Precious Metals Academy
Common Mistakes
Avoid costly pitfalls by learning from common investing mistakes.
In short
- Ignoring premiums is the #1 mistake — compare 3–5 dealers before any purchase; premiums of 30%+ can erase years of potential gains.
- Concentration is the risk, not a fixed ceiling — a metals position becomes too large when it no longer matches your objective, risk tolerance and liquidity needs.
- Chasing price movements (panic buying at peaks, refusing to buy during dips) is a reliable way to lose money — a pre-set buying schedule such as dollar-cost averaging reduces the pull of short-term moves.
- US investors: the collectibles rules can cost more than long-term capital-gains treatment, but the PHYS/PSLV alternative depends on meeting the PFIC/QEF requirements — model it rather than assuming it.
- Numismatic/collectible coins carry 20–50%+ markups over spot — stick to standard bullion: Eagles, Maple Leafs, Krugerrands, or generic bars.
Learning from others' mistakes can save you thousands of dollars. Here are the most common pitfalls in precious metals investing and how to avoid them.
What drove silver to its 1980 peak, what the exchanges did about it, and how that episode compares with the January 2026 record are the subject of our article on silver’s two peaks.