You’ve evaluated several different investment options: stocks, bonds, real estate, frozen concentrated orange juice. And you have decided that you want to invest in gold and silver. Great, but the the question becomes how to invest in gold and silver, and do so with little or no help.
You may have some familiarity with how to buy gold and silver. You could purchase the stock of gold and silver miners. You could purchase an exchange traded fund that owns gold and silver. Or you could buy physical gold and silver, as bullion or as coins. Those are your three simplest options for buying gold and silver.
Best Way to Invest in Gold and Silver
With these options, you may be asking yourself which one you should take. To do this you need to decide your level of risk tolerance, whether you want to own physical gold, how comfortable you are with the commodities versus stock markets, evaluate any dangers, and some other factors. For some of you the best way to buy gold and silver for investment will be to purchase physical bullion or coins. This gives you something that you can hold in your hot little hands (wearing gloves) and buy and sell easily.
Invest in Gold and Silver from Reputable Dealer
Now that you answered that question let’s get into how to buy gold and silver coins. The easiest way for you to purchase gold and silver coins is to find a local reputable dealer. To find a local dealer you can ask your financial advisor, if you have one, for a recommendation. If you have friends or family who are gold and silver coin collectors ask them for a recommendation. Even if you don’t know if they’re collectors ask them. You never know who might have a recommendation. The U.S. mint has a dealer locator on their website that you can use to find a local dealer. The American Numismatic Association maintains a list of local numismatic organizations that have regular meetings and coin shows. Attend one of these and network to find dealer recommendations.
Gold and Silver Pricing
Once you’ve found a dealer it’s time to talk price. Coins have a numismatic value in addition to the intrinsic value of the metal in the coin. Bullion simply has value from the base metal. Start with the spot price of gold and silver. You can expect to pay a premium or commission over the spot price. Your goal is to find a dealer or broker with the smallest commission. Coins with the same gold content will generally be more expensive than bullion due to the coins’ aforementioned numismatic value. Obviously rare gold coins from ancient Greece won’t sell for the same amount as a brand spanking new American Eagle.
Buy Gold and Silver Online
The other option for buying gold and silver is online. This gets a little more challenging, even though you can buy gold bullion on Amazon! The reputation of online dealers is harder to assess than local dealers. You are going to have to do your due diligence if you want to invest without any help. Obviously reviews are important, but your really need to spend time poking through the online dealer’s website.
Evaluating Gold and Silver Supplies
You must call the number and talk to a person at the online dealer. Find out where they get their gold supply. Some sources smelt and assay themselves. Ask who their typical customers are. Do they supply gold for commercial uses. There are many questions to be asked before using an online dealer, so make sure to take your time when evaluating one.
Confidence is Key When Learning How to Invest in Gold and Silver
You might find people that try to dissuade you from making investments in gold and silver on your own. Those people are entitled to their opinion. You might be hesitant yourself. The most important thing is to educate yourself about gold and silver investing so that you have confidence in your decision for or against. Take the time to explore other resources this site offers to help with your education.
When you are in your education process also take the time to get a feel for the markets. You don’t have to chase daily price fluctuations but you need to understand how economic and political changes drive commodity prices. If you’re going to be a self sufficient investor this knowledge is a must.
If you want to make the most out of your silver and gold investment, we recommend signing up for Minesh Bhindi's free webinar in which he shares his methods and techniques on how to cash-flow your gold and silver at 12 to 26.4% per year. Check it out by clicking the button below.