Investing In Bullion


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Investing In Bullion

  1. 1. Investing In Bullion What is bullion? Why invest in bullion? How do you purchase bullion? Buying bullion online vs. going to a retail outlet? Who is Investing In Bullion?
  2. 2. What is bullion?Bullion refers to any precious metal in a form in which itsprimary value comes from the worth of the metal, not froman artificial currency value. Bullion is most often traded inthe form of coins minted by national governments, or inbulk ingots.While government issued coins have a nominal valueassigned to them upon minting, this value is virtually alwaysovershadowed by the commodity value of the metal itself.As an example, most government issued gold coins have acurrency value of between US$10 and US$100, but usuallycontain at least one troy ounce of gold. Given that theexchange rate of gold consistently rises, and from thebeginning of the twenty-first century on was worth at leastUS$350 a troy ounce, one can see that the government-assigned currency value of a bullion coin is essentiallymeaningless.The value of bullion is affected by three factors: metal, weight and purity. The metal the bullion consists of is obviouslyimportant in determining its overall value (i.e., gold is worth more than silver, while historically, platinum is worth morethan gold). The weight of bullion is usually measured in troy ounces, where one troy ounce is equal to approximately 31grams. Purity also varies widely in bullion, though many countries release coins with 99.99% purity, which is as closeas one can practically get to pure.
  3. 3. Why invest in bullion?Bullion is the basic commodity traded in the precious metalsmarket. Generally, by adding precious metals to a portfolio ofstocks, bonds and/or mutual funds, an investor is introducinga tangible holding to the asset mix. This increases the degreeof diversification and protects the portfolio againstfluctuations in value of any one asset type.Economic ForcesThe economic forces that affect the price of precious metalsare different from, and often are opposed to, the forces whichdetermine the price of most common financial assets. Thisindependent movement of precious metals to other financialassets can reduce overall portfolio volatility and contribute tobalance.The Declining DollarThe purchasing power of the U.S. dollar has steadily declined over time and experts expect that it will continue to doso. Precious metals can often provide a “hedge against inflation” capability. For example, between 1971 and 1981,the U.S. dollar lost more than half its value, while silver prices rose nearly five times. Economies fluctuate betweeninflation, recession and expansion. Investments in precious metals help diversify and lower overall risk.
  4. 4. Why invest in bullion?Continued…Asset AllocationWhether you are conservative or aggressive in yourinvestment approach, precious metals can represent animportant part of your asset allocation. Some expertssuggest that 10-15% of portfolio assets be in preciousmetals. No matter what level of risk an investor wishes totake, every portfolio needs a secure foundation.Ease of OwnershipFor investors who wish to take possession or direct control oftheir assets, buying physical bullion has appeal. Owningbullion is easy and convenient, and commissions on buyingand selling it are minimal.Industrial DemandSilver, more than other precious metals, has significant demand rooted in sectors as diverse as imaging,electronics, jewelry, coinage, superconductivity and water purification. For this reason, silver is no longer knownas just a precious metal, a store of value, a work of art or an industrial metal. It is all of these. Today silver isindispensable, working all around us to improve the quality of our lives.
  5. 5. How do you purchasebullion?Bullion products can be purchased through banks, coin dealers,foreign currency exchange offices, and brokerage housesworldwide. Choosing your best purchasing avenue is a personaldecision. Here are some points to consider prior to buying bullion: Are you dealing with a vendor that understands the bullion market? Have you remembered the importance of looking at more than one vendor to get competitive quotes? What policies are in place to ensure your satisfaction for buying the bullion items (eg., a money-back guarantee)?Prices of gold and silver bullion products are based oninternational market rates which vary daily, as well as supply anddemand. Be prepared for a reasonable premium to be chargedover the daily spot quotations to cover manufacturing,transportation and distribution costs.Universally recognized for quality and puritySilver and Gold bullion products from Government Mints are universally recognized for their quality and purity. Themint refines and produces bullion coins, gold kilo bars, trade bars and gold wafers - all struck with their weight andpurity. Bullion coins are also recognized as legal tender in their respective country of origin.
  6. 6. Buying bullion online vs. going to aretail outlet?The best way to buy silver and gold bullion will depend on whatyou are planning to buy, how much money you have to spend, andwhat will be most convenient for you. Purchasing bullion online isone of the best avenues to buy your gold and silver. The prices atonline bullion sites are typically significantly better than that oftheir counterparts. The only drawback to buying your bullion onlinevs. at retail outlet stores is that you cannot actually see, feel, andhold the items before you buy them.For silver and gold bullion buyers, ordering over the internetmakes perfect sense. You do not need to worry about thecondition of the gold and/or silver because bullion is bullion! Inother words, the value of the bullion item does not diminish as aresult of the condition. The only time that condition isexceptionally important is if you are shopping for a highlycollectible item. Even in this case, however, any crediblesilver/gold dealer will specify the exact condition of any itembefore they sell it.When buying your bullion online, though, please make sure that you are buying from a credible company. For informationon which online site to buy from, continue to the next slide.
  7. 7. Who is “Investing In Bullion” ?Investing In Bullion is a Toronto based eBusiness thatspecializes in selling bullion and collector coins. We aretargeting individual investors and collectors who would like totake advantage of the significant opportunity in preciousmetals. You, as a consumer, do not need large sums of moneyto reap the rewards associated with investing in this nichemarket. Most online precious metals dealers have minimumpurchase order requirements (i.e., anywhere between$250.00 - $2,500.00). Investing In Bullion does not havesuch a policy. Our customers enjoy the liberty of purchasingonly one coin, if they so choose. We understand the value ofinvesting in precious metals and are fully committed tohelping consumers with their bullion and coin collectingneeds.Investing In Bullion aspires to be among the top qualityprecious metals dealers in Canada. In order for us to achievethis ambitious goal, we focus on 100% customer satisfaction.If our customers are not completely satisfied, our goal has not been achieved. Yes, we have sold our product, butthats not good enough for us. Our objective is to generate a life-long relationship with our patrons. When we see thatour customers are returning to us for their precious metals needs, only then can we say that our business issuccessful.
  8. 8. Who is “Investing In Bullion” ?Continued…Of paramount importance to Investing In Bullion is the value ofintegrity. We believe that all consumers should be very wellinformed about any product they purchase. In our case, we arealways open to sharing information about all of our products(i.e., condition, purity, weight, dimensions, manufacturers,country of origin, etc...), should our customers desire thatdetailed knowledge. We assure the quality of our products byonly selling items that are made by official government mints.All of our bullion items (and collector items) are legal tenderand are guaranteed for their purity and weight from therespective government mint. Going a step further, Investing InBullion always stands behind their product by offering a full"money back guarantee" (see our website for details).Thank you for considering Investing In Bullion !Website: