Buy gold? That’s how it works. Simply explained step by step

Oh, how it sparkles, how it shines, oh, how prices rise! Anyone who bought precious metals at the beginning of the year can be happy today. Platinum plus 63 percent, silver plus 51 percent, gold plus 55 percent – with a new all-time high of more than $4,000 per ounce.

Anyone who hasn’t done this may now be annoyed and also want to invest. But where and how is the best way to buy precious metals? And what should you pay attention to?

Precious metals are special metals that are very durable and do not rust or break when they come into contact with air or water. The most famous precious metals are Gold, Silver, platinum and palladium. They are often used for jewelry, coins or as an investment because they retain their value for a long time.

Precious metals are also used in electronic devices such as computers and smartphones because they conduct electricity very well and are long-lasting. In medicine, for example, they are found in dental fillings, devices or treatments, and in industry they help to reduce exhaust gas emissions, for example in car catalytic converters.

In addition to gold, silver, platinum and palladium, there are other precious metals. These include Rhodium, Ruthenium, osmium and iridium. Like the well-known precious metals, these metals are particularly resistant to external influences and are often used in technology, industry and for special applications.

If you want to buy precious metals physically, you have two options:

National providers such as Degussa and Pro Aurum have branches in major German cities. The advantage of buying gold there is that you are buying directly from a trustworthy dealer in one of the branches. The disadvantage: you usually have to pay more in branches than online.

Both on site and online, dealers offer real precious metals at the current market price. Nevertheless, buyers should beware of attempted fraud.

You should therefore pay attention to the following points:

Dealers should also have been present on the market for several years and be a member of a recognized professional association. Especially when buying online, you should also check the shipping costs and shipping conditions as well as insurance options. Precious metals should also be well protected and sent as inconspicuously as possible.

Typical precious metals for investments are gold, silver, platinum and palladium. Gold is considered the classic “safe haven” because it has a fairly stable value. Many investors invest in gold because it has a long history as a store of value, is easy to trade, and protects against inflation.

Silver is cheaper than gold and offers good future prospects, as it is used in many industries. However, its price fluctuates more and it is more difficult to store as it can tarnish.

platinum and palladium are rarer and are in high demand from industry, especially the automotive sector. Both precious metals offer potentially high returns, but sometimes fluctuate greatly in price.

The decision ultimately depends on your own willingness to take risks and your investment goals: Gold is good for security and value stability, silver is suitable for a cheap entry and opportunities for profits, and platinum and palladium are for risk-taking investors who are looking for growth.

Precious metals can be purchased physically in two main forms: as Ingots and as Coins. Bars are usually cheaper because the production costs are lower and are particularly suitable for larger amounts. Coins are recognized worldwide, easy to trade and often more practical for smaller investments or resale. Well-known investment coins such as Krugerrand or Maple Leaf are recommended for beginners.

In addition to your own storage at home or in bank safe deposit boxes, there is the option of having precious metals stored by dealers in safes or in special high-security warehouses. In rare cases there are also medals, although these are mainly of interest to collectors – and are not considered a classic form of investment.