What Type of Bullion Should I Buy?

Bullion is a sound investment, especially during times of economic uncertainty. No matter whether gold, silver, or platinum, precious metals tend to hold their value and appreciate, unlike stocks and some other types of investments, which tend to falter when the economy does. Bullion makes a promising investment for yourself and your family, but it can also make a wonderful wedding or birthday present, as it will likely continue to grow in value as the years go by.

Types of Bullion

There are many types of bullion to buy. Bullion is made from a variety of precious metals and in a variety of shapes and sizes. Look to AmFed Coin & Bullion's official buying guide, which includes bullion buying guide tips. Members of our team are available to discuss the different types of bullion with you; however, choosing which metal and form of bullion is entirely up to you.

Gold Bullion

Gold has long been a favorite choice, not only because of its attractiveness, but also because it has been considered a universally safe investment around the globe. Despite its limited industrial use in jewelry and electronics industries, gold remains a priority choice for those experienced in bullion investing.

Silver Bullion

Although known as being more volatile than gold, silver has recently been appreciating at higher ratios, likely due to its increased use in electronics, including computers, smartphones, and cars, as well as solar technology. Investors are now more highly regarding silver as a prime choice due to its current above-normal gold-silver ratios. Long considered a more affordable investment, silver is also often the choice of first-time bullion investors.

Platinum Bullion

Less traditionally thought of, platinum offers additional value for diversity within a portfolio. However, platinum is considered far more sensitive to market changes than silver or gold, despite its variety of uses in jewelry as well as automobiles. Platinum typically trades at a higher value than silver, and despite it sometimes being valued higher than gold, it can come in lower value than gold, as is currently the case.

Bars vs. Rounds vs. Coins

Choosing between bars, rounds, and coins is also a matter of choice. While each is often valued at its meltdown weight, coins and rounds make an attractive purchase, especially when offered as a gift. Coins are generally minted by a government, are limited in number, and are often stamped with a trade value. But that does not mean a coin's value could not see appreciation in years to come, especially if a particular coin becomes rare in numbers.

Also known for their attractive appearance, gold, silver, and platinum rounds are made by private mints or refineries rather than governments, although they may be designed to replicate classic coins. Rounds are often prized for their artistic appearance as well as the weight of their precious metal.

Bars are generally offered at lower premiums, making them a solid choice for investors, often sold in volume at a lower cost per ounce.

Investment Grade vs. Numismatic

As previously mentioned, bars are often sold in volume and are considered investment-grade. Numismatic grade considers a variety of variables such as age and design of coins or rounds, as well as the materials, the craftsmanship, and the historical value of a piece.

The more collectible the piece, the higher its worth, sometimes well above that of its investment-grade value. While not all, some numismatic pieces have an actual mint mark, often making them even more highly collectible. If you are into numismatic collectibles, that's great. But remember that some have a limited niche market and, as such, should you want to sell, you may find yourself in more of a buyer's market than a seller's one.

Choosing the Best Bullion to Buy for Your Goals with AmFed Coins & Bullion 

Investing in bullion can be complicated yet rewarding and fun. Do your homework in choosing which bullion to buy as an investment or a collectible. AmFed Coin & Bullion is here to help. Whether buying or selling, the AmFed Coin & Bullion team is available to help address your questions and give you honest answers about today's market. Contact us today!

Image Credit: VladKK / Shutterstock

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