Important Factors Involved When Buying Gold and Silver


How to Invest in Gold and Silver


In today’s volatile financial climate more and more people are looking to invest in gold and silver as a safe investment than ever before.  Because of the situation with the U.S. Dollar and the shaky European currency (Euro), well informed investors with foresight are making adjustments to solidify their financial standing and take advantage of market fluctuations.  However, not only is the savvy and experienced investor capitalizing on the current financial circumstances, but also the average person is making a move towards the safety that the harbor of precious metals such as gold and silver offer.

From the beginning of recorded history, precious metals were the accepted and recognized currency.  Until the last century, gold and silver were the basis of monetary currencies.  As the twentieth century progressed, many governments moved from gold or silver backed currency to “paper money” systems that have no or little gold and silver backing.  This, in turn, has created the volatile environment we see today with the major world economies.

Whether you want to invest in gold and silver as a hobby, or you want to make a well thought and planned out investment, there are several important principles that one should always have in mind when buying gold or silver coins, bullion or bars. To begin with, never make an investment, whether it’s gold or silver, or any other serious investment, with an entity that cannot be trusted.  Do your homework. You should always do your research and carefully choose a trusted and reputable gold or silver dealer to make your purchases. Due diligence is always a key ingredient when making major decisions – especially financial decisions.

Once the decision to invest in gold or silver has been made, you must decide on exactly which direction to take in regards to coins versus bars. Buying gold and silver coins is perhaps the safest and easiest way of investing in precious metals today.  Because coins come in universally recognized weight measures, they can be much more easily liquidated compared to bars. Bars, on the other hand, commonly come in multiple ounce measures. Thus, when liquidating bars, you are forced to sell the entire bar. The flexibility offered by the easily negotiated coins is an advantage that weighs greatly in your consideration between gold or silver coins and bars.

Finally, let us address the important aspect of safety in the delivery and storage of your gold and silver.  Most people do not carefully consider this stage when mapping out their precious metals investment plan.  Delivery of your gold or silver purchase is important. Besides the obvious factor of using a trusted delivery method, always ensure that you receive physical delivery of your coins or bars. Taking physical possession is of key importance when taking ownership of your investment.  Having physical possession is the main way to reduce various risks that are related to investment.  If you physically possess your asset, you possess peace of mind.  However, this possession must be a safe one. There are still risks that you must have in mind when possessing and protecting your investment.  Perils such as fire, theft and flood can be greatly reduced, if not eliminated, by storing your gold and silver properly.  Quality fireproof and waterproof safes can be purchased. Storage in a safety deposit box at a nearby location is another option.  The locality and the close proximity of your gold and silver assets can also provide peace of mind when addressing the aspect of storage.

Buying and investing in gold or silver is relatively easy today, and should be considered when looking for ways to solidify your financial security.  Perhaps the previous civilizations were more fundamentally financially sound in comparison to us today.  Perhaps the trend of going back to the security that physical gold and silver provide is the way to go.  A growing number of investors believe so, and are confirming their belief by investing in precious metals.  You don’t have to be a high speed investor to invest in gold and silver.  Everyday individuals should also take advantage of today’s market as well.  But doing so should not be done blindly.  Investing in  gold and silver can be done confidently as long as it is done properly.  Be sure to know and understand exactly what you are buying and investing in, follow the advice of the experts as best suits you, and you will be fine.


Gold & Silver Coins and Bars
Coins and Bars