When purchasing precious metals through Berkshire Gold Group, it is important to understand the inherent risks associated with such investments. The following outlines the key risks to consider before making a purchase:

1. Market Risk
The prices of precious metals, such as gold, silver, platinum, and palladium, can be highly volatile. Market fluctuations can occur due to a variety of factors including changes in global economic conditions, interest rates, inflation, geopolitical instability, and currency fluctuations. As a result, the value of your investment may increase or decrease, and there is a possibility of losing a portion or all of your investment.
2. Liquidity Risk
The liquidity of precious metals can vary based on the market conditions and the specific product you hold. While widely recognized bullion products such as gold and silver bars and coins tend to have greater liquidity, specialty or rare items may be more difficult to sell and could be subject to higher spreads and longer holding periods. There may also be significant price fluctuations when attempting to sell precious metals during periods of market instability or low demand.
3. Spread and Markup
When purchasing precious metals, the spread is the difference between the price at which we buy a product and the price at which we sell it. This difference helps cover operational costs such as procurement, storage, and delivery. The spread can vary depending on several factors, such as product type, market conditions, and demand. For most products, we aim to keep the spread within a reasonable range, but for certain products, the spread could be as high as 45%.

In addition to the market value, a markup is applied to cover the costs of sourcing, handling, and delivering the products. While the markup is typically aligned with industry standards, it may vary based on the type of product. Specialty or rare items may carry a higher markup due to factors such as rarity, sourcing costs, and additional services associated with the product. For some products, the markup can be as high as 66%.

4. Storage and Insurance Risk
If you choose to store your precious metals in a depository, they will typically be insured at the depository for their market value. However, there is still a risk that the depository may not be able to cover all losses in the event of theft, damage, or insolvency. While depositories are generally reputable and reliable, there are always inherent risks involved with third-party storage. It is important to review and understand the insurance policies and terms provided by the depository before storing precious metals.
5. Regulatory and Taxation Risk
The laws, regulations, and taxes associated with precious metals investments can vary by jurisdiction and may change over time. There is a risk that changes in regulations, tax rates, or government policies could impact the value or marketability of your investment. It is important to consult with a tax advisor or legal professional to understand the potential tax implications of buying, selling, and holding precious metals in your specific jurisdiction.
6. Counterparty Risk
When purchasing precious metals, there is a risk associated with the counterparty (such as dealers or storage providers) not fulfilling their obligations. For example, in the event that a dealer goes out of business or defaults, you may not receive the metals you purchased or may experience delays in delivery. Berkshire Gold Group works with reputable partners to minimize this risk, but it is important to understand that no investment is without risk.
7. Custom Orders and Specialty Products
For custom orders or specialty products, pricing can vary significantly depending on the rarity, demand, and sourcing challenges. These items may carry higher markups and spreads due to their limited availability and unique nature. Furthermore, there is a possibility that such products may not be as easily liquidated in the future, potentially resulting in losses if market conditions change.

8.No Guarantee of Profit
Precious metals are often considered a hedge against inflation and economic instability. However, they do not provide a guarantee of profits, and past performance is not indicative of future results. Investing in precious metals carries risks, and you should be prepared for the possibility that your investment may lose value, particularly if held over short periods.

9. No High-Pressure Sales
We are committed to providing a transparent and educational approach to precious metal investments. Our team will not pressure you into making a decision, and we encourage you to take the time to carefully consider your options and consult with your financial advisor before making any investment decisions.
10. Conclusion
Investing in precious metals can be an important part of your portfolio, but it is essential to understand the risks involved. Please ensure that you are fully informed about the market conditions, spreads, markups, and the potential for price fluctuations before purchasing precious metals. Berkshire Gold Group is here to assist you in navigating these risks and to provide you with the necessary information to make informed decisions. However, we strongly recommend that you consult with your financial advisor or other trusted professionals to determine whether precious metals are an appropriate investment for your specific goals and risk tolerance.

May 2025