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5 Things to Know Before Investing in Gold and Silver

Investing in gold and silver is often considered to be a relatively safe option when compared to stocks and shares. A new analysis is predicting rapid growth in the value of these precious metals.

Now could be just the time to make your first investment.

We look at why they’re considered a safe investment, and what you need to know before investing in gold and silver.

1. Gold and Silver Hold Their Value

It is important to say that all investment involves risk. While precious metals are often considered a safe bet, they can fall as well as rise in value. But they’re generally a better bet for retaining value than equity-based investments.

Not only can they be generally relied upon to hold their price, and they are two of the most popular investments in the world.

This is because their value remains relatively unaffected by economic and political instability. And if there’s anything the markets hate the most, it’s instability.

Traders often rush to buy precious metals if things are looking shaky. No matter if a currency loses its value, or a government enters an unstable period – investing in gold and silver is seen as a safe haven.

Of course, gold and silver do go up and down in value over time, and you should be taking that into account. Their values can be affected by many things, which means that you need to see the big picture.

For example, if a lot of silver is mined one year, there may be more than enough to meet the demand – leaving a surplus in the hands of the mining companies. This would cause the price of silver on the market to drop.

Or, if not much silver is mined,( Buy Silver Coins) scarcity will drive prices up. You can try and time your purchase to land when there’s a surplus, but no one can predict the future – it’s difficult to know when is best to buy.

For small investors who have little appetite for risk and cash which is earning nothing in the bank, precious metals could be the perfect investment.

2. What Type of Gold and Silver Should You Buy?

There are many different types of gold and silver to consider buying as an investment. Coins are struck by many different countries and come in lots of different designs too.

There are also bars available. The standard size is called a Good Delivery bar, which has a weight of 400oz. It also has many other specifications of quality which are set out by the London Bullion Market Association. This is an international standard.

The question of what you should buy isn’t straightforward.

Coins are convenient. They’re small and transportable, which might suit a small-scale investor. However, there are different types of coins. Some are weighed out to be a single ounce of gold and silver.

On the other side, there are numismatic coins – these are collector’s items. They do sometimes have a very high value if they are particularly rare imprints.

While the Good Delivery bar standards are used for trading purposes, in reality gold and silver bars come in various weights, from the very biggest in the world (a 250kg gold bar produced by the Mitsubishi Materials Corporation) right down to 1g.

3. It’s One of the Few Asset Classes That You Have Physical Control Over

Gold and Silver are unique in that you can own and move around with an asset class that is extremely liquid with an international benchmark price.

There are many physical investments, like property for example. But you cannot put a piece of property in your pocket and walk away. At the end of the day you own a piece of paper that states you own that property and trust the issuing government that the property stays yours.

Even with cash, people consider it as a physical asset class when they see their balance on their account statement. People don’t realise the difficulty they would experience from their bank if they were ever to try and take physical ownership of their money.

Diamonds are a similar asset class to Gold and Silver in that they are in your complete physical control but high buy/sell spreads and the lack of consistency in price make (LPM.HK) it less desirable as a store of wealth.

4. How Do I Go About Investing in Gold and Silver?

It’s as simple as buying your first coins – bingo, you’re investing in gold and silver.

We’re an authorized distributor and official partner of many countries’ mints, meaning you can pick up your very first coins right here.

If you decided you’d rather invest in bars – we’ve got those too.

Next, you need to think about where you’re going to store your investments.

5. Where Should I Keep Gold and Silver?

It goes without saying that if a thief can gain access to your gold and silver, you probably won’t see it again.

You need to think very carefully about how to store precious metals. You can store it yourself, which is perhaps the riskiest approach. If you lose it, it’s gone – no one will replace it for you!

Instead, why not consider keeping it in a safe deposit box? You can talk to a bank about this. However, most banks aren’t particularly interested in storing precious metals these days – they’re moved online.

Conversely, there are still services like ours which specialize in the expert storage of precious metals.

There are minimum amounts of gold or silver needed before any service will store your gold for you, but these are kept to a sensible minimum.

Talk to us today and find out how we’ll keep your precious metals securely stored, with full insurance coverage from Lloyd’s of London.

( Source: LPM Blog )

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Buying Gold in Asia: Local Laws, Travel Restrictions and Best Places to Buy

Where is the best place in Asia to buy gold, what should I be buying and how much can or should I buy to avoid my investment being confiscated by customs? These are all the questions you’re likely asking; we’re here to answer them.

Whatever reason you have for wanting to (Buy Gold Coins), rare metals are likely the best investment you can make.

Different forms of Gold, how do I choose?

There is an abundance of types of gold to choose from when considering your investment, so which is right for you?

Gold Coins – If you’re looking at starting out with an investment in gold, or for those looking for the solace of a tangible investment, gold coins are a good place to start. Gold coins can be procured from a variety of coin dealers, banks, online platforms and government mints. The markups on these coins vary, but the premiums are a small price to pay for the portability and liquidity of the bullion coins. Popular one-ounce coins include the Royal Mint Britannia, Australian Kangaroo, Austrian Philharmonic, etc. Collectible coins or numismatic coins are priced according to their collection value and depending on how rare they are, this can be significantly higher than the spot gold price.Gold coins from Sovereign mints are issued as legal tender. This has several advantages. You are purchasing gold which has a guaranteed weight and purity from the issuing government. Having a lower face value than the melt value can also have some tax advantages (more about this later on). It is considered a far more punishable offense if someone tries to fake a legal tender coin as opposed to a bar from a private mint, thus discouraging imposters. Gold coins are usually sold in very tradable weights and are the most liquid form of physical gold. Finding a buyer for a gold coin is going to be easier and faster than finding someone to buy a bar. Verifying the authenticity of a coin is easier for the person purchasing it from you as well.

Gold Bars – Gold bars or bullion bars are sold per kilo, ounce and gram. The larger the bar, the lower the premium but less liquid. Small bars are more labor intensive and thus carry a higher premium. Most bars are produced by private mints, as opposed to government mints for coins and do not have a legal tender face value. The premium for bars is usually lower than for gold coins.

Gold Certificates – If you’re worried about theft or storage but still inevitably drawn to investment in physical gold, you could consider gold certificates. Gold certificates allow investors to own gold without taking physical delivery. The physical gold is held by the institution who issues the certificates. While more convenient to purchase or hold, you still have to pay for fees related to storage and insurance. You also run the risk of taking on the issuing institution’s third-party liabilities.

Looking for more information on the type of products available? LPM’s wide range will give you up to date information about the variety of gold or silver available to you, and highlight its value and best pricing as well.

What are The Laws for traveling with Precious Metals on your person in Asia?

Unless you’re gung ho and intend on flying with a money belt and/or concealed compartments in your bag, you’re likely wondering what the restrictions are when traveling with gold or silver. How much are you allowed to carry in total value and is it considered legal currency where you’re traveling to?

The rules governing the personal transportation of precious metals across international borders are by no means consistent. The rules vary by country, for example, presently in the US, it is not illegal – except for special embargoes for countries like Sudan or Iran – to fly or travel with any quantity of precious metals on your person. Large sums of cash must nearly always be declared at international borders, as an example, in China, anything over $5000.00 USD has to be declared.

The two best countries for buying gold in Asia, in our opinion when considering all the research and comparing pros and cons, are Singapore and Hong Kong:

Singapore – Only precious metals in the form of an ingot, wafer, bar or coin which meet certain criteria can qualify as Investment Precious Metals (IPM) in Singapore. Precious metal coins and the specific criteria that qualify as IPM are prescribed in the GST Act, for all the details you can refer to the IRAS e-Tax Guide. You will have to fill out an application for an exemption permit which you then have to declare at the red channel checkpoints upon arrival in Singapore. If you’re planning on bringing any cash to Singapore, you have to declare anything that exceeds SGD 30,000 (roughly $21,468.88 USD) or the equivalent thereof. The premiums in Singapore are reasonable but not as low as Hong Kong.

Hong Kong – Dealers have some of the lowest bid/ask spreads on retail precious metals and it’s also an excellent place for storage options. You can buy investment grade gold coins in Hong Kong for just a few dollars over spot and can often sell items for more than spot. There are no taxes on either buying or the selling of gold and silver coins/bars for personal use in Hong Kong as well as no import duty. Hong Kong is a major global hub for precious metal sales and storage.

In contrast to HK and Singapore, China allows only 15 banks to import gold, including three foreign lenders. Any precious metal under 50 grams for personal use i.e. jewelry can be brought into China without having to be declared at customs, anything above that needs to be declared.

Legal Tender Face Value

Bullion coins from Sovereign mints will have a face value, e.g., The Royal Mint Britannia 1oz Gold coin is 100 Pounds. Generally, the face value of legal tender coins is an arbitrary figure, but there is an argument that these can be claimed on their face value as opposed to their value in gold. This can have some tax/customs clearance advantages, but this would fall into a legal gray area.

Generally Speaking:

The general limit (at the time of writing this) is 10,000.00 USD/EUR/GBP. It is recommended that you don’t carry more than 10k in market value, or whatever the local declaration equivalent is. Large sums of cash or valuable items are likely to draw suspicion and inspection which can be easily avoided. If you have to travel with an amount more than this, declare it, this could save you a lot of hassles down the road.

There are no duties and taxes when you carry your own personal coins and bars across (some) international borders, as long as they are YOUR personal possessions like cash in your wallet, clothes, laptops, etc. Jewelry also doesn’t have to be declared if you wear it as your own, but you can’t exactly don 10kg of heavy gold chains like Mr. T in the A-Team, the metal detectors would go berzerk. Problems can arise if your items are deemed to be “imported goods” or anything of a commercial nature, and if this happens, you will fall under a different set of rules. For example, if you haven’t paid VAT on the goods somewhere else and flew into those countries that charge VAT i.e. most of the Eurozone, a local VAT charge might be applied.

If you intend to carry coins or bars personally, it is advised that you contact the relevant Customs and Border Protection Agency ahead of travel, inform them of your intentions and ask how you can go about it in a way that conforms to the law, even better if you can get this in an email. Rules vary from country to country and although we can give you a broad indication of what the rules look like we would encourage you to inquire directly from customs for the countries you are flying in and out of.

How Safe is it to Buy Gold Online?

There are thousand of forums, websites, and threads that tackle this very question, so I’ll take all that they have to say and simplify it for you:

Use your wits, if it looks too good to be true, then it is.

Go with sites that have verified and reliable partners

Speak to someone at the company, pick up the phone and give them a call. There’s no better way to check out a company than talking to a real person with experience to quickly determine the validity of a company.

Engage in a conversation online, ask questions on the sites’ forum or contact pages.

Check related social media pages for comments and reviews from other buyers.

Most of all look for a good track record, a good track record doesn’t lie so go ahead and Google the company.

( Source: LPM Blog )