How To Invest In Physical Gold And Silver

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Best Way To Purchase Gold & Silver

Why Invest in Physical Gold and Silver ?

Today, buying gold and silver is easier than ever since there are so many options available. However, this abundance of purchase options will often raise the question of what is the best way to buy precious metals. Our answer is that the best way will depend on the individual preferences and needs of the customer. While we are understandably partial in our opinions regarding this matter, we would like to discuss some of the best ways to purchase precious metals.

Buying Gold And Silver Online

Buying Gold and Silver online has its pros and cons as well. As we covered above, there is a bit of research you have to do on each company to make sure you didnt accidentally stumble onto a scam website. Besides that, there is much more variety to choose from than a pawnshop or LCS and you can easily tab through prices and find the best prices, for whatever it is your looking at, in live time.Most online bullion retailers dont have an inventory and pool their inventory together. This is because a shoebox of Gold could easily be a million dollars in inventory. The price fluctuation between retailers usually boils down to marketing and business overhead as well as efficiency and company optimization. The legitimate bullion retailers arent ripping you off, they are just adjusting their prices to keep their business running. The biggest misconception in the Precious Metals investment industry is that the retailers all drive Ferraris to work. When in fact, selling retail bullion to investors is the least profitable venture you could ever get into as the margins are extremely small.

Buy Bullion Bars Representing Ancient Civilizations

Not all historic precious metal offerings come in the form of coinage. If you watch the History Channel show Pawn Stars, for instance, you may have seen a gold bullion bar from the 1500s sell for over $30,000. Its age and the fact that it was a sunken treasure contributed to this value.

Fortunately, you wonât need literal treasure from a sunken ship to invest in historic gold and silver bullion. The Monarch Precious Metals Egyptian Relic Series, for instance, features the hieroglyphs found in the countryâs ancient tombs. It also has an ounce of .999 pure silver.

In your search for bullion bars commemorating ancient civilizations, you might encounter fakes. One of the most widely available currently is what looks like a Chinese ancient ingot that sells as a film prop for around $16. Unfortunately, you might find someone trying to pass it off as real.

The moral of the story? Stay vigilant.

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Question : What Type Of Gold Should You Buy

Bullion coins and ingots are a relatively safe way to buy gold, though some investors prefer to invest in gold funds, such as mutual funds or exchange-traded funds . One benefit of investing in stocks over physical gold is that it’s easier to sell. When you have physical gold, you need to find a physical buyer, which can be difficult and time-consuming, especially when the market starts to go south. In contrast, selling stocks is as easy as a few keystrokes.

Buying Gold Or Silver Bars

Sample of " How to buy and invest in physical gold and silver bullion ...

Perhaps the easiest and best way to buy gold and silver is to simply purchase bars. Investors generally buy gold or silver in bars as they are less expensive than coins.

Gold and silver bars are purchased per ounce. You can buy them as 1-ounce bars, 10 ounces, 100 grams and 1 kg . Gold and silver prices are easy to find online, making it simpler to determine your budget. These precious metals are sold in troy ounces that is slightly heavier than a normal ounce.

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Difference #: Silver Has Higher Industrial Use

About 12% of gold supply goes to industrial uses. But due to silvers unique characteristics, a whopping 56% of its supply is used in industry. Silver has so many applications that believe it or not, you dont go one day without using a product that contains it.

From electronics and medical applications, to batteries and solar panels, silver is everywhere, whether you see it or not.

As Mike Maloney says in his book, Of all the elements, silver is the indispensable metal. It is the most electronically conducive, thermally conductive, and reflective. Modern life, as we know it, would not exist without silver.

Why is this important? Because the state of the global economy can have a greater impact on silver demand than gold. Silver is thus more susceptible to economic booms and busts.

  • Investor Implication: Demand for industrial uses of silver is high in a strong economy, and weaker in a recession or deflation.

But thats only part of the story unlike gold, most industrial silver is consumed and then thrown away . Its just not economic to recover every tiny flake or grain of silver from most products. As a result, when the product gets discarded, that silver is gone for good. This limits the amount of silver that can return to the market through recycling.

  • Investor Implication: Unlike gold, millions of ounces of silver are lost every year. New supply must keep up in order to meet demand.

But wont the silver price fall in a recession or any serious economic slowdown?

Find Bullion Items Commemorating Events

Some events are so significant that they echo throughout the ages. Itâs no surprise that these events would get commemorated in gold and silver bullion pieces. The 825th Austrian Mint Anniversary Silver Coin, for instance, immortalizes the kidnapping of a king in the 12th century.

Why is such an event featured on a mintâs anniversary coin? Because the ransom paid for Richard the Lionheart is what funded the creation of the Austrian Mint. While the round may only be a few years old, its subject matter bleeds history beyond its metal border.

Of course, modern mints donât hold a monopoly on gold and silver bullion commemorative pieces. For instance, the California Diamond Jubilee Half Dollar came out back in 1925. It memorialized the states 75th anniversary and featured a forty-niner gold prospector.

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Gold As An Investment: Gold Etfs And Other Alternatives

Investors should clearly understand that purchasing physical metal is not the only way to gain exposure to the gold market. The popularity of exchange-traded funds underscores how easily people can get into the gold market without actually owning physical gold.

Gold ETFs provide exposure to the metals price by offering investors the opportunity to purchase shares that represent a quantity of gold. Neither that nor the fact that an ETF is physically backed brings an individual any closer to gold ownership. A gold ETF is not a vehicle to acquire gold.

There are, however, some programs designed to allow investors diversification of their portfolios without requiring that they take possession of the yellow metal or arrange for its storage and protection. Before investing in such a program, investors should become very familiar with the terms.

For one thing, it is important to ensure that participants are indeed allowed to take possession of their metal. Since it is not uncommon for the rules to include withdrawal minimums, investors should make sure they are comfortable with any such requirements. Other important details to pay attention to are the cited risks and costs, as well as the circumstances under which the gold is kept and the process for confirming its existence and taking possession of the metal.

Physical Gold & Silver Are The Answer

Investing In Physical Silver 101 – How to Invest in Silver

Physical gold and silver are a simple solution to precious metals ownership. Physical metals carry no third-party risk they cannot be printed at will by a bank and are real tangible property that cannot be diluted. Physical precious metals are proven assets that have withstood the test of time over thousands of years.

Gold and silver have maintained their value through times of market volatility, inflation, political turmoil, terrorism, war, global pandemics, and currency devaluation. Meanwhile, as inflation and the continued devaluation of paper currency continue to erode our purchasing power, precious metals continue to be a reliable source of protection that continues to shield investors from potentially destructive forces.

At the Oxford Gold Group, we offer services to go above and beyond any other precious metals firm. We respect all of our clients individual needs and have focused our efforts to provide all of our clients with the tools necessary to make sound financial decisions that will benefit their families for generations. Our focus is to give every investor the opportunity to invest in a tangible asset for the portfolios.

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Investing In Gold And Silver Etfs

We would not be doing the reader any favors not mentioning a third investment option. This alternative is investing in gold and silver ETFs.

Investing in these products will be the most similar investment option to buying physical gold and silver coins and bullion. The price of an ETF is directly linked to that of gold and silver. You can find live spot prices on third-party sites, such as Kitco.com.

The two most popular gold and silver ETFs are the GLD and the SLV. Both offer you an affordable option to gain exposure to the precious metal market.

However, investing in these products does come with its drawbacks. The first being that you do not have actual possession of the physical gold and silver coins or bullion. Investing in a gold or silver ETF means you have bought into the underlying price of the precious metals and not the actual asset. When liquidating your possession, youll receive the cash equivalent of your investment as opposed to physical metals.

Highly leveraged ETFs bring counter-party risk. These risks are not present when obtaining gold and silver coins. In other words, if investors lose faith in these paper metals products, your investment could plunge in value well in excess of the underlying metal value of the coins and bullion.

The Role Of Gold And Silver In A Portfolio

Put simply, precious metals serve as a hedge against market volatility, political instability, currency weakness, and economic collapse.

Because they are chemically unique, physically rare, and easily malleable, gold and silver have been used as money across much of the world for thousands of years. While they can be quite volatile, they historically store wealth very well over the long-term.

Benefits: Precious metals have no credit risk, maintain their global purchasing power over the long-term in the face of inflation or currency devaluation, and arent very tightly correlated with stocks, bonds, or real estate.

Downsides: Commodities including precious metals produce no cash flows themselves and can be quite volatile. Most precious metal miners are historically poorly-managed companies that lose a lot of money.

Due to all this, whether investors should own gold and silver is surprisingly controversial.

On one hand there are people who distrust the global economic system and invest almost entirely in precious metals. On the other hand, many mainstream portfolios have zero exposure to precious metals, with some investors believing that no respectable portfolio should have any gold or silver allocation at all.

I think investors in certain countries like the United States get too complacent. They think a lot of the bad things that happen to other markets cant happen to their own, even if it has happened multiple times to the U.S. in the past.

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Gold In The Modern Economic Climate

Although gold no more backs the united state dollar , it still brings relevance in todays culture. It is still crucial to the global economic climate. To validate this point, there is no demand to look further than the balance sheets of central banks and also other economic companies, such as the International Monetary Fund. Currently, these organizations are in charge of holding nearly one-fifth of the globes supply of above-ground gold. In addition, numerous reserve banks have actually contributed to their existing gold gets, showing concerns concerning the lasting worldwide economy. How To Invest In Physical Silver

Difference #: Silver Is More Affordable

5 Best Gold ETFs to invest in Physical Gold

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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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!

A Quick Background Of Gold

In order to fully understand the objective of gold, one have to look back to the start of the gold market. Golds background in culture began well before also the old Egyptians, that began forming fashion jewelry and also religious artefacts. Yet, it had not been till around 560 B.C. that gold started to serve as a currency. During that time, sellers intended to produce a standard and conveniently transferable kind of money that would simplify trade. The production of a gold coin stamped with a seal seemed to be the answer, as gold fashion jewelry was already extensively accepted as well as identified throughout numerous edges of the earth.

Complying with the advent of gold as money, its relevance remained to expand throughout Europe and also the U.K., with relics from the Greek as well as Roman empires prominently presented in galleries around the world, and also Great Britain developing its own metals-based currency in 775. The British pound , shillings, as well as pence were all based on the amount of gold that it stood for.Eventually, gold signified wealth throughout Europe, Asia, Africa, and also the Americas. How To Invest In Physical Silver

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Rules To Buy Gold And Silver

To start with, Mark Yaxley also urged investors to be careful whilst choosing gold and silver dealers. These companies have to be large and have a good reputation. This sounds highly obvious but it is something many people simply forget.

Here are the key non-melting or non-destructive methods to test if the gold you buy is real or not. Each of these methods alone does not give the 100% guarantee that your gold piece is real. However, if you apply these methods altogether, you should be almost certain your coin or bar is not a fake.

  • I know it sounds very obvious but you should inspect your coin carefully with a magnifying glass. It is very difficult to make the exact copy of a coin. Check the fonts, the details of the image and the spelling. If you have a bar, it normally comes in a packaging that should also be checked for quality. The more sound it looks, the better are the chances the bar is not a counterfeit.
  • You should weigh the bar or the coin you would like to buy. It is the best to use a high-specification scale. Remember that it is quite hard for counterfeiters to produce coins that weigh exactly the same as the original.
  • Density test – different metals have different densities. Gold and silver have different densities to lead, iron and zinc, for example.
  • Magnetism test – precious metals are repelled by magnets. But each metal is repelled differently. If you buy a high-quality machine, it will show you the exact result.
  • Finding The Right Price & Dealer

    Investing in Physical Gold 101: How to invest in gold

    Before you begin comparing the prices of different precious metals dealers, you need to make sure that the dealers you are researching are actually licensed to sell precious metals. Taking the time to verify their status will not only ensure that their merchandise has been lawfully obtained, but that they also understand the various policies regarding precious metals sales, such as taxation and reporting.

    After you have confirmed their license statuses, it is time to compare the different dealers. When examining prices, be sure to take into account other expenses outside the premium rates such as shipping, insurance and taxation. You should also take note of their different policies regarding shipping and methods of payments to see if they can accommodate your needs.

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