Buying gold and silver is not as complicated as it may seem, especially when you’re working with an experienced and trusted dealer who can guide you in making your investments.
It will help to do your research beforehand and understand the market as best as you can. Here are some facts and pointers that can help you in buying gold and silver.
Terms to know
When you decide to invest in gold and silver, it will pay to know these terms:
Shares in mining companies and futures investments are also considered paper gold and silver assets.
Physical vs. paper precious metals
In buying gold and silver, you may need to choose between physical and paper investments. Paper precious metals have the advantage of lower transaction costs. You also do not have to deal with storage.
Investing in paper precious metals, however, means not having physical ownership of your assets. You may take a delivery, but the minimum amount allowed for this is extremely large.
Buying physical gold and silver, on the other hand, gives you complete access to your investments. The transaction is fully private, and does not need to be reported to the IRS. You are also free to sell or barter your bullions as you see fit.
Physical ownership can be especially handy and comforting in a crisis situation where paper currency has lost much of its value. Gold and silver may be used as currency, particularly bullion and historic coins.
Where to buy gold and silver
You have two choices on where to buy gold and silver bullions: coin shops and online dealers.
Coin shops give you the chance to physically inspect a product before buying it. Buying from brick-and-mortar stores is also a more familiar, and therefore, more comfortable practice for some people.
Buying from a coin shop, however, is only convenient when there’s one near you. It also has disadvantages compared to buying from an online dealer, including:
The key is to buy gold and silver from online dealers with proven track records, as well as accreditation and good ratings from consumer organizations like the BBB.
Products to buy
You can buy gold and silver in different forms. Among the most popular ones are:
Gold investment options
If you want to invest in gold but fear the possibility of future confiscation, one of the options you can consider is investing in gold-based ETFs (Exchange Traded Funds). ETFs allow investors to own gold assets in paper shares instead of physical ownership of the metal.
ETFs are backed by gold inventories in designated warehouses around the country. Unless you
This happened in 1933 in the wake of the Great Depression, when gold coins were still in circulation and used as legal tender.
With the emergency powers given him to address the dire economic conditions at that time, President Roosevelt ordered the confiscation of all gold coins, to be redeemed at their face value in paper money.
Just like gold, silver also serves as an effective investment diversifier, protecting your assets from the volatility of stocks and bonds. While gold has a higher value, silver may be the better investment option for some people. Here are a few reasons why: