How To Buy Gold And Silver For Investment


What Weight Silver Bars Should You Buy

Buying Gold and Silver for Beginners (How To)

One of your first decisions when buying silver bars is what size to purchase. Silver bars come in different sizes and weights. The majority range from 1-ounce to 100-ounces, which is the suitable for most investors. Bars are produced as heavy as 1,000 ounces, which is what banks, exchanges, and ETFs usually buy.

As the table above shows, the bigger the bar, the smaller the premium. Thats because for the most part, it costs the refiner just as much to produce a silver kilo baras a 1-ounce bar.

But that doesnt necessarily mean you should buy the biggest bar you can afford. Here are the problems that can creep up with large silver bars. Big bars

Cant be divided up once you own them. If you buy a 1,000-ounce bar, youll someday have to sell the whole thingwhich you may not want to do. Smaller bars will be more practical to sell for the small needs you may have in the future. In fact, this is one of silvers advantages over gold, so take advantage of it!

Have fewer potential buyers. Not many investors can afford to buy a 1,000-ounce bar. If you have 10- and 100-ounce bars, you have a greater pool of customers and thus will be able to sell more quickly and easily.

Come with higher counterfeiting risk. Most of the counterfeit bars that have surfaced are with very large bars. Counterfeiters prefer them because theyre worth a lot more.

Scams And Counterfeit Gold And Silver

Many folks will never end up buying Precious Metals because they are worried, they will be scammed or sold counterfeit bullion. This is certainly a threat and happens ALL the time in our industry, however, there are VERY easy steps you can take to avoid being scammed. First and foremost, buy a test kit. Test kits range from chemical, magnetic to x-ray machines and are so readily available and inexpensive there is no reason you cant test a questionable item. Dont want to buy a test kit? You dont have to. Walk into any jewelry store and they will have a handheld x-ray device that can test purity in a matter of seconds.Secondly, it is extremely easy to avoid ever being sold a counterfeit piece in the first place. ONLY buy from a reputable dealer and know how to do a little bit of a background check on a bullion retailer before purchasing. Dont feel like doing that? Here is a shortlist of bullion retailers who will NEVER rip you off. Investor Crate Best company on the planet! Of course, I am just joking, we are obviously bias of ourselves. We do, however, conduct random batch testing and PHYSICALLY have hands-on every single item that leaves our facility, pride ourselves in an easy cost-effective subscription-based model, and sell millions of dollars worth of Gold and Silver a year so you be the judge! So if you want to build your stack every month for years to come, consider us! But you absolutely cannot go wrong with

How & Where To Buy Gold Bars

Jeff Clark, Senior Analyst, GoldSilver

If youre looking to invest in physical gold at the lowest possible price per ounce, theres no better choice than gold bars. Coins may be more attractive, but all that manufacturing and packaging comes at a price. Gold bars, on the other hand, are the stalwart of the industry, what everyone from average investors to central banks buy and store. In other words, you cant go wrong buying gold barsprovided you follow four tips including where to buy gold bars.

In this gold bar buyers guide, well cover:

  • Why buy gold bars?
  • How to buy gold bars?
  • Where to buy gold bars
  • Which gold bars to buy

Recommended Reading: Loans To Purchase Investment Property

Gold Bar Brands Matter Choose Wisely

Tip: Buy only gold bars with a recognized hallmark and proper stamping.

Proper stamping and a recognized hallmark mean youre getting a reputable gold bar. There are some private mints in the world that dont include all of this information, which could mean its not a pure gold bar or has low quality. Its important that you know how to make sure your gold is real.

Stamping: a reputable gold bar should have its weight, purity, refiner, and a registration number stamped on it.

Its important to buy gold bars with these markings. Without them you dont know what youre getting, and a future buyer will probably demand an assay.

Theres an easy way to assure your gold bar has proper stamping, and thats to buy bars with a

Reputable hallmark: A hallmark simply refers to the brand of the barthe refiner or manufacturer that minted the bar. You want a well-recognized hallmark so that you know youre getting a high quality bar, and also so that youll have no difficulties someday selling it. A good hallmark will allow you to sell the bar virtually anywhere in the world. It is highly liquid.

Here are some of the worlds most highly regarded refiners:

There are others, such as the Sunshine Mint and Republic Metals .

You Should Invest In Silver If

 Gold &  Silver Investing: Undeniable Reasons to Buy [Infographic]

You might prefer silver if youre the kind of investor who wants exposure to safe assets in your portfolio, but you also want the ability to realize larger gains on these assets and are willing to accept a slightly higher level of risk. The best candidates for silver investments:

  • Have a Total Portfolio Value of Under $35,000. Silver comes with a much lower price per once and is therefore more accessible than gold. Those just starting out with relatively small investment portfolios will likely be better served choosing silver over gold.
  • Want Larger Gains. Although there are times when gold will increase in value faster than silver, theres a strong historical argument that silvers value has room to run in the future. If youre looking for stronger growth in your safer assets, silver is likely the way to go.
  • Are Risk Tolerant. Silver is a safer asset than equities, but there are risks involved. Silver is more volatile than other safe assets like gold, Treasury bills, and many bonds. This volatility increases risk.
  • Are Willing to Put Time In. Because price swings happen in silver faster than they do in gold, its important that you pay close attention to market movement, economic reports, Federal Reserve statements, and industrial demand for clues as to when to buy and sell.

Also Check: Morgan Stanley Investment Banking Division

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.

Join Thousands Of Satisfied Customers

  • 5 StarsTrustpilot

    Contacted Lear Capital for the first time was nothing less than a positive experience. I had the pleasure of conversing with Michael Fousse, a very knowledgeable, and personable Lear representative. Product arrived within time constraints promised. I plan to place an additional order in the near future.

    D.C. Mee from Nevada, Verified Customer

  • 4.5 StarsTrustpilot

    Being new to buying silver it was hard to get information to purchase as a professional. With the help of Lear Capital my first purchase worked out satisfactorily. Due to the help and information received I feel confident in doing business with them. The purchase was delivered fast and complete.

    Robert S. from Texas, Verified Customer

  • 5 StarsFoursquare

    Great experience! Great communication! Honest people! I had a promissory note and also invested on another project. During the pandemic things were difficult for me, and they came through. Highly.

    Jaime R. from California, Verified Customer

  • 5 Stars

The reviews are real reviews sourced from 3rd party websites.

Recommended Reading: Fidelity How To Invest Roth Ira

How To Invest In Precious Metals

There are two main ways to invest in precious metals:

  • Buying the gold, silver or platinum outright
  • Buying an exchange-traded fund or a mutual fund with gold in the mix
  • 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

    How To Buy Physical Gold

    Coins vs. Bars: An Insiders Guide to Buying Gold and Silver

    If you decide that investing in physical gold is the right move for you, here are some things to keep in mind.

    1. Find a reputable dealer. From working with pushy salespeople to falling victim to scams, navigating the world of buying and selling gold can be sketchy. Sellers can inflate their products value, or use persuasion tactics to create a sense of urgency to buy immediately. Doing some homework ahead of time can help you avoid a bad investment.

    You can use the National Futures Associations Background Affiliation Status Information Center to check on a firm or individuals background.

    2. Watch out for fees. Gold dealers typically charge more than golds spot price, or the price at which gold trades on a commodities exchange. This premium typically consists of a dealers fee and manufacturing and distribution charges.

    3. Find secure storage. People joke about burying gold for a reason: Its valuable, and because it’s a physical commodity, people may try to steal it. Its important to anticipate storing your gold somewhere safe, whether that is a literal safe or a safety deposit box at a bank. Storing gold safely can get expensive. Depending on their size, safety deposit boxes at a bank can run from $30 to a couple hundred dollars a year.

    4. Consider purchasing insurance. Insurance is an additional cost of owning physical gold. If you purchase insurance, be sure your policy covers the exact type of asset you have.

    Don’t Miss: Investment Account Sign Up Bonus

    Another Way To Invest In Gold: Gold Iras

    Another option for gold investment is a gold IRA. Like traditional IRAs, gold IRAs are designed as a long term investment. Over time you add more gold into your retirement and then when it comes time to retire you can start to sell it off.

    You can even rollover a traditional IRA into a gold IRA account.

    Gold IRAs involve investing in physical gold. You find a company that sells gold for IRAs and then arrange for it to be stored with a custodian. Almost all gold IRAs require your money to be stored at a secure facility instead of at your home. This is partially for security and partially for the fact that you arent supposed to sell off your IRA until you retire.

    Another thing to consider when looking at gold IRAs is that there are only certain types of gold that are allowed in an IRA. Bullion is the preferred investment method for an IRA. You can also invest in certain gold coins. Not all coins are eligible for investment in a gold IRA. Keep this in mind when shopping. The limit in gold investment options is one of the reasons that it is always best to shop with a company that has experience working with gold IRAs or specializes in selling gold for gold IRAs.

    Investing in gold with a gold IRA is a very good option for investors as it allows you to invest in real gold that is secured for you. There are fees involved in the investment but they are typically minimal, especially if you spend the time to look around for the best sellers and custodians.

    How To Gold Ira Plans Work

    Various other expenses of individual retirement account gold storage space are account setup costs. Some companies bill $50 to $150 for setting up an account, but some forgo it entirely if you transfer more than $300. You may also require to pay yearly storage space fees, which can run anywhere from $50 to $300 annually, depending on the dimension of your account. If you’re thinking of acquiring or offering gold, it is essential to recognize the charges that include keeping your rare-earth elements.

    Tax obligation consequences of owning gold.

    There are a few methods to avoid paying taxes on the gains from having gold in your individual retirement account. While selling gold for a loss isn’t a tax-free deal, it’s feasible to deduct the loss from your common revenue. For example, if you offered gold for $300 an ounce, you would receive a gain of $15,000 throughout a year.

    The tax treatment of physical gold is an important consideration, as it might substantially impact the quantity of after-tax returns. Physical gold can be taxed at a higher price as a result of its collectible standing, and also there are added costs for storage and insurance policy. Nevertheless, most gold financial investments are held in Individual retirement accounts, which can result in greater after-tax returns. Additionally, individual retirement account trustees usually bill flat fees for administration and also storage space of gold properties.

    Don’t Miss: Fisher Investments Assets Under Management

    Silver Is Cheaper Than Gold

    Silver is less costly than gold much. In the 21st century, its spot price in the financial market has never exceeded $50 an ounce. Gold trades in the four figures. So silver is much more affordable: The same dollar investment buys you a lot more silver than gold, and silver has the potential to offer more profit.

    How To Invest In Physical Gold

    A Guide to Buying Gold and Silver Online

    Investing in physical gold can be challenging for investors more accustomed to trading stocks and bonds online. When it comes to physical gold, youâll generally be interacting with dealers outside of traditional brokerages, and youâll likely need to pay for storage and obtain insurance for your investment. The three main options to invest in physical gold are bullion, coins and jewelry.

    Read Also: How To Easily Invest In Stocks

    The Unique Risks Of Gold Mining Stocks

    But the opposite is also true. If the price of the metal falls, gold-mining stocks may decline by an even greater percentage. Thats because the decline in profitability will have the reverse effect.

    In addition, gold-mining stocks are more subject to economic conditions. These can include high interest rates, raising the cost of borrowing, changes in government regulation, the tightening of the credit markets , and even political or labor unrest in the countries where the companies operate mines.

    Ultimately, gold mining stocks are much more speculative than the metal itself. While its true they can enhance the return on the gold portion of your portfolio, that increase is hardly guaranteed.

    Its even possible that, due to economic factors that affect all businesses, the value of gold-mining stocks may go flat or even decline while the price of the metal is increasing.

    As far as silver mining stocks are concerned, theyre less popular than gold-mining stocks. This is in part because much of the silver mining throughout the world is done by companies that mine other metals, including gold.

    It will be much more difficult to get a pure play on silver mining stocks than will be for gold-mining stocks.

    Adding Gold And Silver To Your Portfolio

    As you can see, there are a number of ways to add gold and silver to your portfolio. Consider the pros and the cons of each investment strategy. With some gold and silver, you can have a properly diversified portfolio. For more information on how to protect your financial portfolio, make sure to call us at Allegiance Gold. For many years we have helped retirees and investors protect their hard-earned savings. When you call, make sure to ask about receiving your FREE Gold IRA Guide or simply fill out the form below and we will send it to you.

    Recommended Reading: Best Way To Invest In Gold Etf

    Question #: How Much Do I Need To Support My Expenses

    Another practical way to determine how much bullion you may want is to match it up with your expenses.

    What if you someday needed to sell some of your holdings to support your household? Unemployment and high inflation are just a couple reasons one might need to use their bullion to meet their monthly expenses.

    This table shows how much gold youd need on a monthly basis, depending on your expenses and how long you might need it to supplement your finances.

    If you need to supplement your monthly income by $1,000, for example, and that need would last for two years, youd want to have 14 ounces of gold. As the price rises youd need fewer ounces .

    What about silver? Heres how many silver ounces youd need, depending on your expenses and how long youd need to use it.

    Again youd need fewer ounces as the silver price rises. Keep in mind, however, that if you own both gold and silver, the amount of each youd need would be lower.

    Look at your expenses, and how long you might need to supplement them, and youll gain some insight into how many ounces you might want to own.


    More like this

    Series 65 Registered Investment Advisor

    Who Needs...

    How To Invest With Leverage

    Managing The...

    Best Real Estate Investing Advice

    There Is...

    Best Way To Get Income From Investments

    Rebalance Your...