Precious Metals Buying Checklist: 10 Steps Before Your First Purchase

A precious metals buying checklist transforms what can feel like an overwhelming process into a clear, step-by-step plan. Whether you are purchasing your first ounce of gold or adding silver to an existing portfolio, following a structured checklist ensures you make informed decisions, avoid costly mistakes and get the best value for your investment. This guide walks through ten essential steps every buyer should complete before placing an order. Bookmark this page and return to it each time you are ready to make a new purchase from MintBuilder's gold selection or silver selection.

Step 1: Define Your Investment Goals

Before spending a single dollar, clarify why you want to own precious metals. Your goals shape every subsequent decision—which metal to buy, what format, how much and where to store it. Common goals include:

• Wealth preservation – Protecting purchasing power against inflation and currency debasement.
• Portfolio diversification – Reducing correlation with stocks, bonds and real estate.
• Crisis insurance – Holding tangible assets that retain value during financial or geopolitical turmoil.
• Retirement savings – Building a position within a self-directed precious metals IRA for tax-advantaged growth.
• Generational wealth transfer – Passing physical assets to heirs outside the traditional financial system.

Write your goals down. Revisit them whenever you feel the urge to make an impulsive purchase or panic-sell during a price dip.

Step 2: Set a Realistic Budget

Determine how much capital you can allocate to precious metals without compromising your emergency fund, debt obligations or other investment commitments. Financial advisors commonly suggest allocating 5 to 15 percent of a total portfolio to hard assets, but the right number depends on your personal situation.

Key budget considerations:

• Precious metals are a long-term hold. Only invest money you will not need in the short term.
• Factor in premiums over spot price, shipping costs and any applicable sales tax.
• If budget is tight, dollar-cost averaging—buying a set amount at regular intervals—is an effective strategy.

Step 3: Choose Your Metal

Gold and silver are the two most popular choices, each with distinct characteristics:

• Gold – Higher value density, lower volatility, universally recognized. Ideal for large-value wealth preservation. Check the live spot prices page for the current gold price.
• Silver – Lower entry cost, higher volatility, strong industrial demand. Ideal for building positions on a budget.

Many investors hold both. Your first ounce can be either metal—the important thing is getting started.

Step 4: Choose Your Format — Coins, Bars or Rounds

The format you choose affects premiums, liquidity, storage and recognizability:

• Sovereign coins (American Eagles, Canadian Maple Leafs, etc.) – Carry government backing, high recognizability and strong resale markets. Premiums are moderate to high.
• Bars – Available in sizes from 1 gram to 100 oz. Larger bars carry lower per-ounce premiums, maximizing your metal per dollar.
• Rounds – Privately minted, coin-shaped products without legal tender status. Typically the lowest premiums available.

Our detailed coins vs. bars comparison will help you decide which format best fits your goals.

Step 5: Research Premiums and Pricing

The price you pay for physical precious metals consists of two components: the spot price (the current market price for raw metal) and the premium (the markup above spot charged by the mint, distributor and dealer). Understanding premiums is critical to getting fair value.

• Compare premiums across different products. Generic silver rounds carry lower premiums than sovereign coins.
• Compare premiums across dealers for the same product.
• Be wary of extremely low premiums (could indicate counterfeit risk) or extremely high premiums (could indicate overpriced numismatic or collectible products).

Learn the full mechanics of spot pricing in our spot price vs. premium guide.

Step 6: Verify Your Dealer

Choosing a reputable dealer is one of the most important steps in the buying process. Verify the following before placing an order:

• Business history – How long has the dealer been operating? Look for at least several years of track record.
• Customer reviews – Check independent review platforms, not just testimonials on the dealer's own site.
• Industry affiliations – Memberships in organizations like the American Numismatic Association or Industry Council for Tangible Assets suggest professional standards.
• Transparent pricing – The dealer should clearly display spot price, premium and total cost for every product.
• Clear policies – Shipping, insurance, returns and buyback policies should be easy to find and understand.

Our guide on avoiding precious metals scams details the red flags that signal an untrustworthy dealer.

Step 7: Check IRA Eligibility (If Applicable)

If you plan to hold metals in a self-directed IRA, verify that the products you intend to buy meet IRS purity requirements:

• Gold must be .995 fine or higher (exception: American Gold Eagles at .9167).
• Silver must be .999 fine or higher.
• Platinum and palladium must be .9995 fine or higher.

Not every popular product qualifies. Pre-1965 US silver coins, Krugerrands (gold), and sterling silver items are all ineligible. Confirm eligibility before purchasing to avoid costly surprises. Read our how to buy gold guide for additional context on IRA-eligible purchases.

Step 8: Plan Your Storage

Never buy precious metals without a storage plan already in place. Your options include:

• Home safe – Immediate access, one-time cost, but requires insurance and security measures.
• Bank safe deposit box – Moderate cost with bank-level security, but limited hours and no FDIC coverage on contents.
• Third-party depository – Highest security, full insurance, IRA-compliant. Required for IRA-held metals.

Our comprehensive storage options comparison will help you evaluate costs, security and convenience for each method.

Step 9: Place Your Order

With your research complete, placing an order is straightforward:

• Select your products and quantities.
• Review the total cost including premiums, shipping and any applicable tax.
• Choose a secure payment method. Many dealers offer discounts for bank wire or ACH transfers over credit card payments.
• Confirm shipping address and ensure someone will be available to sign for the delivery if required.
• Place the order and save your confirmation email and order number.

Most reputable dealers lock in your price at the time of order, so the spot price movement between ordering and delivery does not affect your cost.

Step 10: Document Your Purchase

Good record-keeping protects you at tax time and simplifies insurance claims or future sales:

• Save receipts and invoices showing the purchase date, product description, quantity, purity, weight and total cost.
• Photograph each product upon receipt, capturing any serial numbers, mint marks and packaging.
• Record where each item is stored.
• Store copies of your documentation separately from the metals themselves—consider an encrypted cloud backup or a second physical location.

Thorough documentation also makes it easier to calculate capital gains or losses if you eventually sell, and it provides proof of ownership for insurance purposes.

Quick-Reference Checklist

1. Define investment goals
2. Set a realistic budget
3. Choose your metal (gold, silver or both)
4. Choose your format (coins, bars, rounds)
5. Research premiums and compare pricing
6. Verify dealer reputation and policies
7. Check IRA eligibility if applicable
8. Plan secure storage
9. Place your order
10. Document your purchase thoroughly

Frequently Asked Questions

How much money do I need to start buying precious metals?

There is no fixed minimum. You can start with a single one-ounce silver round for a modest amount or a fractional gold coin. The important thing is to begin within your budget and build over time.

Should I buy gold or silver first?

It depends on your budget and goals. Silver has a lower entry point, making it accessible for most beginners. Gold offers higher value density and lower volatility. Many investors start with silver and add gold as their portfolio grows. See our first ounce guide for detailed comparisons.

What is the best way to verify a precious metals dealer?

Check independent reviews, verify business history and industry memberships, confirm transparent pricing and clear policies, and look for established track records. Our scams guide provides a comprehensive list of red flags.

Do I pay sales tax on gold and silver?

It depends on your state. Many US states exempt investment-grade gold and silver from sales tax, while others tax some or all precious metals purchases. Check your state's current rules before ordering.

How do I know if a product is IRA-eligible?

The IRS requires specific minimum purity levels: .995 for gold, .999 for silver, and .9995 for platinum and palladium. Products must also be produced by an approved mint or refinery. Your IRA custodian can confirm eligibility for specific products.

What happens if spot prices drop after I buy?

Short-term price fluctuations are normal. Precious metals are a long-term investment. If you follow a dollar-cost averaging strategy, buying at regular intervals, dips actually lower your average cost per ounce over time.

Is it safe to have precious metals shipped to my home?

Yes, when ordered from a reputable dealer. Packages are shipped via insured carriers in discreet, unmarked packaging. Most dealers require signature confirmation for delivery.

Can I buy precious metals inside my existing IRA?

Most traditional brokerage IRAs do not support physical metals. You need a self-directed IRA with a custodian that specializes in alternative assets. The process typically involves opening a new self-directed IRA and rolling over funds from your existing account.

Ready to Make Your First Purchase?

You now have a complete, repeatable checklist for buying precious metals the right way. Print it, save it and use it every time you add to your holdings. When you are ready to take the next step, explore MintBuilder's gold products and silver products, and shop with the confidence that comes from thorough preparation.