Step by step
Your path from first question to first purchase
Work through the steps in order, or jump to the one you need. Each card links to a fuller explanation further down this page.
Step 1
Why people own metals, and the trade-offs
What metals can and can't do for you, before you spend anything.
Step 2
Gold vs silver vs platinum vs palladium vs rare coins
Five ways into the market, each with a different personality.
Step 3
Understand spot price and premiums
The headline price isn't what you pay. Learn the gap before you shop.
Step 4
Troy ounces and purity
Know exactly how much metal you're getting for your money.
Step 5
Coins vs bars vs ETFs
Physical metal in your hand, or exposure to the price in a brokerage account.
Step 6
Buying safely
Where to buy, how to compare prices and how to avoid fakes and upsells.
Step 7
Storing your metal
Home safe, bank box or vault: each has a cost and a catch.
Step 8
Selling when the time comes
Know who will buy it back, and at what price, before you need to sell.
Step 1
Why people own metals, and the trade-offs
People buy precious metals for a few different reasons, and it helps to know which one is yours, because it shapes everything else: which metal, which product and how much.
A long-term store of value
Over very long periods gold in particular has tended to hold purchasing power, though never in a straight line.
Diversification
Metals have often moved differently from stocks and bonds, so some people hold a small share to balance a portfolio.
Something outside the system
A coin in your hand isn't anyone's promise to pay, which appeals to people worried about banks or currencies.
Industrial demand
Silver, platinum and palladium are also industrial metals, so their prices are tied to factories and the economy as well as investors.
The trade-offs: metals pay no interest or dividends, cost money to store and insure, and can fall for years at a time. You pay more than the market price when you buy and receive less when you sell. That's why many people who own metals keep them to a modest share of their savings rather than putting everything in.
Step 2
Gold vs silver vs platinum vs palladium vs rare coins
Most beginners start with gold or silver, because they're the easiest to buy and sell. Platinum and palladium are smaller, more industrial markets, and rare coins are a collector's market where the metal is only part of the value.
| Metal | Best known for | The trade-off |
|---|---|---|
| Gold | The classic store of value, held by central banks and investors worldwide | Pays no income; a single coin is a large purchase |
| Silver | Affordable entry point with both investment and industrial demand | Bigger price swings than gold, bulky to store, higher premiums per ounce |
| Platinum | Mined in smaller amounts than gold, used heavily in car exhausts and industry | Small market, wider dealer spreads, fewer products to choose from |
| Palladium | A mostly industrial metal, used mainly in catalytic converters for gasoline cars | Very volatile and concentrated supply; few bullion products |
| Rare coins | Collectible coins valued for rarity, condition and history | Price depends on grading and collector demand, not just metal content |
Each metal has its own guide covering what moves its price, popular coins and bars, and what to watch out for.
Step 4
Troy ounces and purity
Precious metals are weighed in troy ounces. One troy ounce is about 31.1 grams, roughly 10% heavier than the ounce used for food. When a coin says “1 oz”, it means a troy ounce.
Purity is shown as fineness (such as .999, meaning 99.9% pure) or, for gold, in karats, where 24k is essentially pure and 22k is about 91.67%. Some popular bullion coins are 22k so they resist scratches, and are made slightly heavier so they still contain a full ounce of gold. What matters is the pure metal content, not the total weight.
Read more: troy ounces explained and gold purity, karats and fineness. The melt value calculator below turns weight and purity into a value at today's spot price.
Try it
Melt value calculator
Pre-filled with the latest price. Edit it to try another price.
Melt value
$4,071.69
0.9999 troy oz of pure gold
Melt value is the metal content at spot. Dealers sell above it (the premium) and usually buy below it. Rare coins can be worth far more than melt.
Step 5
Coins vs bars vs ETFs
There are several ways to own metals, and they differ in cost, convenience and what you actually hold.
Bullion coins
Government-minted coins with a guaranteed metal content. Widely recognised and easy to resell, but usually higher premiums than bars.
Bars
From a gram up to a kilo and beyond. Larger bars generally carry lower premiums per ounce, but are harder to sell in part. Stick to brands dealers recognise.
Exchange-traded funds (ETFs)
Shares in a fund that holds metal in a vault. Easy to buy and sell in a brokerage account, with an annual fee and no metal in your hands.
Mining stocks
Shares in companies that dig metal out of the ground. They often move more than the metal itself and carry company risks too.
None of these is “best” for everyone. Physical metal suits people who want to hold the real thing and accept storage costs; funds suit people who mainly want price exposure without handling anything.
Step 6
Buying safely
Buy from established dealers with a clear track record, published buyback prices and reviews you can check independently. Compare the total cost per ounce, including shipping, insurance and card or payment fees, rather than the sticker price of a single item.
Be cautious with high-pressure phone sales, “limited edition” coins sold as investments at big markups, and online marketplace listings priced well below spot: counterfeits are real. Starting small while you learn costs little.
Our step-by-step guide covers how to buy precious metals.
Step 7
Storing your metal
Physical metal needs somewhere safe to live. A home safe is convenient but needs to be hidden, bolted down and insured; ordinary home insurance may not cover bullion. A bank safe-deposit box is secure, but contents usually aren't insured by the bank and access is limited to opening hours. Professional vaults offer insured storage for an ongoing fee.
Handle coins by the edges, keep them in their original capsules or tubes, and keep receipts and records of what you own. They help when you sell and with taxes.
Read more on how to store precious metals.
Step 8
Selling when the time comes
Dealers buy at their bid price, so check buyback prices from several of them before selling, the same way you compared prices when buying. Well-known coins and bars from recognised mints are usually the easiest to sell; unusual items may need testing or fetch less.
Selling can have tax consequences. In the US, for example, physical precious metals are generally treated as collectibles, which can mean a different tax rate from stocks. Rules vary by country, so check with a tax professional.
Our guide explains how to sell precious metals.
Watch out for
Common beginner mistakes
- Ignoring the premium. Paying well above spot means the price has to rise a long way before you break even. Compare the total cost per ounce.
- Buying “collectible” coins as an investment. Commemorative and limited-edition pieces are often sold at large markups over their metal content and are hard to resell at that price.
- Putting too much in at once. Metals can fall for years. Many people keep them to a modest share of their savings and build up slowly.
- Falling for deals that are too good to be true. Coins or bars offered well below spot, especially online, are a common route for counterfeits.
- Forgetting storage and insurance. Keeping metal at home without a safe, a plan or insurance cover is a real risk.
- Not planning the exit. Know who will buy your metal back, at what price, and what records you'll need, before you buy.
- Treating predictions as facts. Nobody can reliably forecast metal prices, however confident they sound.
Good to know
Frequently asked questions
How much should a beginner put into precious metals?
We can't answer that for you: it depends on your finances, goals and other savings. Many people who own metals keep them to a modest share of their savings, and starting small while you learn how buying and selling work keeps mistakes cheap. A licensed financial adviser can help with your own situation.
Should I start with gold or silver?
Both are common starting points. Gold packs a lot of value into a small coin and tends to move less sharply. Silver lets you start with a smaller amount but swings more in price, takes up more space and usually carries higher premiums per ounce.
Why can't I buy metal at the spot price?
Spot is the wholesale price for large amounts. Coins and bars cost money to mint, ship and sell, so every retail product carries a premium above spot. Smaller and more decorative items usually carry bigger premiums.
Is a precious metals ETF the same as owning metal?
Not quite. A physically backed ETF holds metal in a vault and its price tracks the metal, but you own shares in the fund, not specific coins or bars. It's easier to buy and sell but charges an annual fee and you can't take delivery of the metal.
Is this page financial advice?
No. It's general education about how precious metals work, written for a general audience. It doesn't know your circumstances, so check details with a dealer, tax professional or licensed adviser before making decisions.
This guide is for general education only and isn’t financial, tax or legal advice. Facts about markets and products change, so check current details with a dealer or a licensed adviser before making decisions.