Building a Precious Metal Portfolio That's Right for You

Building a Precious Metal Portfolio That's Right for You RENDEN by Independent Living Bullion BULLIO Primary Rule The first rule we have often addressed is to avoid collectible or numismatic coins and the exceptionally high premiums that dealers charge for them. Numismatic coins are rare or collectible coins that are usually sold at a much higher premium thạn bullion coins, bars and rounds. Popular numismatic coins include the Morgan Silver Dollar and the pre-1933 Double Eagle gold coin. Should You Buy Gold, Silver, Platinum, or Palladium? Comparison 24 The gold/silver ratio is currently around 50: Platinum and palladium have seen major price corrections. which is to say one ounce of gold is priced at about 50 times the price of an ounce of silver They too present an opportunity for investors who want to be more aggressive. Buy gold if your priorities are wealth preservation and safety with lower volatility and risk – or if your investment time horizon is under 3 years. Buy silver if you want a combination of wealth preservation and greater potential appreciation. Buy some platinum or palladium if you want to diversify your precious metals holdings into alternative metals with their own unique fundamentals. Determine the Purpose of Your Bullion Investment Investors focused on holding for the long term should give priority to finding the lowest premium. Long-Term Appreciation In a bull market for precious metals, it is the ounces you own that will produce the investment Diversifying Their Cash The lower the premium the more ounces you will acquire. Always remember to consider the marketability of what you buy - you will most likely want to sell at some point. Holding inside an IRA Most investors should avoid 1,000-ounce silver bars, for example. These large bars carry low premiums, but they could be discounted when it is fime to re- sell. Barter and Trade Potential Speculation (Including Trading the Gold /Silver Ratio, Etc.) Investors with a self-directed precious metals IRA should focus on low premiums. as thev Fractional-sized gold (American Eagles and rounds) and silver ("jŭnk" silver and rounds) will give you more flexibility in barter situations. Don't Lose Your Position in Precious Metals by Trading In and Out In regards to short-term trading, we caution people to avoid trading in and out of their core holding of physical metal. We are in a bull market for metals, and we are living in uncertain times. World events can move markets suddenly and without warning, so you absolutely cannot risk giving up your core position in this environment. Currently at levels above 50, we think this ratio favors over-weighting silver. Should silver prices move violently upward in relation to gold, it may then make sense to swap silver for gold. Savvy metals investors have used this technique to reap even greater returns- without ever abandoning safety or gambling their position in this bull market for precious metals. Keep Transaction Costs Low Two Major COmponents THE BUY-SELL SPREAD (also known as the bid-ask spread or the THE SHIPPING EXPENSE In many jurisdictions there is a third component in your transaction costs that must be considered – sales tax. However, Independent Living Bullion is not required to collect any sales tax whatsoever – even if a precious metals dealer in your own state is. What Do You Like? TATES As a general rule, the buy-sell spread is low and does not vary a great deal from one bullion form to another. However, you will pay a little more to buy American Eagle coins versus other forms of gold or silver bullion. You can expect to get a little more for them when it is time to sell back, but the premiums on them are unlikely to rise as much as the metal itself. WE GOLO! DOLLARS Some appreciate that American Eagles are beautiful and well recognized, and they are happy to pay a bit higher premium to buy them. OF AME O STA Below is a chart outlining some of the pros and cons of the most popular bullion forms to help you zero in on which forms will best suit your needs, preferences, and budget. Gold Pros Cons Most widely traded bullion coin, government guarantee of purity and legal tender American Eagle (1 Higher premium oz) Slightly less durable, less popular design than Eagles Maple Leaf (1 oz) .9999 purity, lower premium SOUTH FRIKA Lower premium, long history trading world-wide Krugerrand (1 oz) Ineligible for IRAS ERRAND Fractional Affordable for those with limited American Eagles or budgets, handy for batering and Rounds Higher premium than 1 oz size gifting Limited aesthetic Bars Low premium value Prudent investors who know they should take prompt action to build a position in physical precious metals sometimes delay doing so simply because they are unsure about what to buy. We launched Independent Living Bullion to help new investors get their questions answered and get started. We hope this article will help, but customers often tell us the best thing they did to get started was pick up the phone, call 1-800-800-1865, and talk to one of our Precious Metals Specialists. They are happy to answer any questions and will never pressure you to buy. PERDENT LI INDEPENDENT LIVING BULLION Discreet. Cost-Effective. Beginner-Friendly. Secure. aretween the prpa) sell your metal back) %24 ANERICA