New Report: The 5 Biggest Mistakes When Buying Gold
Have you been thinking about buying gold but not sure where to start?
Or maybe you’ve purchased “gold” in the past but it wasn’t quite what you were expecting and got burned…
Whatever the case, whether you’re a gold investing veteran or considering making your first purchase, you’ve come to the right place.
Physical gold bullion is a great hedge for all investors seeking protection from dollar-based investments, especially in times of falling stock prices.
Bullion coins and bars are relatively affordable, liquid, anonymous, and easy to secure.
But in today’s highly competitive retail market, there are several costly mistakes investors can make when buying gold bullion.
In our latest report, “The 5 Biggest Mistakes When Buying Gold,” we break down the five most common mistakes people make when buying gold.
Not only do we identify the mistakes, but we provide a detailed explanation of why these various moves are not the smartest when it comes to buying gold and why you’ll want to avoid them.
The best part is we’re offering this report to you today free of charge. That’s right, you can get “The 5 Biggest Mistakes When Buying Gold” today, 100% free.
All you need to do is enter your email address in the space provided above or below so we know where to send it.
Cheapest Places To Buy Gold: How To Invest In Gold And Silver
During uncertain times, how can you provide yourself with some financial security?
Diversifying your assets can help provide a type of insurance policy. If you want to add that extra layer of security you need to consider investing in gold, silver, and other precious metals.
There are plenty of benefits to investing in gold, silver, and other precious metals and its possible to get gold for a reasonable price if you know the right place to look.
Where can you buy gold cheap?
In this article, were going to discuss
Allocated Or Unallocated Metals
There are many important implications in the difference between allocated and unallocated precious metals. Allocated precious metals provide the highest degree of investor safety. They are segregated, unencumbered and provide the holder ownership title. Allocated precious metals cannot be lent or leased to third parties. In contrast, unallocated precious metals begin to introduce counterparty risk, as ownership title is not secured by the holder. In certain situations, it becomes possible for gold investment vehicles to grant investor claims exceeding the total amount of underlying metal, if that metal is unallocated. In the event of issuer insolvency or bankruptcy, investors can become unsecured creditors.
Only consider investing in precious metals which are fully allocated, providing the security that the metals are not encumbered in any way and ownership claims do not exceed the value of the underlying metal.
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Buy Gold And Silver Etfs
Exchange-traded funds, or ETFs, are a popular investment option for those looking to invest in a diversified group of stocks, but many dont even think about them when investing in assets like silver and gold. The firms that manage these funds pool money from large groups of investors and buy large amounts of the assets they target, often giving them an edge in the market.
Although most ETFs are focused on assets like stocks and bonds, there are plenty of funds that make investments in precious metals. By investing in these funds, youll gain exposure to these safe-haven assets without having to handle the buying, selling, or storage of physical bullion.
However, there are cons to consider here. Investment-grade funds are managed by experts, which comes at a cost in the form of the funds expense ratio. Moreover, when investing in ETFs, you wont have any physical metals in your possession, which is a factor many precious metal investors enjoy.
Many precious metal ETFs trade on major stock exchanges like the Nasdaq and New York Stock Exchange. Some of the most popular precious metals ETFs include SPDR Gold Trust , iShares Gold Trust , and iShares Silver Trust .
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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Bottom Line: What Is Better To Invest In Gold Or Silver
While gold will most likely continue to take the lion’s share of press releases, silver continues to be a dependable precious metal that is far more affordable for investors. And in a bull market, it may even offer far better returns.
Today it is easier than ever for investors to get exposure to silver. You no longer have to buy physical silver but instead can buy shares in a silver exchange-traded fund through your investment broker.
No one knows for sure if we are in another big bull market for precious metals. But if you believe we are, perhaps skip over the much-hyped gold market and consider its less famous cousin instead.
So You Want to Learn About Investing?
Why Invest In Gold Or Silver
Precious metals are considered the perfect investment by many during times of economic turmoil. Until the turn of the millennium, very few individual investors knew about the utility of precious metals in a portfolio. In fact, gold was only really used by organizations and banks. However, the constant barrage of economic meltdowns ranging from the dot-com bubble to the COVID-19 crisis, along with questionable government programs such as Quantitative Easing have bought precious metals to the mainstream.
Gold and Silver have stayed true to their intended purpose. During most crashes, gold and silver have outperformed the stock market. At no point is this more apparent than during the housing bubble of 2008.
From October 2007 to March 2009, the S& P 500 fell more than 55%. However, the price of gold went up by over 25% during the same period. Silver, while not as high as gold, also rose by 1%.
Throughout history, we can consistently see silver underperforming against gold during times of crisis. We will look at why this is the case a little later. We will also compare their performance over the long-term to see whether silver may be preferable to gold in certain situations.
GoldSilvers data on the recent S& P 500 declines. Both gold and silver tend to do better than the S& P 500, but gold tends to outperform silver by quite a margin.
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Gold And Silver Affordability
Gold and silver values change all the time, but generally speaking, silver is more affordable than gold by weight. As noted above, many factors impact the value of gold, but there are usually more factors that impact the value of silver. Technological innovations, like batteries and microcircuits, have created more demand for silver and pushed its value up. Growing markets for appliances and medical products, which are often dependent on silver, also impact silver values. If this demand was to decrease, the value of silver would likely fall.
Both gold and silver prices also rely on market sentiment and their status as stores of value. One way to look at the affordability of gold and silver is to consider the state of the economy in relation to the precious metal. When economies begin to struggle, the value of gold tends to rise. Thats because demand increases as investors turn away from paper assets that may be seeing increased volatility.
Questions To Ask Yourself Before Buying Precious Metals
Buying physical gold or silver as an investment is not always as straightforward as it sounds. Novice investors often get lost in a variety of options: Should I buy minted bars or sovereign coins? Maybe that limited edition coin would be a good investment?
Sensible investors evaluate bullion options by the price and premium on the gold spot price. But the premium is only one part of the equation. It doesnt necessarily mean that youll get that premium back upon the sale.
Worse, there are unscrupulous dealers out there. They will try to trick you into buying numismatics and other collectibles that have a huge premium and wont retain their value over time.
As a result, its essential to get an understanding of precious metals before dipping your toes into this market.
In this article, Ill answer some of the most important questions you should ask yourself before buying precious metals.
What Is the Best Way to Invest in Precious Metals?
Each method has advantages and disadvantages.
While investing in precious metals through ETFs sounds appealing due to its convenience, there are several key issues that investors need to be aware of in relation to this method of investment.
In this regard, buying the physical metal is a more sensible option.
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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.
Gold And Silver Storage
When considering which precious metal to invest in, its also important to think about storage and the cost of transporting these materials. If you purchase gold or silver, you should have a secure place to hold them. You also need to be able to move the metal to your desired storage location. This may sound easy enough, but the process can be surprising.
What may be surprising to many is that silver requires more storage. At the time of publishing, the same monetary investment in silver and gold often yields more silver by weight. These extra ounces can drive up transportation costs. Likewise, because silver is less dense than gold, it takes up more space in storage and during shipment per ounce.
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Investing In Precious Metals
Adding precious metals bullion and coins to an investment portfolio can provide diversification and can act as a hedge against inflation. We offer competitive pricing that is driven by market rates and quoted in Canadian or US dollars. In addition to owning physical precious metals, you can also buy precious metal certificates this allows you to own gold or silver without taking possession of physical bullion or coins.
Difference #: Silver Is More Affordable
This seems like an obvious statement, but the reason its important is because silver has many similarities with gold
If you buy physical silvernot ETFs, certificates or futures contracts, which are paper investmentsyou can capture the same benefits that gold offers. Advantages that virtually no other asset provides.
Like gold, 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 is a tangible asset that cant be hacked .
- Is money, just like gold. It cant be created out of thin air like paper currency or digital entries. Look through monetary history and youll find that silver has been used in coinage more often than gold.
- Has no counterparty risk. If you hold physical silver, you dont need another party to make good on a contract or promise.
- Has never been defaulted on. If you own physical silver, you have no default risk. Not so for almost any other investment you make.
- Can be as private and confidential. You must report any gain on your income tax return, but if youd like some privacy or confidentiality with a portion of your investments, physical silver can provide it.
Silvers advantage over gold is that you can capture all these same benefits but at a much lower cost. Your financial insurance just got more affordable. Its why silver is called the poor mans gold.
Theres another advantage to silvers lower price: Selling
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The Second Was The Financial Meltdown
The financial markets experienced a sudden and dramatic crash in a space of less than three years. Gold went in the opposite direction.
From January 1, 2007, through January 1, 2010, the S& P 500 index fell from 1424 to 1123, for a decline of about 21%. But even that didnt capture the full extent of the decline, since the market was down well over 50% from peak to trough within that time frame.
But during the same timeframe, the price of gold increased from $640 on January 2, 2007, to $1,120 on January 4, 2010. Thats an increase of 75% during a time that was marked by severe declines in financial asset values.
The Most Recognizable Gold Coins
There are a lot of different gold and silver coins. What is it that makes one coin more valuable than another?
Some coins are universally recognized, while others are more obscure. The more recognizable a coin, the easier it is to use should you ever need it as currency.
The most universally recognized gold and silver coins include:
- US Eagles
- South African Krugerrands
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Where To Store Your Silver
This is an important consideration, not just because silver is valuable and thus needs to be stored safely, but also because it takes up a lot of space!
At current prices, you can get roughly 65 times more ounces of silver than gold for the same dollar amount. As a practical example, youd have to stuff 65 one-ounce silver bars in your pants pocket to equal one ounce of gold, and it would weigh almost five pounds! In other words, youll need a lot more space to store silver bars than gold. Its also more difficult, expensive, and cumbersome to transport.
This can be a dilemma when trying to use home storage or a bank safe deposit box, since it takes up so much space. There are ways to do it, though, and we devoted a full article and video to the topic here.
Once your stash starts to grow, however, I recommend you consider professional storage. Your risks of keeping it all at home increase as you accumulate more metal. You dont want to be wiped out if something happened to your stash.
Mike Maloney and I and thousands of other investors use the allocated storage program at GoldSilver.com. Your holdings are highly secure, 100% insured, and can be bought and sold online instantaneously. Its your safest option once you have a reasonable amount of bullion stored close to you.
Silver bars are one of mankinds most definitive forms of moneytheyre a tangible asset, are highly liquid, and will protect your portfolio from various financial crises.
Best Place And Way To Purchase Copper & Platinum
As in the case of gold and silver purchases, customers who intend to buy copper and platinum will benefit more from making their purchases online than at a local coin shop. Purchasing copper and platinum from an online vendor entitles them to the same advantages offered on online gold and silver orders such as easier accessibility, better pricing and more privacy. Furthermore, at JM Bullion, the transaction process remains the same regardless of which precious metals the customer chooses to purchase. While we respect the individual preferences of our customers, we would like to warn customers who intend to purchase copper and platinum locally that the availability of these precious metals will be dependent on the specific inventory of each coin shop.
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A Golden Investment Opportunity
While many investors seek out gold and silver in physical form, like bullion or coin, a better option is often to invest in mining stocks. You’ll avoid the headaches that come with storing and selling physical gold and silver, plus you may earn dividends. For those seeking greater diversification, a gold ETF or silver ETF will be a better option.
Just remember that both gold and silver can be risky assets. As a rule of thumb, they shouldn’t account for more than 10% of your overall portfolio.
Investing in precious metals can be an effective hedge against a downturn. But when it comes to long-term performance, the S& P 500 glitters far more than gold and silver.