Understanding the Pros and Cons of Some Bullion Companies
It is becoming harder and harder to find legitimate reviews of gold and precious metal bullion sellers. There seems to be so much coverage out there and misinformation that it is difficult to find the truth from fiction. After all, the number of scam companies passing themselves off as legitimate ways to invest is just crazy.
That is why today, I am going to go over some of the different positives and negatives that a seller can bring to the table. For most of this, I will refer to them as brokers, so keep that in mind. There are many out there in the world, but not all of them are created equal. Finding good websites that write reviews is certainly a challenge, hence the need for coverage like this.
Gold Investing: What’s the Big Deal, anyway?
Now, you may be wondering why this is something worth talking about in the first place. It is not as if investing in things like gold is anything new, after all. People have been doing it for centuries at the very least, as it has historically been a very popular and expensive form of demonstrating wealth.
It probably comes as no surprise that it is still a form of investing today, as well. There are even academic papers about it, as you can see here: https://web.archive.org/web/20150527122338/http://eprints.hud.ac.uk/23829/3/NtimAccepted_version_March_2015.pdf. Across the world, economists and financial experts continue to debate whether it is worthwhile or not.
In general, it is hard to give a definitive answer to this. I think it all comes down to where you decide to purchase your gold from if you are going to invest in it. Obviously, some places are perfectly reputable, and thus in the long term, your investment will hold its worth. However, for some of the brokers that are more likely scams, the same can not necessarily be said.
As far as the pros of gold investing go, there are plenty. For example, gold is a liquid investment, meaning that it is easy to sell and liquidate when you want a little extra cash. In addition to that fact, though, this property also means that you can purchase it with relative ease when you do decide to do so.
Of course, that is not all though. It can also serve as something known as an inflation hedge. Hopefully, this grabbed your attention, considering how the United States in particular has been grappling with insane inflation levels in the past few months (thanks, covid). Gold does not lose buying power like paper currency does, and that is how it can act as a form of protection against this.
Another thing to take note of is that it can serve as a way to diversify your portfolio. Did you know that doing so is something that a lot of experienced financial gurus try to prioritize? A lot of us might be under the impression that having a savings count and one rental property or something like that can suffice as a way to keep ourselves secure for the future.
Unfortunately, it often times ends up not being enough, as a myriad of things can go wrong along the way. That is why having many different types of holdings can be beneficial, so if those worst-case scenarios do occur, you can have a backup plan.
What about the cons, though? Well, of course, there are some of those too. Some pages do not like to admit that, but when you read something like BullionMax Reviews it can offer you perspectives on both sides of the fence.
The first thing that most people tend to bring up is how difficult it can be to store gold. Precious metals are not example light or always easy to carry, especially if you have a lot of it. Often, you need a specialized location to store it. Some of the places that offer this service are known as custodians, and more often than not they do cost you money.
So, that is one of the bigger downsides to it. What else, though? Unfortunately, having gold sit there is not a method of passively earning income. A lot of economists advise that most, if not all of your investments should have ways to generate additional cash passively, so that is certainly a knock against it.
Finally, there are usually additional taxes and premiums that you have to pay on precious metals. It seems unfair to a lot of people, and that is why I highlight it. Just note that trying to set up a retirement account using it can be a bit of a hassle.
What To Look for in Brokers
Now that you are more familiar with the topic, let me dive into some green flags for precious metals brokers. The first one to note is whether they are a part of the Better Business Bureau, often referred to as the BBB. This is a sign that you can trust them (at least, generally speaking), especially if they have a four-star ranking or higher. That is usually the first thing that I look at when evaluating websites or companies that I am unfamiliar with.
Next, check out their customer service. Are the employees there helpful and welcoming, ready to explain whatever you need them to, or are they rude and standoffish? That might sound like a bit of an extreme in terms of the polarization, but I have had my fair share of negative encounters, so I speak from experience.
In general, just do not be afraid to ask questions. Do not feel bad if you are on guard at first, because it is totally fair given the current climate on the internet. With the number of scams out there, it is probably best to be wary anyway.
So – exercise caution, but you should not be afraid to start investing, either! Just go with your best judgment and check out some reviews, and you should be fine.