. Now that you’ve decided what action to take, you have some questions about the pricing.
When you buy and sell gold, silver, or other precious metals the value of the element is based on what is called the “spot” price. The term comes from traders on commodity exchanges settling on a price right there on the spot, the current price which a particular security can be bought or sold at a specified time and place. A security’s spot price is regarded as the explicit value of the security at any given time in the marketplace. This is opposed to the “ask” and “bid” prices: the “ask” price is related to the coin or bar’s selling price and “bid” price has to do with a commodity’s buyback price.
Keep in mind that the actual price that you will pay will always be a little above the actual spot price. The reason for this should be obvious: this is how dealers do business. To meet their overhead costs – website expenses, office rent, employee wages, insurance, etc. – dealers must charge customers a small premium over spot to cover costs and stay in business.
Whomever you choose to do business with, there will always be a small spread between buy and sell prices. You can compare this to the commissions that stock brokers charge when buying or selling stocks on your behalf.
Be mindful of what you are getting for your money: RC Bullion will pay all transit and insurance costs related to the shipping process on all orders over $5,000. Also for every $25,000 invested in an IRA, RC Bullion will pay all storage and custodial fees for one year, for up to a maximum of three years.
No matter where or with whom you choose to do business buying or selling your precious metals, you will never be able to get the spot price. But there are steps you can take to ensure your buy-sell spread is as low as possible:
• When selling your gold and silver make sure your precious metal is in top condition. If your metal becomes tarnished or otherwise dirty it will typically sell for less than items in pristine condition. This is regardless of the fact that whether clean or dirty, both contain the same amount of metal.
• Dealing in volume will get you the best price. Like many things, the more metal you are buying, the better the price you will get.
Before you decide to trade in precious metals, keep in mind that most experts consider precious metals a long term investment. Gold, for instance, should be held for a minimum of 3-5 years, even better 5-10 years. Though, there may be certain circumstances that may make a longer or shorter holding period more appropriate.
At RC Bullion, we are company that not only understands the buying and selling of precious metals but also IRA transfers and rollover of 401(k) retirement plans. We are also experts on the various IRS rules to make sure you’re getting all of the benefits a gold IRA offers.
To help our prospective clients make the most informed decisions and get the most for their money, we created a new mini-course. The course is entitled “The Secret to Successful Gold Investing” and it’s now available as a FREE download.
In this course you will find information that will help you avoid making rookie mistakes and could help save you thousands of dollars in your investing. For more information visit us online for at www.RCBullion.com
With market prices at current levels, there may be no better time to invest in gold than now.
