Are there risks involved in purchasing bullion?
All investments involve an element of risk – bullion is no exception. The value of bullion is affected by many economic factors, including the current market price and the perceived scarcity of the precious metal, the current demand and general market sentiment. Other factors such as the bullion futures market can affect the price of physical bullion, sometimes significantly. Because bullion can reduce as well as increase in value, an investment in bullion may not be suitable for everyone. Since all investments, including bullion can decline in value, you should have a good understanding of the precious metals markets, and have adequate cash reserves before considering an investment in physical bullion.
