Precious Metal Missives

[Arganto]

Discovering the world of precious metals was something of an eye opener for me. It was quite something to discover a whole world of trading and collecting that almost seems to have been hiding in plain sight up until the time I began to seek it out. It seems second nature now for me to check bullion dealer websites, the spot prices of gold, silver, platinum et al and the posts of my fellow members on this very forum. Prior to my journey into accumulating gold and silver the trading of precious metal as far as I was concerned was something governments, banks and heist movie villains were involved in. Oh, and Kelly and his Heroes.

I had a gut level feeling some time late in 2019 that something was wrong with the world on a fundamental level, so much seemed steeped in bluster and misdirection from the bickering over the EU and Brexit, the reasons various conflicts were breaking out and the state of the major world currencies to name a few examples. I won't go into my feelings and opinions outside of the scope of this particular missive, but suffice it to say that due to my concerns over the outlook for what I used to call money I travelled a path that lead to gold investment. Many DuckDuckGo, YouTube and Bitchute searches allowed me build a general picture of what had happened since the turn of the century and how things had developed to the present day. I was fascinated by the way gold functioned as a store of value and how the perceived big players moved in and out of their holdings of the dense, yellow metal as the state of various currencies fluctuated due to deflation, inflation and all the other 'flations that seemingly exist. I found it interesting that despite the fact that all of the major world powers no longer operate their currencies on a gold standard they still held gold reserves. If countries do it, then shouldn't individuals?

Applying some of this newly acquired knowledge, hopefully working out what information was applicable and not just hyperbole, I started seeking out places to trade. At first this was daunting, and although I consider myself reasonably thorough with my research I found it difficult to make the leap to buying gold over the internet. The perception of the business was paramount to me at first (where they were physically situated, customer reviews etc.) as there was the fear of losing any money proffered when taking the plunge. I had no guidance from 'real' people as I didn't know anyone who traded and didn't want to make a lot of noise about my intentions for reasons I suspect are obvious to those who are reading this.

I dealt with good people during my first trade, and managed to get a reasonable deal on what I decided upon. As I was looking to the future with an understanding of the direction the currency value of gold may take I chose capital gains tax exempt gold. Due to this first trade I also became more aware of silver which I hadn't really considered buying initially as I had read so much about it being more 'speculative' and 'volatile', unlike gold which was more of a true hedge and store of value. These notions would soon take a back seat once I got my hands on some of the stuff. Gold is wonderful and in my opinion should be the backbone of any precious metal holdings if your intention for your 'stack' is to hedge against any turmoil suffered by the world currencies, but silver is beautiful. There is so much more of it per exchange of fiat currency. There is a difficult to describe phenomenon that occurs when you handle your first piece of pure silver; the shine, the weight when considering the size of the coin/bar/round, the intricacies of many of the designs. It really is something.

I have rapidly gained knowledge and experience since that first purchase, especially since joining this forum. An eBay purchase of a Victoria young head shield sovereign raised some questions due to nerves and my complete lack of experience with the coins. I knew I wanted one and had worked out a Sydney Mint shield back may be a decent way of owning a sovereign that had the potential to be 'worth' more than just it's weight in gold. That and I thought it was a lovely thing to behold. After receiving encouraging advice I kept the coin and have not looked back since. The trade section opened up an avenue of trading that I hadn't experienced before. Here was a group of people trading in high value items with nothing more than a trust in each other's reputation and an apparent 'faith' in the system that had been created within the site. It was impressive and oddly I felt none of the nerves I had experienced previously when trading with dealers the first few times. I have learned over the last few years to trust my gut instinct, intuition is a real thing as far as I'm concerned and having faith in it has steered me right many times.

With this post I did not want to attempt to create anything that I do not yet feel qualified to write. Although I have crammed a lot of learning and quite a few trades into a relatively short space of time I am still fresh faced in this hobby, this preparation, this world of precious metals. I wanted to show that it is likely that many of you will have got to this point by similar means, and to share some of my feelings and thoughts on the subject.

Find out as much information as possible that may pertain to the purchasing of precious metals, especially any large quantities. Are there any implications for taxation along the line? Look into your capital gains tax (CGT) allowance and work out whether any potential sales you may make will affect this. It you are only looking to hedge and don't care for the aesthetic aspects of the metal then look for the lowest premium CGT-free metal you can find. If you peek over the edge of collectible designs and numismatics and fall right off that cliff then always try to bear in mind how you will look to sell these items in the future. You will hear talk of an 'exit strategy', something I was lucky to be made aware of early on. It's not some kind of bedroom code for when things get a bit too spicy, but rather the plan you may have for getting out of precious metals whether partly or wholly. Even if you plan to stack for a long time life can throw up unforeseen circumstances; work out how you could sell your metal quickly and/or for the best return before the time comes.

Be careful about getting carried away. You may find, as I do, that acquiring new metal becomes something of a mild obsession. I think that the kind of person who has the mindset to consider buying precious metal and who has their ear to the ground listening for the vibrations that underlie the facade of day to day life may well have obsessive tendencies of one type or another. Or maybe I'm just looking to justify my own! Either way, try to remain focussed. If something doesn't feel right about a purchase or you've torn through your monthly budget or expected expenditure on precious metals then take a breath. Sometimes a deal is too good to pass up, but most of the time something comparable will be available later on if now isn't a sensible time.

Don't let the spot price rule your life. Try to make an educated decision about any purchase, work out what the going rate has been for what you're looking at but most importantly work out if you're happy paying what is asked. Premiums are high currently, especially for silver, and it can be difficult to judge what the intrinsic value of any given piece is especially if it carries collectible value as well. Don't be afraid to ask around, but it's best to do as much as you can for yourself beforehand. Ebay can be a reasonable guide on occasion, but it too seems to have decoupled itself from reality in many regards.

If you're lucky enough to develop your collection past a few pieces then keep records with the salient points; cost of each piece, volume/weight, who you bought it from and anything else that will help you. Keep this record secure and away from prying eyes!

There are many things to consider when buying, owning and selling precious metal. As you're reading this on this particular forum you are in an excellent position to learn. Enjoy the hobby and get involved in your future and the future stability of your family's finances. It's much more fun than leaving your devaluing government debt notes in a low interest savings account that's for sure!

[HerefordBullyun]

Good article and well written. Best of luck in the comp!