Diversity is the key to a successful investing venture. Precious metals should make up at least ten percent of your portfolio. Learning how to invest in gold and silver increases the value of your assets and diversifies investments. How to Invest in Bitcoin.
SILVER: Like most precious metals its value lies in the supply and demand for it. Since it isn’t traded as heavily as gold, it is more stable in somewhat ambivalent markets.
Investors are more apt to buy silver when detecting that a market decline is on the horizon. This gives way to a rise in demand which increases its ultimate worth.
Pros – Cheaper. More reliable than government bonds.
Cons – Volatile. It may be harder to sell while waiting for the desired price.
It is a diverse investment for an Individual Retirement Account (IRA) whether you’re retired or planning for the future.
HOW TO BUY:
Can be purchased as:
· Coins or bullion – Physical ownership of precious metals.
· ETFs – A collection of securities traded on the stock exchange.
· Mutual funds – Money that is pooled with other investors.
· Stocks – Owning a share of a company for dividend payments.
Uses:
This valuable white metal is used for products such as solar panels, coins, jewelry, and mirrors. It has over 100 industrial and electronic uses. Industrially, when it has fulfilled its use it is discarded. Gone forever.
Products such as Colloidal Silver are made of minute silver particles mixed with a liquid. It touts many health benefit claims, however, they have not been medically proven. Do your due diligence before ingesting such products.
GOLD:
Unlike other investment vehicles, you can actually take physical possession of this commodity. In fact, it is what backed the USD until the 1930s.
Back in the old days, pioneers panned for the shiny yellow nuggets by flowing rivers and streams. Over 750,000 lb were found during the California Gold Rush from 1848 until 1858.
Pros – Strong market demands
Cons – High coin fees and premiums
It is a precious metal with high liquidity. There is always a buyer when you want to sell or trade. A reputable company with a proven track record will help you to make the right investment decisions for your needs.
HOW TO BUY:
· Coins and bars
· Jewelry
· Futures
· Invest in mining companies
In addition, a 401K and IRA retirement funds can be rolled over into gold account to hedge against inflation or market dips. Think of it as insurance in case of a downturn. It’s price almost always go in the opposite direction of a plunge because its demand goes up.
What if an economic crisis occurs and FIAT cash loses value? Your physical holdings of precious metal ensure you will be able to ride the tide and survive it.
Those who held on to cash or their portfolios were backed by FIAT are pretty much screwed at that point. As earlier stated, ten percent of your portfolio should include metals for the long term.
GOLD VS SILVER:
Each one is a rare metal but silver is more volatile. It carries the same benefits and is useful for small everyday purchases.
Gold is well suited for larger purchases such as vehicles or high-priced appliances. The best strategy is to have a nice mixture of both so that you are well covered.
Savvy investors are loading up their retirement accounts with physical metals. They have proven themselves time and again to be a safe haven in times of any financial upheaval.
WHAT CAUSES DEMAND?
A limited supply of any commodity is the root of demand. Investing in precious metals provide a solid hedge against the constant printing of new money that only serves to devalue the dollar.
We hope this article provided insight on how to invest in gold and silver.
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