THE BASICS OF BUYING BULLION ONLINE IN NZ
As the value of paper currencies around the globe continues to fluctuate, and as inflation continually makes those currencies worth less than they were last week, more and more people are starting to recognise the attraction of buying bullion. If you are interested in investing in precious metals, however, know that there is going to be a bit of a learning curve to the process. Read on for the basics of learning to buy bullion in New Zealand.
What Is Bullion?
The first big question that most beginning investors ask is what the word ‘bullion’ actually means? In some circles, it can seem like ‘bullion’ is used as a blanket term to describe all gold and silver, or indeed, all precious metals in general. However, the actual definition of bullion is more concrete than that and is crucial to know and understand before you open up your laptop to buy bullion online.
Essentially, bullion is any precious metal commodity that is being sold or traded for its actual metal content. For instance, governments throughout history have assigned value to different coins, but most coins containing precious metals are traded in complete disregard for those denominations. Instead, the coins are traded as bullion, with their weight and content of actual precious metal determining their real value. The word ‘bullion’ can also be used to describe gold or silver bars or even just pieces or lumps of gold or silver. If the precious metal object is being bought, sold or held with a value based on metal content, then it falls under the category of bullion.
HOW SHOULD I START TO BUY BULLION ONLINE?
The basic definition of ‘bullion’—of precious metal traded based on its value in metal content—pretty clearly reveals the benefits of buying precious metals for investment purposes. Since metal actually has intrinsic value—unlike most paper currencies, which are backed by no commodity—it tends to hold its value better than most other commodities on the planet. In the case of an economic crash or a spike in inflation, the value of paper currency could take a massive nosedive, but gold and silver would retain their value. As such, most people who decide to buy bullion do so at least in part to protect their financial security.
Beyond the benefits of buying bullion, there are dozens of other frequently asked questions for first-time bullion traders. Chief among these questions is whether it is better to buy bars or coins and whether gold or silver makes for a better investment.
Ultimately, the answers to these questions will probably depend on you and how much money you want to spend on bullion. If you are just starting small, you might be better off investing in silver coins. Coins are more recognisable and are easier to barter with, and silver is typically easier to trade in small quantities because of its lower value. If you are buying bullion in NZ with the goal of making a sizable investment, though, dealing with thousands of coins can be unwieldy, to say the least. You might be better off getting your investment in a few high-value gold bars instead. Bars are easier to count and keep track of, and gold is worth more, making it easier to transport, store or conceal.
Do you have any additional questions to ask before you start to buy bullion online in New Zealand? At Bullion Deals, we are happy to help you become accustomed to the world of precious metals investing. Click here to contact us directly.