Precious Metals Guide

A comprehensive and in-depth guide for investors looking to buy physical gold, silver, platinum, and palladium.

 

Table of contents

An introduction to precious metals
Gold: the leading precious metal for investment
Silver: an underestimated precious metal?
Platinum: a new and sought-after metal
Palladium: a rare metal to follow
Other precious metals

Precious Metals Guide

Buying gold, silver, platinum, or palladium for the first time can sometimes seem intimidating. But in reality, knowing a few basics is all it takes to start adding physical precious metals to your investment portfolio or collection with confidence.
BULLIONCRYPT offers to help you better understand and prepare your precious metal purchase.

An introduction to precious metals

Precious metals have long captivated and fascinated mankind. Since their discovery, they have been synonymous with wealth and power and are used today for various purposes: industry, high technology, medicine, investment, jewelry, etc. Their unique characteristics and properties have made them play an important role in our history, from the past’s religious traditions to their more modern uses.

Should you buy precious metals?

Physical precious metals are a special category of investment. They are both rare and globalized: each metal’s unique price simplifies their worldwide exchange, and their rarity has turned them into highly coveted products. But physical precious metals, unlike other forms of investment, also have an intrinsic value. In other words, their status over the centuries, their ever-renewed usefulness, and their durability have made them physical products of great value. Therefore, it is not surprising that they are still appreciated by most investors as a historical store of value, both for the transmission of wealth (inheritance, savings, etc.) and its preservation. Their physical and tangible characteristics offer reassuring guarantees for precious metal owners. Precious metals can thus be a coveted asset to diversify any investment portfolio. In particular, they can be used to offer protection against the volatility sometimes encountered by other forms of assets. For example, they tend to have a very low correlation with equities and capital. While the price of such assets can rise and fall according to short-term economic trends, historically precious metal prices tend to remain more stable.

Are precious metals stable over the long term?

Their reputation as a "safe haven" and a "store of value" plays an important role in the stability appeal of precious metal prices. But gold, silver, platinum, and palladium are not only investment products or stores of value; they are also raw materials and consumer goods.

Indeed, beyond their commercial use in jewelry, there is a large and growing need for precious metals across many industries, from electronics and high technology to medicine, the automotive industry, and even space exploration. These commercial and industrial needs support the demand and supply of precious metals and therefore contribute to maintaining their price stability.

Thus, the purchase of precious metals tends to be a historically stable investment, due in particular to their numerous properties allowing for a variety of uses. Although their prices often move more slowly than other types of investments, they tend to increase over the medium and long term.

How does the price of precious metals work?

The prices of precious metals are the same throughout the world. They are most commonly expressed in U.S. dollars but can also be seen in other currencies (Euro, Swiss Franc, Pound Sterling, etc.). The price of physical precious metals is called spot price, this is the price as it appears on the market, its most common unit of measurement is the troy ounce, which is a historical unit of 31.1 grams of precious metals.

Precious metals have a global but centralized market, their true price is determined by the LBMA (London Bullion Market Association) and the LPPM (London Platinum and Palladium Market) in London. 

How often are precious metals prices set?

  • The LBMA gold price is determined twice a day on business days at 10:30 AM and 3:00 PM (London time) in US dollars.
  • The LBMA silver price is determined once a day on business days at 12:00 PM (London time) in US dollars.
  • The LBMA platinum and the LBMA palladium prices are fixed by the LPPM (London Platinum and Palladium Market) and the LME (London Metal Exchange), they are determined twice a day on business days at 9:45 AM and 2:00 PM (London time) in US dollars.

Breaking down the price of a precious metal product

The price of a precious metal product is actually made up of three elements: The price of the metal: This is another name for the spot price, which is the price on the market at that moment. The premium: This includes the product’s operating and production costs (production, storage, craftsmanship, etc.), as well as the reseller’s margin. The VAT: Switzerland as well as most European countries do not apply VAT on gold. Other precious metals usually are not exempt of VAT. The VAT rate will depend on each country. Metals sur as silver, platinum and palladium are charged a 7.7% VAT rate in Switzerland (the lowest VAT rate in Europe).

Precious Metals Guide

A comprehensive and in-depth guide for investors looking to buy physical gold, silver, platinum, and palladium.

 

Table of contents

An introduction to precious metals
Gold: the leading precious metal for investment
Silver: an underestimated precious metal?
Platinum: a new and sought-after metal
Palladium: a rare metal to follow
Other precious metals

Precious Metals Guide

Buying gold, silver, platinum, or palladium for the first time can sometimes seem intimidating. But in reality, knowing a few basics is all it takes to start adding physical precious metals to your investment portfolio or collection with confidence.
BULLIONCRYPT offers to help you better understand and prepare your precious metal purchase.

An introduction to precious metals

Precious metals have long captivated and fascinated mankind. Since their discovery, they have been synonymous with wealth and power and are used today for various purposes: industry, high technology, medicine, investment, jewelry, etc. Their unique characteristics and properties have made them play an important role in our history, from the past’s religious traditions to their more modern uses.

Should you buy precious metals?

Physical precious metals are a special category of investment. They are both rare and globalized: each metal’s unique price simplifies their worldwide exchange, and their rarity has turned them into highly coveted products. But physical precious metals, unlike other forms of investment, also have an intrinsic value. In other words, their status over the centuries, their ever-renewed usefulness, and their durability have made them physical products of great value. Therefore, it is not surprising that they are still appreciated by most investors as a historical store of value, both for the transmission of wealth (inheritance, savings, etc.) and its preservation. Their physical and tangible characteristics offer reassuring guarantees for precious metal owners. Precious metals can thus be a coveted asset to diversify any investment portfolio. In particular, they can be used to offer protection against the volatility sometimes encountered by other forms of assets. For example, they tend to have a very low correlation with equities and capital. While the price of such assets can rise and fall according to short-term economic trends, historically precious metal prices tend to remain more stable.

Are precious metals stable over the long term?

Their reputation as a "safe haven" and a "store of value" plays an important role in the stability appeal of precious metal prices. But gold, silver, platinum, and palladium are not only investment products or stores of value; they are also raw materials and consumer goods.

Indeed, beyond their commercial use in jewelry, there is a large and growing need for precious metals across many industries, from electronics and high technology to medicine, the automotive industry, and even space exploration. These commercial and industrial needs support the demand and supply of precious metals and therefore contribute to maintaining their price stability.

Thus, the purchase of precious metals tends to be a historically stable investment, due in particular to their numerous properties allowing for a variety of uses. Although their prices often move more slowly than other types of investments, they tend to increase over the medium and long term.

How does the price of precious metals work?

The prices of precious metals are the same throughout the world. They are most commonly expressed in U.S. dollars but can also be seen in other currencies (Euro, Swiss Franc, Pound Sterling, etc.). The price of physical precious metals is called spot price, this is the price as it appears on the market, its most common unit of measurement is the troy ounce, which is a historical unit of 31.1 grams of precious metals.

Precious metals have a global but centralized market, their true price is determined by the LBMA (London Bullion Market Association) and the LPPM (London Platinum and Palladium Market) in London. 

How often are precious metals prices set?

  • The LBMA gold price is determined twice a day on business days at 10:30 AM and 3:00 PM (London time) in US dollars.
  • The LBMA silver price is determined once a day on business days at 12:00 PM (London time) in US dollars.
  • The LBMA platinum and the LBMA palladium prices are fixed by the LPPM (London Platinum and Palladium Market) and the LME (London Metal Exchange), they are determined twice a day on business days at 9:45 AM and 2:00 PM (London time) in US dollars.

Breaking down the price of a precious metal product

The price of a precious metal product is actually made up of three elements: The price of the metal: This is another name for the spot price, which is the price on the market at that moment. The premium: This includes the product’s operating and production costs (production, storage, craftsmanship, etc.), as well as the reseller’s margin. The VAT: Switzerland as well as most European countries do not apply VAT on gold. Other precious metals usually are not exempt of VAT. The VAT rate will depend on each country. Metals sur as silver, platinum and palladium are charged a 7.7% VAT rate in Switzerland (the lowest VAT rate in Europe).