The Importance of Having a Metal Vault Services Provider Who Offers a Buyback Guarantee
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It’s better to be safe than sorry!
The same goes when you’re investing in precious metals. To make sure your metals remain safe and yield the desired resale value, never store them at home. Opt for a metal vault service that will store your metals in secured and insured vaults.
This isn’t the only benefit of trusting such a service! They’ll also buy back the coins if you can’t find another seller.
Let’s talk about why this is a great benefit:
What does the buyback guarantee condition entail?
Most vault storage companies buy back precious metals at fair market value, even if you’ve purchased them from a competitor. This makes it easy for investors to liquidate their investments when they’re in need of funds.
The company will only require you to make the necessary arrangements to ship the coins back to their facility. Most companies buy back all precious metals regardless of where the market is headed and irrespective of whether they’re in the form of coins, bars, or bullions.
Why is this a great incentive?
Most individuals invest in precious metals because unlike other investment vehicles, these are portable, tangible, and highly liquid. Precious metals also have a strong secondary market where buyers can convert gold and silver into usable currency any day.
However, if you’re new to the market and don’t know how to look for the right sellers, your dealer may be able to help you out. They’ll either put you in touch with the right buyer or buy the metals themselves.
This way you’ll not only save on what you might have to pay to an investment broker but will also save up on time and effort.
Buyback guarantee also helps you make more informed decisions. A reliable investment dealer and vault service provider will keep you informed about the spread—the difference between the purchase price and the selling price. This kind of information sets the transparency right.
How does “buyback” guarantee fair against other options?
If you want to sell your precious metals, the most widely used method that you’d come across is the open market sale. When you sell your portfolio yourself, you get to decide the price you want to sell it for.
Although you could quote higher, to actually sell it for more, you’ll need to put in more effort. You might also need to seek help from an online auction outlet that will charge you around 15-20% of the total sale process as a fee. On the other hand, selling it back to the vault service will not cost you an additional transaction fee.
The second sale option is that of a consignment sale. Again, you’d have to pay an intermediary that will sell the consignment of coins on your behalf, after you’ve held it for a certain period.
However, the company will only sell your consignment for you if you purchased the coins from them originally. This method too includes a flat fee that may apply.
Compared to the above-mentioned options, the buyback option works better because the investor gets to sell their precious metals at market price without paying extra.
This option is swift and there is no minimum hold required. You can sell your coins back even if you bought them the night before.