Investing in precious metals like gold is perceived as a lucrative endeavor if you know what to do. This hundred-billion industry is expected to grow at least 9% per annum, and this is a forecast that’s expected to last until 2027. However, entrepreneurs have been trying their hands on these metals for a year and are known to get disappointed with the results.
This is because most gold metal investors invest according to their popularity and reputation. If you want to get massive returns, it’s essential to have an established name in the industry and master everything about testing and sourcing these precious metals. Experts in jewelry, coinage, and bullion typically get higher returns than those who don’t do their research.
When you’re just starting, you may want to get a feel for the industry with the help of precious metal companies. There’s an IRA metal resource online that you can rely on if you want to diversify your portfolio and ensure that you have a hedge against inflation. Other companies are there to help you open a self-directed individual retirement account, so you can start adding coins and bullion to your retirement.
Regardless of if you want to trade gold or add this into your retirement, it’s vital to forge a relationship with trusted wholesalers and dealers so you’ll get discounts. Companies often recommend you the ones in the industry for years, and you may want to try them first. The best ones will help you scale your business and grow your portfolio rapidly,
However, until you’ve amassed a significant capital to open an account with the more prominent players or market-makers, you need to start small and strive to get the mid-seven figures to do deals with the market-makers. This is because they usually buy directly from the mint, and this is where you can get discounted rates and lower spot prices.
When you’ve successfully opened an account with the market-makers, know that you’re not there yet. You should start with auction houses, public retail showrooms, and pawnshops so you can source a hefty amount of gold.
Check with the auction houses and local jewelers to see if they are hosting a sale of genuine gold and other precious metals. Another thing to do is find local safety deposit boxes with super affordable rates to secure your metals. If you’re considering adding these into your individual retirement account, get recommendations from depositories from trusted precious metal companies in your area.
It’s not a good idea to buy from classified ads, eBay, or Craigslist to avoid frauds and scammers. Stick to the trustworthy suppliers that will ship your gold bars and coins in time. When you deal with someone near you, there’s always a possibility for a due recourse if you’ve accidentally run into bad actors. Read more info about avoiding scams on this page.
About the Testing
When it comes to testing, you might know a local jeweler or pawnshop owner that will let you know whether you’re buying the real thing or not. However, with the major market-makers and distributors, the process of testing becomes less important in the long run. There are certificates and seals from independent analysts that prove that the bullion you’re buying is authentic. Tests that are conducted are done through the following:
- Electronic Tests
- Acid Testing
- X-ray fluorescence or XRF Testing
It’s not enough to rely on the hallmarks of the bullion or coins. These marks are easily faked, and you will never be sure of their value. If you want more proof, purchase acid testing kits that will let you hand-test silver, platinum, palladium, and gold.
Electronic testing may be a suitable method for testing lower-carat metals. However, they might misinterpret the silver-plating or gold-plating from the genuine articles. There are portable ones available from online platforms if you’re interested in buying them.
Lastly, portable x-ray fluorescence testing may be an expensive option, but they are very valuable, especially if you’re going to buy in bulk. There’s the detection of authenticity through the highly-reliable spectrometer. However, they will cost you more, and they range in five figures if you want more proper equipment. Learn more about the fluorescence method in this url: https://www.sciencedirect.com/topics/materials-science/x-ray-fluorescence-spectroscopy.
Another thing to do is an estimate and accurately determine the value of the metal. You need to know this as an entrepreneur, and you need to have a good eye on the coins and bullion that you’re selling, buying, or refining.
There are desktop services and mobile applications that will help you estimate. As a good rule of thumb, the closer the metal to a 24-carat gold, the higher its value by weight will be.
Becoming a Professional
Once you know how to achieve seven-figure annual sales, there’s a possibility to get the best deals through the big companies. You may want to start frequenting the pawnshops, local auction houses, and estate sales for gold until this point. These are the market-makers who only transact with accredited and sophisticated investors.
From there, it’s going to be a matter of rigorous estimating and testing. It would be best to become a trusted name and a known brand in this business. The road to success may feel arduous and lengthy, but it will be worth it in the end. After all, the industry of precious metals is considered to be evergreen, and it has been around for thousands of years, and it will be here to stay.