Voted #1 Gold Buyer in Melbourne
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1800 618 805
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Fri 9:30am - 5:00pm
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Level 14, Off 1411
227 Collins Street
Melbourne, VIC 3000
we are in Business Since 1948
We have Free Car Parking
we are in Business Since 1948
Phone Icon
1800 618 805
Clock Icon
Mon - Fri: 9:30am - 5:30pm
Saturday - Sunday Closed
Location Icon
Level 14, Off 1411
227 Collins Street
Melbourne, VIC 3000


How to Start Investing in Gold and Silver

Take a look at the stock market, and it’s easy to see how volatile it can be. It’s a rule of thumb to use the stock market to your advantage, but you still want to diversify your portfolio and decrease your risk. Real estate is a good investment, but you need a lot of money to get started. For small-time investors and those just starting on their investment journey, buying gold and silver bullion is an excellent way to hedge against stock market volatility. It doesn’t matter what amount of gold you can afford to buy. Starting small with a gold or silver bullion coin is enough to get your feet wet and improve the health of your portfolio.

Why do people invest in gold and silver coins or bullion?

From a historical perspective, gold and silver were always considered real money. Today, central banks issue paper money that is printed in line with the nation’s monetary policy. The Reserve Bank of Australia and the Federal Reserve in the U.S. are both examples of central banks that issue paper currency and design monetary policy. Unfortunately, paper money in today’s world is issued with fractional reserve banking. This creates volatility in the market and also can create instability with the worth of paper currency.

Investors see precious metals like gold as a way to protect their wealth from these instabilities. While paper money can be printed and then taken out of circulation, gold coins and silver can’t. These physical forms of money are subject to stricter supply controls. Gold miners take time to pull the metal from the earth, and gold and silver coins aren’t something a central bank can print and inflate or deflate until they are worthless.

What are some ways to get started building a bullion or coin collection?

The economic law of supply and demand will impact the precious metals market and the price of silver and gold. It’s best to buy when gold prices are low, and sell the metal once prices go up, which they always do over the long term. Generally, when interest rates fall, it’s an excellent time to buy gold or silver.

If you want to buy a gold coin, it’s essential to know that gold bullion coins and numismatic coins are different. Numismatic coins are collectibles, while gold bullion coins are minted by places like the Perth Mint and are considered legal tender and investment pieces. If you’re someone who likes the idea of holding gold as a physical asset, you can buy gold and silver coins and bullion bars.

You don’t have to hold physical gold to get started on your investment journey. It’s also possible to invest in exchange-traded funds ETFs or gold ETFs. These commodity ETFs are traded like stocks, but only hold one asset - gold. The fund holds gold derivative contracts that are backed by physical gold. You can also purchase gold certificates and have the, held in a safe deposit box.

Ready to get started on your gold investment journey? Stop into our secure location at Gold Buyers Melbourne today. We buy and sell gold bullion, jewellery, scrap, silver and diamonds if you need a quick cash infusion.