In a time of coronavirus induced economic instability — taking RISKS and putting all your eggs in one basket is not a good idea.
After all, if the dollar collapses, do you trust the banks to protect your wealth?
Today my aim is to walk you through Investing in Gold and Silver for Dummies (even in an unstable economic climate)
Right now the market indexes are in a state of turmoil, with volatile investor sell-off motivated insanity. Traditional forms of investing have seen the tailwind of a depression.
I’ve been observing trends in our economy and using it to our reader’s favor for years, and today, I’m going to share my observations on investing in Gold and Silver for complete beginners.
Keep reading until the end of this article for an insider secret on the market right now and how to take advantage..
While it’s all too easy to jump headfirst into an investment nowadays without committing to due diligence, facing up to the task of educating yourself on the matter will make you a better Investor and it may just save your portfolio.
This is one article you seriously DON’T want to miss!
Check it out below and let me know what you think in the comments?
Is Precious Metals a Good Investment?
Yes, investing in a precious metal like Gold in today’s market is an excellent idea.
In light of COVID-19, the global economy has never seen so much cash stimulus before. While many analysts believe we are on the verge of the next Great Depression in 2020, this also reinforces the fact that the dollar may very well collapse in the next 12 months.
The Fed’s recent cash injection to the economy does not sit well for the greenbacks.
The collapse of the U.S. dollar will likely push gold prices to over $5,000 an ounce which means that, even at $1,400 an ounce, gold is still dirt cheap. I firmly believe every investor should own gold right now as the ultimate store of wealth that will protect hard work and savings.
Here's the reality...
The early adopters — those who wisely purchased their positions in gold before the masses come — will sleep soundly at night while others fret as they watch the purchasing power of their savings evaporate like water in the Sahara.
To avoid risking losing your savings like the masses, why not purchase some bullion right now? Click the link below to check out the low prices with SD Bullion.
They’re a personal favourite for me for their friendly staff, great user experience, and fantastic insurance policy on all purchases!
Gold and Silver Stocks
It’s good to invest in gold and silver stocks but you would need to focus on pure gold or silver players (the mining companies) and an in-depth research is necessary.
For the mining companies, higher prices for gold and silver ensure higher profit. Increased profits will always offset their cost.
You need to be careful because not all mining companies have the same bright future. We recently created an article on the best gold stocks of this year. .Some will do extremely well while most will not and so you need to be able to differentiate between the three types of gold and silver miners.
Types of Miners
Senior Mining Companies:
- They have so many operating mines all over the world. Examples are Goldcorp, Barrick Gold, Franco Nevada etc. it is safe to invest in these companies.
Mid-tier Mining Companies:
- They are much smaller in scale but their potential in terms of returns is bigger because of the profits they realize. Examples are First Majestic Silver, New Gold, Endeavour Silver etc.
The Junior Mining Companies:
- They are new in the business. Starting up could be quite expensive and so the need for resources is big and so also the associated risk. So it is your duty to find out the ones that would create economic value.
Why Invest in Gold and Silver (Reasons in 2020)
I’m going to give you reasons why you should invest in Gold and Silver. Here they are:
⦁ History tells us for more than five thousand years GOLD is the only form of currency that has survived and not failed. That’s because during any economic crisis it has always been the safest investment that has the greatest potential to increase your wealth. If you don’t believe me, check any Recession in the past 50 years and look at Gold’s price.
⦁ Silver is being referred to as a miracle metal simply because, in world rating, it is the second most useful commodity after oil. When industrial production ramps up and lockdown’s end across the globe, we will see increased consumption for items where Silver is necessary: iPhones, mobile phones, digital cameras etc. Why not invest now while it’s price is low?⦁ When inflation rises, the value of the dollar goes down. Over the long term, almost all major currencies have depreciated in value relative to gold. Therefore, people tend to hold money in the form of gold. In times when inflation remains high, especially when it is in high double digits, over a longer period in the economy, gold becomes a hedge against inflationary conditions.
It's Independent from the Government!
⦁ The Fed has no power over gold and silver because they are not created and dependent on the government.
⦁ As an investor, you can buy and own gold and silver privately and anonymously.
⦁ With the way things are going in politics and market demand, the government will come under pressure to return back to currencies supported by gold which could cause the value of gold to rise in the future.
You can Make A Profit (from Gold Plated Jewelry)
- Investing in precious metals drives profit and draws specific consumer group. Starting a gold sales business is different from other business because of the nature of the capital. It is a good idea to have a solid knowledge on how the market works before trying to make money on selling gold jewelry. Learn more about how you can make a profit from Gold Plated Jewelry.
Gold Investing 101: Investigate Before you Invest
⦁ You need to seek for knowledge from a reputable dealer or financial advisor you can trust. Unfortunately, some promoters do not deliver what they promise and may push you into the wrong investment.
⦁ Do not be in a hurry to invest because any sales pitch urging you to buy quickly. This should be a signal to walk away and hold onto your money.
Commit to your due diligence!
⦁ You need to research the company by doing some searching around online. Find out about other people’s experience with the company. You can also read articles about investing in silver for beginners and also try to communicate by phone if possible to clarify any details. And also if possible, you can contact your local consumer protection agency.
Click the link below to check out the low prices with SD Bullion. They have been a favourite of ours (and our readers) for many years.
Familiarize the Buying Process
⦁ Before you start investing is any precious metals, arm yourself with knowledge and form your plan from there. Do some research on the best places to buy silver bars. You can start online or you can check dealers near you.
⦁ You should walk away from sales representatives that minimize risk or tries to shy away from disclosing the risk involved. A reputable sales representative would always disclose the risk involved to you.
⦁ When you plan to venture in expensive metals, it is ideal to have a full grasp on the ins and outs of the process. You should get to know today's silver dollars value and worth. Aside from that, you should also need to learn the techniques on how to maximize that value and all its fluctuations so that you get yourself some decent returns.
⦁ Know what to buy specifically. If you are new investor, surely you want to know which one is better like investing in silver coins vs. bars. Both of these have advantages and disadvantages that only make them the better choice on certain situations. Take a clear view which is best suited to you for your investment.
⦁ Make sure you get a receipt for your transactions.
Read Company's Reviews
⦁ Read some reviews of different dealers online like APMEX, Kitco, Monex, Dillon Gage, etc. from consumers feedback. Reading customers experience will help you see who you want to invest with. You can also visit this page for Augusta Precious Metals reviews. And, see here for California Numismatic Investments reviews.
Consider Different Entities
⦁ Do not restrict yourself to dealers alone, you can also buy through banks because they offer gold bullion at a lower markup than dealers. And you can also enter the name of the coin into an online search engine to compare prices from other dealers.
⦁ Ensure that you ask for a guarantee or certificate of authenticity for the bullion’s precious metal content. Research the company behind the guarantee or certificate because certificates can be faked.
Guard your Investment: Precious Metals Storage
⦁ Anyone who has important possession would want to guard it the best way we can, specially with our dear ones in life. Just like in expensive metals investment, we want to place them in proper storage for security, protection and peace of mind. Before you plan to invest, you have to consider how to secure your them. Know what are the options you can choose for your precious metals storage, read more about it here.
Why is Silver Dropping?
Touched on briefly above: when industrial production ramps up and lockdown’s end across the globe, we will see increased consumption for items where Silver is necessary: iPhones, mobile phones, digital cameras, and so forth.
Something silver investors need to consider is the industrial fabrication demand which makes up 60% of total silver consumption.
"The four largest manufacturing companies by revenue are Volkswagen, Toyota, Apple and Samsung. These companies have either been taken offline in the case of Apple and Samsung, while Toyota and Volkswagen have been affected by the disruption in the supply chain. Looking at the largest silver producers, Mexico and Peru, they have not had any reported coronavirus cases meaning the production of silver has gone unscathed leading to a temporary Supply/Demand imbalance. " - Phillip Streible
Buying gold and silver can help protect your wealth and I am very sure that the practical application of this guide to investing in Gold and Silver for Beginners would help you from falling into wrong hands. In fact, by simply analyzing current stock prices and graphs we can see that there will continue be an uptrend in the market! Check out the video below for an explanation.
As an Investor (or future investor), you need to be in a position to forecast and predict market volatility before it happens.
If COVID-19 has taught us anything, it's that we need to prioritize diversifying our portfolios to prepare for future market turmoil.
For those who take advantage of it, the coming decade could return untold fortunes.