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.
The Verdict: Should You Invest In Silver Or Gold
As you can see, there are clear benefits and drawbacks to investing in both silver and gold. So, how do you make the decision? Which is better?
Consider your investment objectives, the amount of money you have to invest, and the amount of risk youre willing to take on the safer side of your asset allocation.
Will Silver Prices Go Up In 2021
Silver tends to loosely track gold. Like the yellow metal, it is benefiting from investors jangled nerves, with the global economic recovery looking slow and the risk of new waves of Covid-19 outbreaks. Rock-bottom borrowing rates have also reduced the opportunity cost of holding a non-interest-bearing asset, and theres no sign of a change.
Unlike the gold market, where the metal is predominantly an investment vehicle, around two-thirds of silver demand comes from physical industrial applications, such as semiconductors and solders in electronics, solar panels, water purification, batteries and LED lighting as well as jewellery.
Rising industrial demand and continued investment interest are expected to combine with falling production from silver mining companies to support the silver 2021 forecast.
Analysts at Heraeus Precious Metals said in a recent report: Global silver mine supply is forecast to contract by 6.3 per cent to 780.1 Moz this year , reflecting the impact of operational shutdowns in response to the pandemic. While this is a steeper decline than in previous years, silver mine supply has been dropping since 2016 owing to falling ore grades across major silver operations and a lack of new projects.
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Gold Or Silver Jewellery
- Which colour of metal to wear was traditionally determined by people’s skin colouring: warmer colours meant gold metal, cooler colours meant silver metal.
- These days that’s not considered to be so important and you can break such ‘style rules’ as you please, but you might still like to use them as a guide to help you get started with co-ordinating jewellery to suit you and your personal sense of style.
- People with blue veins on their wrists and who burn easily are usually considered to have cool skin colouring.
- People with green veins, olive or darker skin tones or who tan well are considered to have warm colouring.
- One thing to keep in mind when choosing jewellery is that gold is much more expensive than silver because gold is a more valuable precious metal. However, there are less expensive options for gold such as gold filled or gold vermeil. Learn more about different types of gold.
- Rose gold jewellery or copper colours tend to look good on most people and can add some beautiful and unexpected colouring to your jewellery collection.
- Don’t forget that gemstone jewellery can also add an array of different colours to your jewellery collection.
- If you’re choosing jewellery as a gift and you’re not sure about which colour to pick, it’s a great idea to keep an eye on what colours your gift recipient tends to wear. Check out our guide to gift giving for the style challenged for some great tips.
Should I Buy Silver Etfs
When you are investing in silver, we recommend that you only invest in physical silver rather than ETF or paper silver.
ETFs: avoid “paper” silver like the plague!
Whether you actually take delivery of your silver or store it with a custodian here or abroad, you actually have ownership of your investment. With an ETF, you cannot take delivery of your investment. It is “trapped” in a bank vault somewhere.
This is not an assurance that you will get from paper ETF silver. The company that issued your paper ETF could go bankrupt and you could be left with nothing to show for your investment.
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When Should You Buy Gold
Many proponents of gold suggest it is a good hedge against rising prices. The facts do not support this statement though. Gold is often a better hedge against a financial crisis, rather than a hedge against inflation. In times of crisis, gold prices tend to rise. But that is not necessarily the case during periods of high inflation. If there’s a financial crisis or recession on the horizon, it may be wise to buy gold. However, if the economy is in a period of high inflation, it may be wise to pass.
When investing for retirement, you need an investment that either generates current income or is reasonably expected to appreciate in value so you can sell it in the future and use it for consumption purposes. Gold is not an investment that you can rely on for either of these purposes. Also, keep in mind that if you have gold in a retirement account like an IRA, there may be penalties for early withdrawal if you decide to sell that gold and cash out.
Commodity Exchange Traded Funds
Exchange-traded funds exist for all three precious metals. ETFs are a convenient and liquid means of purchasing and selling gold, silver, or platinum. Investing in ETFs, though, doesn’t give you access to the physical commodity, so you don’t have a claim on the metal in the fund. You will not get the actual delivery of a gold bar or silver coin.
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Importance Of The Gold
Despite not having a fixed ratio, the gold-silver ratio is still a popular tool for precious metals traders. They can, and still do, use it to hedge their bets in both metalsâtaking a long position in one, while keeping a short position in the other metal. So when the ratio is higher, and investors believe it will drop along with the price of gold compared to silver, they may decide to buy silver and take a short position in the same amount of gold.
The price of gold and silver is most often reported per ounce.
So why is this ratio so important for investors and traders? If they can anticipate where the ratio is going to move, investors can make a profit even if the price of the two metals falls or rises.
Is Buying Gld Shares The Same As Buying Gold
From the average investor or trader’s standpoint, buying GLD shares is the same thing as buying gold. GLD shares will replicate exposure to gold prices, minus expenses related to storing the gold and trading GLD shares. However, it is important to understand that GLD shares do not give you ownership of physical gold. You can’t trade in your GLD shares for the gold bars, for example.
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Should I Buy Gold Or Silver Coins
We’d say buy both. The wise investor has a diversified portfolio, so that a sudden dip in the value of one of their investments won’t wipe out a huge percentage of their fund. Gold, as we’ve seen, generally rises steadily in value, but not spectacularly.
Silver investment performance is much more fluid, giving you more opportunities to make rapid profits or buy cheaply.
A mixed gold and silver investment will give you the best of both worlds, with the dependability of gold and the flexibility of silver.
Frequently Asked Questions
It depends on the markets. Silver is more susceptible to market changes and can gain and lose value quickly. Gold is more reliable, tending to gain value slowly but steadily with faster growth in challenging markets.
Only silver UK legal tender coins are VAT-free. All investment gold bullion is free from VAT and CGT.
We recommend bullion as the safest, tangible investment.
Silver is more affordable than gold, giving you greater flexibility to sell and buy.
Most silver coins are liable for VAT and CGT. Silver is volatile so best seen as a long-term investment. Silver requires more stage space than the equivalent value of gold, adding cost / inconvenience.
Gold is recognised worldwide as a dependable investment, and gold UK legal tender coins are both VAT and CGT exempt.
Gold is more expensive to buy than silver so gives you less flexibility when selling though smaller gold coins are relatively affordable.
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!
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A Brief History Of Gold
In order to fully understand the purpose of gold, one must look back to the start of the gold market. Gold’s history in society began well before even the ancient Egyptians, who started forming jewelry and religious artifacts. Yet, it wasn’t until around 560 B.C. that gold started to act as a currency. At that time, merchants wanted to create a standardized and easily transferable form of money that would simplify trade. The creation of a gold coin stamped with a seal seemed to be the answer, as gold jewelry was already widely accepted and recognized throughout various corners of the earth.
Following the advent of gold as money, its importance continued to grow throughout Europe and the U.K., with relics from the Greek and Roman empires prominently displayed in museums around the world, and Great Britain developing its own metals-based currency in 775. The British pound , shillings, and pence were all based on the amount of gold that it represented. Eventually, gold symbolized wealth throughout Europe, Asia, Africa, and the Americas.
So Is Gold And Silver A Good Investment Right Now And Where Are These Commodities Heading In In The Last Quarter Of 2020 And Into 2021
Gold and silver are very safe, long-term investments in fact, when it comes to gold, the long-term trend shows that it grows at an average rate of around 10 per cent per annum.
That said, these assets have an inverse correlation to world markets. In other words, if the stock market is rising, gold and silver are generally flat or down. Therefore, if you decide to invest you need to expect there will be years of limited to no growth.
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Why Buy Silver 10 Reasons To Invest In Silver
Jeff Clark, Senior Analyst, GoldSilver
Is silver a good investment? Why should someone buy it?
Its natural and even prudent for an investor to wonder if a particular asset is a good investment or not. Thats especially true for silver, since its such a small market and doesnt carry the same gravitas as gold.
But at this point in history, there are very compelling reasons to add physical silver to your portfolio . Here the top 10 reasons why every investor should buy some silver bullion
Physical Silver Is A Hard Asset
Of all the investments you own, how many can you hold in your hand?
In a world of paper profits, digital trading, and currency creation, physical silver stands in contrast as one of few assets that you can carry in your pocket anywhere you go, even another country. And it can be as private and confidential as you want. Physical silver is also a tangible hedge against all forms of hacking and cybercrime. Theres no erasing a silver Eagle coin, for example, but that can certainly happen to a digital asset:
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Gold Or Silver: Which One Should You Buy Now
Bullion prices are on fire. Both gold and silver are moving up smartly.
Gold hit a life high recently and silver has made a rocket-like move up.
But which one is the better bet today? If you could buy only one, what should it be?
Find the answer in this video.
Hi. I’m Apurva Sheth and I welcome you to this latest edition of Fast Profits Daily.
So friends, precious metals have crossed their lifetime highs. Silver is up to levels of Rs 60,000 per kg and gold is up to Rs 50,000 for 10 gm. Now, if you are a Fast Profits Daily subscriber, then you would not be surprised that this was coming.
In my video in May, I spoke about the rally which was about to come in gold and I spoke about the unique profit signal which is none other than the fate the Federal Reserve generates in gold. So all the past signals in gold have generated huge returns for anyone who is holding gold and in most recently, Vijay recorded a video on silver last week itself. So if you have been watching any of these videos and using this information then, I am sure that you must be happy right now that in both the gold and silver have moved according to our expectations.
So here what we will see today is the ratio chart of gold by silver. So we will divide the price of gold with silver, and this will give you a ratio chart, which looks something like this on your screen.
So that’s all from me for today. Thanks a lot and have a nice day.
Why Do Some People Say Silver Is A Bad Investment
There will be pros and cons with almost any investment. We wouldn’t say silver is a bad investment as we’ve already explained, it has much to offer but there are some other factors which you should consider.
Silver is used for many purposes other than investment. As it is reflective, conductive and even has antibacterial properties, silver has numerous applications in industry. Consequently, the demand for silver rises and falls along with the demand for the industrial products that use it.
In weak markets, falling sales of those products amplify silver’s volatility, pushing prices down further. So just when you might want to realise some of your silver’s value to help bolster your finances, the price you receive may be disappointing. Conversely, at least it will be cheaper to buy a silver lining, you might say!
The other main consideration is that as silver is worth less than gold, you would need to buy much more of it to match a corresponding investment in gold. This is known in investment circles as the gold to silver ratio.
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What Ratio Of Gold To Silver Does Peter Schiff Recommend In A Precious Metals Portfolio
Peter Schiff has always recommended holding 10-20% of an investment portfolio in physical precious metals. But how much of that percentage should be in gold and how much in silver?
Generally speaking, Peter advises holding about 2/3 of precious metals holdings in gold and about 1/3 in silver. This provides a stable foundation in the resilient yellow metal paired with the strong upside potential of silver.
Many of our clients are interested in better performance in their metals investments, and therefore buy a larger share of silver. They are willing to endure silvers short-term fluctuations in exchange for its long-term growth prospects. Silvers ever-expanding industrial applications and apparent undervaluation relative to gold both indicate silver is likely to make big moves in the future. You can read all about silvers bright future in the SchiffGold Special Report, The Powerful Case for Silver.
Generally, defensive investors prefer to stick with the more conservative 2:1 allocation of gold to silver. Its ultimately up to the individual investor how to allocate his or her precious metals holdings. For some, this also includes a consideration for platinum and palladium.
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