Did you know that 2020 was the year of gold? As the pandemic raged, more people turned to gold for their investing needs, driving the price to a record high of $2,067 a troy ounce in August.

This is partially due to the uncertainty that people felt as the pandemic spread. One of the most popular investment methods was purchasing gold and silver coins. If you’re new to investing in gold, this can be a smart option for the beginner investor.

This guide will give you some tips and tricks so you can get started investing in gold.

Only Work With Reputable Dealers

Once you decide that you’re ready to buy gold and silver, you’ll want to look for a trustworthy source. The dealer should be respected in the precious metals buying and selling industry.

Try looking through the American Numismatic Association’s dealer directory. You can trust that these dealers are thoroughly vetted and adhere to a strict code of ethics.

Market Knowledge

The price of precious metals changes daily. Check the price any time you plan to execute a deal. This applies to both buying and selling.

If you’re buying bullion coins, you’ll need to understand their different market values and how they perform. If you’re just getting started, it can be easier to focus on just one.

• American Eagle
• Canadian Maple Leaf
• South African Krugerrand

There are also price changes when you buy fractional gold pieces vs. one-ounce pieces.

Understand the Fees and Commissions

It’s easy to get distracted by the market rate of the precious metal and the coin you intend to buy. However, this is only half of the story. Ask the seller about the fees and commissions that are associated with your purchase.

You may find that what looked like a great deal, in the beginning, turned into a bad one when you factor in these extra charges. The average commission for a Maple Leaf or American Eagle one-ounce gold coin is about five or six percent.

Ask for Delivery Dates

The best option is to take immediate delivery of your coins. However, this isn’t always possible. If you buy your coins online, ask the seller for written confirmation of the expected delivery date.

Never buy from someone who can’t provide you with solid documentation of delivery.

Recognize the Risks

All investments come with risk. The trick is understanding and accurately judging the amount of risk. Then knowing what your risk tolerance is.

Take time to learn about the coins you intend to buy before you buy them. This prevents you from making a hasty purchase or paying too much.

Start Investing in Gold and Silver Coins

By keeping these tips in mind, you’re ready to start investing in gold and silver coins. Start by learning about the market and the fluctuating prices. Then research a reputable dealer to do business with.

Understand the fees, commissions, and risks involved with your investment. Monitor its performance and adjust your strategy as needed.

Browse our other money articles for more helpful financial advice.