In light of the current status of the global economy, investing some money in gold is an exceptionally intelligent investment move. Amidst all the volatile shares and currencies, gold is perhaps the only commodity which had been stable during financially uncertain times. Investing in Canadian Bullion can also save you from the impact of inflation.
Saying that, nowadays, buying gold has become a complicatedfor investors. You have to be aware of the factors that you should avoid to show sound judgment about investing in gold. In the below portion of this article, we will be talking about the tricks following which you can save yourself from losing money.
What To Check
There are some factors which an experienced buyer often considers before investing in gold. If you are a first-time investor, then you must follow all these factors to the tee. If you already have some experience in buying gold, follow the below tips to make sure you have not gotten complacent.
- Allocated Bullion
While investing in the gold bullion, the first thing you need to ask is whether the physical bullion belongs to you directly. This is the single most important factor that you should identify before investing in them.
- Bar Serial Numbers
Before investing, you should know that the gold and the silver bars come with a unique serial number. The refinery puts the unique serial stamp on each of the bars that weigh more than a certain amount.
For example, the gold bars that weigh less than one gram do not come with any identifying serial number. According to the market experts, it is not practical to put stamps on the bars that weigh less than one gram. The bullion providers, on the other hand, help you to keep the bullions segregated or save them as a pooled storage.
When you buy the gold bars as an investment, make sure you get the list of the serial numbers of the bars. This is a rule that you should follow irrespective of the storage style you choose. If you buy the bars that do not have any serial numbers, make sure they are kept in a sealed container, which comes with its own serial numbers. The serial number of the sealed container should be handed to you by the companies you deal with.
It is the serial numbers of the bars that will help you to identify and inspect them when and as you wish. It is the same for the sealed containers as well. If you don’t have the serial number, it would be impossible for you to identify the gold bars that are supposedly yours. It will also be difficult for you to prove the ownership of the bars without the help of the serial numbers.
The Canadian Bullion does not have any serial numbers on them. While some refiners choose to stamp the bullions, most of them skip it. Instead, put the stamp of the serial number on the wholesale package from the refiner or the mint.
If you search properly, you can get your hands on the silver and gold coins that have their own packages. However, you have to deal with the coin dealers, mints or the refiners to get these packaged coins.
The coins that you get from the secondary market generally do not come with their own packages. The companies that buy these coins from the mints or the refineries, break down the packages of the coins and put them in separate bags with serial numbers. This makes it easier for the customers to identify the coins they have bought from that particular company.
Exception That You should Know
There is an exception to the gold investment rule that proves its efficacy. This exception is related to the pooled Canadian Bullion bars. As the vaulting companies often buy the larger wholesale bars, the money you invest might not be enough to buy a whole gold bar for yourself. In such a scenario, you can share the bar with others who also do not have enough money to buy a whole bar.
In this case, you might not get the serial number of the bar. That does not mean that the bar is not there. The fact is, you can only have a serial number for bars that you wholly own.
Each of the subsequent payments that you send enhances your share of that bar until you own the 100%. The moment you reach that number, the serial number of the bar would be sent to you. To make this problem of ownership easier, some providers choose to offer bars that weigh much less. However, these are not generally available as the pooled bar.
All in all, while investing in gold, you should know that the Canadian Bullion that you bought is your personal property. You can do whatever you wish with it. That includes personal investigation of the bullions and the gold bars that you have bought. Before investing any money, talk to the financial experts of the company to check whether there is any sign of shady practice.