Is Silver A Volatile Asset
Investing in silver is perhaps not for someone with a tendency to get anxious. Silver is a volatile asset. This means that its value is prone to rise and fall frequently . This may be difficult for some to tolerate.
My philosophy on this is twofold: I try to only look at the medium to long-term trend, rather than at daily fluctuations. And secondly, I remind myself that silver are kind of “anti-currency”.
What I mean by this is that they represent a safe haven from and a hedge against fiat currency. “Fiat” just means that they are not backed by anything and are inherently worthless. Unlike fiat currency, bankers and governments cannot print more precious metals at will.
Learn How To Diversify Your Portfolio
Inside the Buyer’s Guide you’ll find practical information on what are the best gold and silver assets to buy, which coins and bars are the best to own, and why you might want to consider the advantages of professional storage.
With this guide, you’ll understand:
- Why gold is a prudent investment strategy. When stocks, bonds and other markets go down, gold goes up
- How to diversify your 401k and IRA portfolio with real gold and silver
- Why silver carries many of the advantages of gold but is currently undervalued
Are Precious Metals A Good Investment For You
Precious metals offer unique inflationary protectionthey have intrinsic value, they carry no credit risk, and they cannot be inflated. That means you can’t print more of them. They also offer genuine “upheaval insurance” against financial or political/military upheavals.
From an investment theory standpoint, precious metals also provide a low or negative correlation to other asset classes like stocks and bonds. This means even a small percentage of precious metals in a portfolio will reduce both volatility and risk.
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Dont Count Out Physical Bullion
That said, investors shouldnt be so quick to just ignore the benefits of owning physical silver bullion. Perhaps the biggest is the counterparty risk associated with owning one of the ETFs or perhaps even more for investors owning an exchange traded note like the UBS E-TRACS CMCI Silver Total Return ETN .
Shareholders don’t actually own title to the metal itself unless they are an in an ETF. On the other hand, when you own actual silver its yours. If the world goes crazy, you have the store of value directly in your own hands or vault. This fact underscores the number one reason why most investors choose precious metals in the first place: insurance.
A perfect example of the potential problems with counterparty risk stems from the bankruptcy at MF Global in late 2011. Investors who held warehouse receipts for silver bars within the firms accounts had their assets frozen and pooled together. The liquidating trustee in the court-approved bankruptcy paid these investors about 72 cents on the dollar for their holdings. In other words, these investors lost 28% of their bullion. With some silver participants claiming manipulation in the silver markets with regards to many of the big ETF/ETN sponsors, owning physical bullion could pay-off in the real end.
Finally, ETF fees do have an eroding effect on their underlying prices. Many of the physically-backed funds sell a portion of their bullion to pay for their expenses. Over time, this has caused to track less than spot.
How Do I Buy Gold And Silver
By Greg Hunters USAWatchdog.com
I often get many questions about how to buy gold and silver:
- How do you buy gold and silver?
- Why should I buy gold and silver?
- What kind of gold and silver should I buy?
- What is the difference between numismatic and bullion coins?
- Which of these should I buy?
- Where can I buy gold and silver?
Including the following important questions:
- Will the government confiscate my gold and silver?
- Can the government make owning gold illegal?
- How do I know if my gold and silver dealer is reputable?
- Do buyers get some kind of confirmation that what they are buying from these shops is real and certified?
These are just some of the questions I will try to answer in this post.
Why You Should Own Gold and SilverFirst off, why should you own precious metals? Read this:
Who do you think this was written by? If you guessed former Fed Chief Alan Greenspan, you would be correct. It is titled Gold and Economic Freedom, and it was originally published in 1966. After reading this, it is hard to believe he was the Chairman of the Federal Reserve for nearly 20 years. Gold is the antithesis of the Federal Reserve Note.
Greenspans article is the time tested reason for owning gold. For more current reasons, look no further than The Seven Ds of the Developing Disaster, written by gold expert Alf Field. In short:
- Deficits
- Derivatives
- Devolution
The above are the reasons why Field says gold and silver are bound to rise over the long term.
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How To Buy Copper And Platinum Coins & Bars
In recent years, other metals such as copper and platinum have become quite popular investment vehicles as well. Copper and platinum bullion provide investors with another means of diversifying their portfolio and increasing their potential for profits. When preparing to buy copper or platinum merchandise, customers can follow the same prescribed guidelines of researching spot prices, comparing dealers and selecting the appropriate style of bullion. However, customers must also be sure to consult with their chosen dealer to verify any specific policies they might have regarding these particular metals in terms of pricing, purchase or shipping.
The Cheapest Way To Buy Silver
Rounds and bars normally offer the lowest price on silver. Therefore, they represent one of the better buys from the standpoint of getting the most silver content for your money.
However, this does not suggest that coins are the worst buy. In fact,
- Coins are normally the most liquid form of silver bullion you can buy.
- Coins more widely familiar to buyers than a private-mint bar or round.
- Coins are also legal tender.
This form of silver offers multiple advantages. Coins can be spent as real money during emergencies and make excellent barter tools. Furthermore, in the unlikely but totally possible event that silver prices dip below the face value of the coins, the losses are capped at the face value of the coin. You simply wont totally lose out when you buy silver coins.
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How To Buy United States Mint Bullion Coins
The United States Mint, like other world mints, does not sell its bullion coins directly to the public. Instead, we distribute our coins through a network of official distributors called authorized purchasers who, in turn, create a two-way market buying and selling to precious metals wholesalers, private investors, and local bullion coin dealers.
This method provides effective and efficient distribution, which maximizes the availability of a two-way market of United States Mint Bullion Coins in retail markets and major investment markets.
United States Mint bullion coins are sold based on the prevailing market price of gold, silver, platinum, or palladium plus a small premium to cover minting, distribution, and marketing costs.
Why Invest In Gold & Silver
Protection. Your liquid cash is subject to inflation, and inflation is not a guaranteed, set percentage raise every single year. Inflation is volatile in its own right.
Gold and silver have their own value, which rises with supply and demand. It cant be printed like paper cash theres a finite amount on the Earth, which means there will always be a check and balance system.
The price of gold rises as a safe harbor against inflation. At the end of the day, having your assets in gold and silver protects your financial future, but they also allow you to utilize some level of risk and reward.
If the price of gold suddenly spikes, as weve seen it do from time to time, that could be your moment to cash out, and have a sizable payday similar to how stock market traders will do with popular stocks as they rise.
Hold the gold until it rises and either revel in the financial security, or sell it to re-allocate your investments and align your investment goals. Its simply better and more secure than holding your money in a high-yield interest savings account at a financial institution.
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Is Gold A Good Investment
If youre looking to strike it rich with a modern-day gold rush, youre probably in the wrong place. Over the past five years, golds price increased by approximately 36% while the S& P 500 increased by 104% during that same period. So why all the hype?
Because some view gold as a safe haven from inflation and extreme market dips. For instance, during the 2007-2008 bear market, the overall stock market plunged 33%. Gold, meanwhile, only fell 2%.
That said, gold prices can be very volatile, meaning gold isnt an entirely safe investment. In fact, you can easily craft a well-diversified investment portfolio without gold entirely.
But if you want some of that golden gleam in your investment account, aim for it to occupy only a small percentage of your investing dollars.
Find The Right Gold Dealer
Durrett advises gold bullion buyers to buy from online companies and to sell locally, explaining that local retailers cant compete with online stores and typically charge customers more. But because you will always be selling your gold at the spot price, it doesnt matter where you sell.
Take some time to research reputable gold dealers to find a fair price on gold coins. In general, avoid buying gold online through bidding sites, as you can end up in a bidding war and pay more for a gold coin than it is worth. Here are a few things to consider when youre looking for a gold dealer:
- Dealer buyback policies: Before buying from a gold dealer, investigate its buyback policies. Some dealers charge a premium for you to sell back your gold, while others will not add any additional charge. Get the buyback policy in writing, and keep it in a safe place for the future.
- Reputation: Buying anything online poses risks, so be sure to do thorough research before deciding on a dealer. The U.S. Mints listing of gold dealers is a good place to start. While these dealers are not affiliated with the U.S. Mint, it has done some research to ensure the dealers are trustworthy. Reading reviews on ConsumerAffairs is a helpful way to figure out which gold dealer is right for you.
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Buying Online Vs Locally
Perhaps, the main decision you will have to make while selecting a dealer is whether you would like to purchase your precious metals from an online dealer or a local coin shop. Local establishments allow customers to actually see the merchandise prior to purchasing them. They also eliminate the need to pay for shipping and insurance since you will be able to take your purchase home with you. There are, however, a number of drawbacks with purchasing your precious metals locally. Local coin shops charge higher premium rates than online stores in order to cover overhead expenses. Local coin shops also tend to have a limited selection of precious metals merchandise due the physical constrictions of the store and their limited clientele. Moreover, many local coin shops double as resale shops, so the majority of their merchandise will be used products.
Physical Vs Paper Metals
Among the major decisions that a person will encounter during the initial investment process is whether to purchase actual physical metals versus paper metal, but before they can make this decision, it is important to understand what these terms mean and how each one operates. The term physical metal refers to an actual piece of precious metal bullion that has been purchased by an investor and delivered to said investor. These precious metals are restricted to the sole use of the purchasing investor, who is free to sell or trade these items as they see fit. No third party individual or establishment is allowed access to them. Although physical metals possess higher transaction costs than their paper counterparts, many investors consider them as the only true way of owning precious metals.
While paper metals offer lower transaction costs on precious metals investments, there are many risks and drawbacks to these forms of investments. In almost every instance of paper metal investing, the precious metals themselves are held or controlled by a third-party company or institution and offer investors limited accessibility. Should there ever be a financial crisis, these establishments have the right to seize your precious metals, leaving you with nothing more than a documentation of ownership. For investors seeking more security and personal control over their precious metal assets, physical metal investments are typically a better option.
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Have Questions About Investing In Gold And Silver
This blog is for entertainment purposes only and should not be considered advice. We urge you, if you have more questions, to reach out to a certified financial advisor and seek counsel before investing in Gold, Silver, Platinum, or anything for that matter. Do your due diligence and ALWAYS know the risks of investing your hard-earned cash!If you have any questions about our services specifically, we are always here to help. You can reach out to us by scrolling down a tad bit further and click on the ‘contact us’ button to get a hold of us.As always, we hope we were able to clear up some things about the industry and always appreciate you guys sharing this with friends!
How To Invest In Precious Metals
There are two main ways to invest in precious metals:
When you buy the precious metal outright, you might feel like youve struck gold . Just like when you hold a dollar bill in your hand, you have the security of being able to actually have your investment in the form of gold bars or silver coins in your hand .
With ETFs, you buy stock in the precious metal of your choice. That stock is tied to the current value of the gold, platinum or silver that you invested in. Just like the stock market, investing in ETFs is a digital game, allowing you to move things around with the click of your mouse.
I dont buy precious metals at all because I like my moneyI dont want to lose it. That simple. Dave Ramsey
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Check Current Gold Spot Prices
It’s a good idea to follow the price of gold for some time before deciding it’s the right time to invest. You dont want to buy at the peaks, so you’ll want to understand what factors affect the price of gold. For instance, gold coin dealers maintain that numismatic coins are worth more than just the metal contained inside of them, which is how they can justify charging a premium when you buy. There’s really no getting around this, so be cautious of any dealer that claims it isnt charging a premium.
Shop around dealer websites to make sure you’re paying a fair price for gold. Check exchange sites to find out what the spot price is, and expect to pay a 5% to 8% premium above the spot price for a gold coin.
Individual Retirement Accounts Vs Physical Precious Metals
Precious Metal IRAs are good for folks who want to roll their 401k or Roth IRA into Precious Metals and may not have the capacity to store a great deal of Gold and Silver. The various IRA companies provide an easy outlet to buy, to sell, they store it and they give you monthly or quarterly earning statements. With that said though, this means they control the entire process and the fees can get extremely expensive. Fees vary from company to company but they can hit you with storage fees, very high markups, brokerage fees, and take a fairly large percent when you go to sell. This isnt to say Precious Metal IRAs are a huge scam just make sure to research into which trust company is the best for you.Physical is certainly the preferred method as most folks want to possess this type of wealth and investment. This gives you much more control over premiums as you are not paying a third party to purchase and custodian the bullion on your behalf.
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How & Where To Buy Silver Bars
Jeff Clark, Senior Analyst, GoldSilver.com
Buying silver bars is a shrewd investment decision. Silver bars come with lower premiums than coins, are easier to store than coins, and will rise a greater percentage in price than gold bars.
But what exactly should you buy? And where? This guide will answer all of your questions about the best ways to buy silver bars.
Where Is The Best Place To Buy Gold And Silver Online
Gold has always been a popular option for storing wealth. Because of its perpetual shelf life and limited, predictable supply , gold maintains its purchasing power over the long-term.
Due to these factors, investors typically see gold as a safe haven in times of economic crisis. Just look at 2021, when the price of gold skyrocketed as high as 40% in the six months after the Federal Reserve made emergency rate cuts in an attempt to contain the economic fallout from the coronavirus.
Silver is also seen as a safe haven, although perhaps not as safe as gold. Unlike gold, silver is used in a lot of industrial applicationssuch as semiconductors, solar panels, and medical devices, which severely limits the supply of silver available for investment. As a result, the silver price is subject to more extreme fluctuations than gold. In other words, silver has a higher risk/reward ratio.
If youre thinking about investing in gold or silver, there are a few different ways you can go about it. You can purchase shares of mining companies that produce gold and/or silver purchase shares of an exchange-traded fund that tracks the price of gold or silver or actually buy physical gold or silver bars or coins . The purpose of this article is to help you find the best place to buy gold and silver online.
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