The Right Tools for These Depressed Markets

To trade Crypto coin calls or puts, Gate.io is a great exchange offering 5x long and short positions along with many other trading choices. Of course, it’s FREE to sign up for a trading account there. Wondering what to do in falling Crypto markets? Looking for smart strategies to make the best of a pretty bad situation? Then read this post and discover pro trader methods! In this article, you will discover the tools you need for the type of free-falling markets we seem to be witnessing in Crypto coins for multi-months now.

Tools to Apply to Any Market Situation

Find the right tools for any market, good or very bad ones! In this article, you will be introduced to and find some explanations about the tools and strategies you need in order to prepare and turn big profits on the back of the breakdown we’ve been experiencing in bitcoins across the board. No matter if it gets worse, or how nasty it’s going to be specifically, here’s how you can turn the tables on markets “doing this to you” right now! There are “Tools of the Trader” that are meant to be used specifically in markets like this! It’s not simply “buy low, sell high” or “buy now and wait for better times” but something more refined (and much more effective).

Call and Put Options for Crypto Markets

To do the same on Bitcoin as an underlying asset, you can use Crypto Long-Instruments and Short-Instruments. These are similar to Calls and Puts as we know them in other markets. Here they are structured as “perpetual leveraged positions” in a Crypto asset, i e a specific coin such as Bitcoin, Ether, Litecoin, Dogecoin, and many more. To see what this looks likein real life, use this chart and link to register for a trading account on Gate.io. Again, tt’s FREE to sign up.

If you like this post and want to stay in the loop on available “Tools of the Trader” and strategies, then please subscribe on this website in order to be notified of news and updates like this one WHEN the markets change and WHEN they’re needed.

Disclaimer: This article is for general informational purposes only, as are all articles and posts on this website. None of the information in this or our other publications or articles on this site is financial advice. Content authors do not even know your individual situation and, therefore, cannot and do not offer such financial advice here.

Opinions expressed in these articles and posts are observations, thoughts, and analyses of the article or post author and opinions derived from them. Do not rely on them or any other content of our videos for your own trades or investments; do your own due diligence and/or seek any necessary financial advice from licensed professionals before investing your money.

Disclosure notice: Links in the description above are affiliate links; if you click them for signing up, I will receive a commission — and YOU RECEIVE rebates on trading fees they offer on Gate.io for referred customers, depending on the individual offer chosen.

Is Confiscation of Gold a Real Risk?

No. Not even in the U. S., or maybe particularly not in the U. S. While there may be some risk of government interference, it is not very likely to happen. Here is why: unlike in the 1930s, the U. S. dollar has become the world’s “reserve currency” today, with more dollars in circulation overseas than in the U. S. itself. Therefore, it would be extremely foolish for the U. S. government to “confiscate” gold as this might immediately raise suspicions worldwide about something being even more seriously wrong with the U. S. dollar than is generally accepted today and would very likely collapse the U. S. dollar within hours.

Most other ways of interference with the gold market would be as unlikely for the same reason.

Spreading scary news about “government confiscation” of gold is one ingredient of the better known gold scams and are normally used to get people to buying things they should not buy for the true reasons they set out on their original buying plan (like numismatic coins instead of bullion, see Can I Earn a higher Profit with Numismatics…, above). Successful investors develop a plan and stick with it. Do develop your plan and find out yourself how high the probability of gold “confiscation” really is. Once done, stick with your plan and be not fooled by some ignorant call center agent.

How Do I Buy and Sell Physical Gold and Silver?
Do I Have to Pay Sales Tax (or VAT or Similar) on Precious Metals?
Should I store my precious metals locally or overseas?
How Much Should I Pay for Physical Bullion?
Can I Earn a Higher Profit With Numismatic Coins?
What Is a Reasonable Premium Over Spot?
Should I Buy Bullion Bars or Bullion Coins?
Should I Buy Bullion Online?
Should I Buy Bullion Over the Phone?
Should I Buy Bullion Using eBay or Amazon Marketplace?
Are There Any Reporting Requirements for Gold or Silver?
Should I Buy Vaulted Allocated Gold or Silver?

Can I Earn a Higher Profit With Numismatic Coins?

It depends. If you are really knowledgeable about all the details and intricacies of numismatic coins, know all the ins and outs of particular coins or are an expert at spotting exotic coins, you certainly could make a killing in numismatic coins. This may be similar to owning a Strativari violin, a Van Gogh painting or a collection of rare wines. For the average investor though, numismatic coins may not be as suitable. What’s more, numismatic coins do not offer much in the way of protection against the risks that precious metals investments are supposed to alleviate (see section Should I store…, above). Other than bullion coins and bullion bars which are commodities having a price consisting of intrinsic value and usually almost nothing else, numismatic coin prices depend on a wide range of factors of which precious metals content is only a lesser part. Numismatic coins are graded and primarily depend on condition, but at the same time collector demand is a major ingredient in numismatic coin prices. If you invest in physical gold and silver bullion and bars as a hedge against any of the risks mentioned earlier (see Currency Risk, Market, Risk, Systemic Risk in the Should I Store… section, above), then you would not want to depend on normal and”sunny” market conditions all around to be able and sell your valuables. You would rather want to have something of raw material value that can be carried around without an air-conditioned container or a cushioned box and can easily be sold in the streets (or bartered, if needed).

For numismatic coins, the premiums charged -– not only over precious metals content, which is due to those other factors mentioned, but also over the “going rate” of comparable coins elsewhere – can, and do, wildly fluctuate with dealers being the ones usually making a killing in the process. Just watch a few commercials and the “incentives” to buy which include either ridiculous “specials” (percentage-wise) or “great” affiliate and multi-level marketing “opportunities”. Both were economically impossible, were it not for the outrageous markups numismatics dealers tend to charge. Also be aware of a number of “bullion dealerships” that turn out to be high-pressure selling outfits talking potential bullion buyers into numismatics because of the higher margin they can make on numismatics. (Many of these uninformed buyers who fell for the numismatics trick are still waiting to see any significant profits in their “investments”, even at today’s dramatically increased intrinsic values and high precious metals prices; please also read the Beware of the Pitfalls section.

How Do I Buy and Sell Physical Gold and Silver?
Do I Have to Pay Sales Tax (or VAT or Similar) on Precious Metals?
Should I store my precious metals locally or overseas?
How Much Should I Pay for Physical Bullion?
What Is a Reasonable Premium Over Spot?
Should I Buy Bullion Bars or Bullion Coins?
Should I Buy Bullion Online?
Should I Buy Bullion Over the Phone?
Should I Buy Bullion Using eBay or Amazon Marketplace?
Is Confiscation of Gold a Real Risk?
Are There Any Reporting Requirements for Gold or Silver?
Should I Buy Vaulted Allocated Gold or Silver?

What’s the Difference Between Bullion and Numismatics?

The term Bullion means precious metals in their commodity or bulk form, cast as ingots (or bars) in various sizes or minted into coins.

Bullion coins issued by countries, such as the South African Krugerrand, the Canadian Maple Leaf or the American Eagle, are nominally legal tender with a face value although their bullion value is much greater. Bullion value is determined by mass and purity.

The fact that bullion coins have a face value also has some significant tax implications in many jurisdictions (these are discussed separately).

Both bullion bars and bullion coins are commodity items and are valued for their very substance rather than grading, coinage year, collector appreciation or similar.

 

Numismatics refers to collectible coins, uncirculated or circulated in various conditions. These coins are collected for their rarity value; they may have bullion value but their price is based on numismatic value. Numismatic value is determined by coin scarcity and condition, the latter indicated by numerical grades ranging from 60 for a coin with scratches or a weak strike to 70 for a coin in perfect condition. The abbreviation “MS” preceeding the numerical grade stands for mint state. A numismatic coin in perfect condition would have a rating of MS-70.

While numismatic coins can have a significantly higher value per mass and, given the right circumstances, may offer a “more compressed” form of value, their price is largely determined by appreciation, taste or other subjective factors. These may vary, particularly in uncertain economic times when coin collecting may turn out to be the least of people’s problems and therefore rank low on the price scale. The nature of bullion as a pure commodity, on the other hand, addresses not just a hobby but basic economic needs of exchanging value, barter or even affecting outright payment and is a far better and more secure way of storing value reliably.

What Is a Reasonable Premium Over Spot?

During “normal” times, bullion coins and bullion bars sell at low premiums over spot. These premiums reflect the cost of refinery, minting, assaying, storage, insurance, distribution and similar production costs as well as a dealer markup that covers the bullion dealerships cost of operation and profit. If there are any taxes due on your purchase or if bullion is not bought locally over the counter, any taxes, shipping cost and insurance will be added. Barring any market irregularities, markups of 4% to 12% are the most common, and it is usually recommended to look for dealers that do not significantly exceed a premium of 8% over current spot price. If there is any significant uncertainty going on (like the Greek situation in 2011), street prices may very easily increase to 20% or even explode to 50% or more over spot. It is, therefore, good advice to buy the dips and load up on physical bullion during quiet times at the usual premiums and/or when the overall market takes a breath.

Tax considerations (see Do I Have to Pay Sales Tax… section, above) may influence your individual buying decision though, depending on actual total cost to you. Find out the total to be paid including premium, any taxes and shipping cost.

How Do I Buy and Sell Physical Gold and Silver?
Do I Have to Pay Sales Tax (or VAT or Similar) on Precious Metals?
Should I store my precious metals locally or overseas?
How Much Should I Pay for Physical Bullion?
Can I Earn a Higher Profit With Numismatic Coins?
Should I Buy Bullion Bars or Bullion Coins?
Should I Buy Bullion Online?
Should I Buy Bullion Over the Phone?
Should I Buy Bullion Using eBay or Amazon Marketplace?
Is Confiscation of Gold a Real Risk?
Are There Any Reporting Requirements for Gold or Silver?
Should I Buy Vaulted Allocated Gold or Silver?

Should I Buy Bullion Bars or Bullion Coins?

This is a matter of personal preference as well as your investment plan and overall economic situation. While bullion bars are generally cheaper in terms of premium over precious metals content, they are also larger (less divisible) and may in a severe situation be not as easy to sell as widely reckognized bullion coins. With large amounts to be invested, holding bullion bars makes sense. Medium-sized 100 gram gold bullion bars have almost the same low premium as the larger Kilobar variety and may thus be the choice for average investors. Smaller than 100 gram bars are not usually recommended for physical bullion investment purposes. Bullion coins have the added advantage of superb fungibility, particularly the popular internationally traded coins. In silver, it should be noted that silver bullion coins are treated more favorably than silver bullion bars and that there are a few more countries having silver bullion coins either totally exempt from VAT or sales tax or applying a low rate (e. g. 7% in Germany). This fact may also affect whether you buy bullion bars or bullion coins. (For details, see Do I Have to Pay Sales Tax… section, above.)

How Do I Buy and Sell Physical Gold and Silver?
Do I Have to Pay Sales Tax (or VAT or Similar) on Precious Metals?
Should I store my precious metals locally or overseas?
How Much Should I Pay for Physical Bullion?
Can I Earn a Higher Profit With Numismatic Coins?
What Is a Reasonable Premium Over Spot?
Should I Buy Bullion Online?
Should I Buy Bullion Over the Phone?
Should I Buy Bullion Using eBay or Amazon Marketplace?
Is Confiscation of Gold a Real Risk?
Are There Any Reporting Requirements for Gold or Silver?
Should I Buy Vaulted Allocated Gold or Silver?

How Much Should I Pay for Physical Bullion?

Precious metals bullion bars and bullion coins are commodities having intrinsic value. What they are worth is discovered by international commodities markets (gold spot market, silver spot market) and can be calculated exactly on the basis of precious metals content. That is what these pieces trade for, and there is a rather fixed amount they are “priced” at. Prices may vary locally only due to fluctuations in an underlying currency (which itself does not have any intrinsic value other than some governments “word of honor” which may well turn out to be zero) or due to local shortages in physical materials. As recently as October 2011, this has drastically been visible in Greece with bullion coins and bars selling in the streets of Athens at premiums of up to 40% over spot. This clearly demonstrates that physical bullion prices do fluctuate dramatically and that local market imbalances (either due to excessive demand, a sudden surge in demand or some actual supply shortages) immediately affect the actual paid price. In order to buy at a reasonable price, a lot depends on both timing (watch market price over a period of time) and finding sellers charging a fair premium (compare different sellers and their markups which can differ regionally; so you might want to watch prices at home as well as abroad).

How Do I Buy and Sell Physical Gold and Silver?
Do I Have to Pay Sales Tax (or VAT or Similar) on Precious Metals?
Should I store my precious metals locally or overseas?
Can I Earn a Higher Profit With Numismatic Coins?
What Is a Reasonable Premium Over Spot?
Should I Buy Bullion Bars or Bullion Coins?
Should I Buy Bullion Online?
Should I Buy Bullion Over the Phone?
Should I Buy Bullion Using eBay or Amazon Marketplace?
Is Confiscation of Gold a Real Risk?
Are There Any Reporting Requirements for Gold or Silver?
Should I Buy Vaulted Allocated Gold or Silver?

How Do I Buy and Sell Physical Gold and Silver?

Many vendors seem to strangely believe that you are somehow limited to selling back to them at a later time what you buy from them now. If so, find another dealer for someone telling you this sort of nonsense does not know the first thing about the thing he is selling. Precious metals bullion bars and bullion coins are not collectibles that need to be sold to special goldsmiths or coin shops. You may buy or sell them freely wherever they are offered. You may or may not want to sell back where you bought and it may be a nice to be able and re-sell to the same dealership at a later time, but neither any need nor any increased likelihood to do so. Rather, where you buy or sell is largely a matter of price.

Do I Have to Pay Sales Tax (or VAT or Similar) on Precious Metals?
Should I store my precious metals locally or overseas?
How Much Should I Pay for Physical Bullion?
Can I Earn a Higher Profit With Numismatic Coins?
What Is a Reasonable Premium Over Spot?
Should I Buy Bullion Bars or Bullion Coins?
Should I Buy Bullion Online?
Should I Buy Bullion Over the Phone?
Should I Buy Bullion Using eBay or Amazon Marketplace?
Is Confiscation of Gold a Real Risk?
Are There Any Reporting Requirements for Gold or Silver?
Should I Buy Vaulted Allocated Gold or Silver?
What Is a Monster Box?

Physical Gold & Silver

The time for precious metals is now — and continues to be, until the markets awash with paper money on one hand and the remains of a burst real estate bubble brought about by reckless monetary policy during the last decades on the other find equilibrium again. We are far from having arrived there, and gold and silver being literally only dumb pieces of metal are for investors who want the “insurance policy” until then. Physical bullion and bullion coins are free of counterparty risk, systemic risk and other risks that tend to materialize during uncertain times, and thus are for smart investors rather than just for goldbugs.

During uncertain times, investors buy physical bullion and bullion coins as a safe-haven investment, relying on the intrinsic value that will always be above zero — unlike paper money or stocks, both of which can fall to zero in a matter of weeks or even days, and throughout economic history repeatedly have done so.

Through our SoundMoney subsidiary, we offer both physical gold and silver bullion and bullion coins at competitive prices. We deliver worldwide via insured parcel or courier service. Due to our tax planning considerations and strategic business location we are in a position to offer silver bullion coins tax-free and without additional import duties for investors throughout all of Europe and tax-free physical gold and silver to American and international clients.

FREE Precious Metals Information

Owning physical gold and silver bullion and bullion coins may be the most prudent way to brace oneself for the economic impact that appears to be ahead. Adequate information and understanding the wider implications of doing so will be as important for physical bullion investors though.

We provide easy-to-follow FREE information for investors who already own physical precious metals or consider getting into this asset in the future. Both introductory and advanced subjects are covered and accessibly formatted into a few pages each. Our materials are available as inline text or for download as PDF-files.

The bull market in precious metals is still very much alive and running for roughly ten years now. Opportunities to buy into this market are still there and are increasingly used by institutional investors, governments, businesses and private households worldwide.

Market reports confirm this on a daily basis.

These reports need to be watched increasingly though as the bull market powers ahead. Every investment needs to be made with an exit strategy in mind. Holding physical bullion is no different. Markets move in cycles or wavs throughout history, and, to be very successful, it is essential to understand these movements and flow with them.

In our FREE materials, we cover different subjects about physical bullion investment and other asset classes. These are intended for beginners and advanced-level investors alike. Subjects include basic How Tos as well as experience from professional bullion dealers. Written by persons having real-life experience, these are true sources providing much of the information you need in order to not only protect your wealth but even increase it during the times ahead.