In the recent times, gold has been rated higher than bank savings, stock, bond and real estate. This has made a lot of people to gain interest in the trading of bullion and coins that are made from precious metal. Proper research and extensive knowledge should, therefore, be searched so that you can know all about this. It is advisable to advise the investors on the factors that they need to evaluate when buying gold and silver instead of telling them to get a certain coin. The factors that they need to evaluate are discussed below.
The first aspect of importance is the purity of the bullion and coins that you buy. The purity of the gold or silver is important when determining its value. The purity is analyzed by different methods with there being the use of a traditional method that is called the fire assay and a recent technic that is known as spectroscopy. The recommended purity that you should go for should be 90 percent and above. The highest purity of gold that was registered was in the South African Krugerrands.
The other aspect that you need to evaluate is the dealer who you get to help you in buying of the bullion and coins. A lot of dealers exist and it is, therefore, necessary to get the best. When you want to have the best, you need to make sure that you get the one who is certified and recognized by the local government. The company that you get for this purpose should also have the qualified and experienced personnel. They need to have been in operation for long so that they can have experience and guide you in acquiring the best of these precious metals.
You also need to consider is whether the gold is sovereign or private. These are terms that are used to describe the minter or maker of the gold coins or bullions. Sovereign minted gold coins are those that are made by the government while the privately minted gold coins are made by private bodies or companies. Those that are sovereign minted have a high value compared to those that are privately minted. There are also some private companies that are thought to make gold coins that are also valuable.
The other aspect that you need to consider is whether the gold coin is numismatic or bullion. Numismatic have an additional value of the fact that they are rare coins. If you want to have a rare coin, then you go for the numismatic but if you want one to trade with, the bullion is the best.