How to Buy Precious Metals

Step 1: Define Your Investment Goals

Before buying anything, clarify why you're investing in precious metals. Common goals include:

• Wealth preservation: Protecting savings from inflation over the long term.
• Portfolio diversification: Adding an uncorrelated asset to reduce overall risk.
• Retirement security: Rolling over part of a 401(k) or IRA into physical metals.
• Emergency preparedness: Holding tangible wealth outside the banking system.

Your goal influences which metals, products, and strategies make the most sense for you.

Step 2: Decide How Much to Allocate

Most financial advisors recommend allocating 5%–15% of your investment portfolio to precious metals. For beginners, starting with a smaller position — even just one or two ounces of gold or a roll of silver coins — lets you learn the market with limited exposure.

Step 3: Choose Your Metal

• Gold — Lower volatility, highest global recognition, best for preservation. Start here if you're new.
• Silver — Lower price per ounce, more accessible, higher upside potential, industrial demand tailwind.
• Both — Many investors hold a core gold position with a smaller silver allocation for growth potential.

Read our Gold Investing Guide and Silver Investing Guide for deep dives on each metal.

Step 4: Choose Your Investment Vehicle

• Physical bullion — Direct ownership. Buy from a dealer, take delivery, store securely.
• ETF — Convenient, low-cost, but no physical ownership. Trade in any brokerage account.
• Precious metals IRA — Tax-advantaged physical ownership. Best for retirement funds. Read the IRA guide.

Step 5: Select a Reputable Dealer

For physical purchases, dealer selection is critical. Use these criteria:

• Member of the Professional Numismatists Guild (PNG) or Industry Council for Tangible Assets (ICTA)
• Transparent, real-time pricing on their website
• Clear buyback policy (the best dealers will repurchase what they sold you)
• Positive long-term reviews on third-party sites (BBB, Trustpilot)
• No high-pressure sales tactics or aggressive upsell toward numismatic coins

Step 6: Choose Your Product

For most new investors, the best starting products are:

• Gold: 1 oz American Gold Eagle or 1 oz gold bar from a major refinery (PAMP, Perth Mint, Valcambi)
• Silver: 1 oz American Silver Eagles, 1 oz silver rounds, or a 100 oz silver bar

Stick to standard 1 oz sizes initially — they carry moderate premiums and are highly liquid. Compare bars vs. coins in more detail.

Step 7: Place Your Order

Most reputable online dealers accept payment by:

• Check or money order: Typically the lowest price (dealers often offer a 3%–4% discount vs. credit card).
• Bank wire: Fast settlement; often same discount as check.
• Credit card: Convenient but usually 3%–4% higher price to cover processing fees.
• Cryptocurrency: Accepted by some dealers; check for discounts similar to checks.

Step 8: Plan Your Storage Before Delivery

Decide where your metals will live before they arrive:

• Home safe: Get a quality, bolted-down safe rated for fire and burglary. Don't advertise your holdings.
• Bank safe deposit box: Inexpensive, but metals aren't insured and boxes can be inaccessible during banking crises.
• Dealer vault / third-party storage: Most secure option for larger holdings. Look for segregated storage with full insurance.

Step 9: Inspect Your Metals on Arrival

When your metals arrive, verify the weight, purity markings, and packaging match your order. Keep your receipts and invoices for tax records — the IRS requires reporting of capital gains when you sell.

Step 10: Build Your Position Over Time

Consider dollar-cost averaging — buying a fixed dollar amount at regular intervals rather than a lump sum. This reduces the risk of buying at a peak and smooths out your average cost over time. Many investors set a monthly or quarterly budget for precious metals purchases and stick to it regardless of short-term price swings.