Precious Metals: seven key criteria for deciding what to buy

Only when you have actual metal in your possession do you have a hard asset that is free of counter-party risk.

During a financial crisis, the melt value of your coins may be all that matters. Then the value of your investment will be measured by how many ounces you were able to acquire.

By owning precious metals in multiple smaller unit sizes, you will be able to use them in multiple ways – displaying, bartering, trading, gifting, etc. Consider fractional gold coins/rounds, including half-ounce, quarter-ounce, and tenth-ounce sizes.

Gold and silver spot prices are globally traded and recognized everywhere. Reputable dealers will buy most common coins, rounds, and bars nearest to the spot price.  Platinum and palladium represent a small share of the retail bullion market and therefore are less liquid than gold and silver unless you are buying and selling from a large national dealer.

Purity isn’t something to be concerned with. Some gold coins, namely American Eagles and South African Krugerrands, are alloyed with base metals for strength. But they contain the same amount of gold as a .9999 pure coin. There are certain purity requirements for physical precious metals to be included in IRAs. Most common gold and silver bullion products are IRA-eligible.

Purchases made by credit card, check, or bank wire generally don’t need to be reported by dealers to the IRS or other government agencies. With rare exceptions, only actual cash transactions of more than $10,000 must be reported to the government.

Some bullion products offer the opportunity for additional profit due to the potential for premium increases.
Some current limited-mintage coin releases could also acquire collectible value over time.