You don’t have to be rich to invest in gold and silver. You don’t need a 401K retirement fund or a brokerage account. Investing in gold and silver is easy and can suit any budget. It’s a better solution right now than buying government bonds or leaving your money in low-paying interest accounts. With the growing rate of inflation and the unprecedented rise in government debt, don’t kid yourself–the safe investments of yesterday are no longer safe today. Investing in gold and silver to the extent that you can afford is the safest way to set money aside for the future.
Those that advised against investing in gold and silver a year ago, now say that it might have been a good idea after all but that it’s too late now. Don’t listen to them. If you’re planning for your retirement, if you’re a young family worried about the future of your kids, if you’re one of the millions of Americans who work hard and worry about the future-take a little money and invest it in gold or silver as soon as you can.
#1. Why Invest in Gold and Silver?
While inflation of the amount of paper notes circulating in the economy will erode the value of your US dollars, gold and silver will remain unaffected because the supply of metals is difficult and expensive to inflate through mining. Because the dollar will be worth less, you will need more dollars to buy the same 1 ounce of gold or silver, which, in effect, will raise the value of your gold and silver investments relative to your income and purchasing power. For this reason, investing in gold and silver will keep your money safe over time. As the economy weakens, more and more people will be forced to invest in gold and silver and the increase in demand will increase the relative value of your coins as well. The sooner you can afford to invest in gold and silver the better.
#2. How to Invest in Gold or Silver?
The easiest and safest way to invest in gold and silver is to buy coins online from a reputable and fair exchange. Unlike local stores in your city, the online metal exchanges have to compete with a wider market of sellers and, consequently, offer the best prices. All you’ll need is access to the internet, a credit card, personal check or a bank wire. Gold is very expensive. Right now you can get about 50 silver coins for the price of 1 gold coin. So which should you buy? In the long run, silver is likely to appreciate more than gold because its price is more depressed at present. However, storing 50 silver coins is more difficult than storing 1 gold coin. It’s up to you to decide. Both investments in gold and silver will keep your money safe for the future.
#3. What If You Have Very Little Money?
Because the price of gold and silver is constantly rising, it’s a good idea to start investing in metals as soon as you can. If you have very little money, invest in silver instead of gold. Buy a few coins every month for as long as you can afford to. It’s best to buy pure 1 ounce coins rather than partial ounce coins (which I’m seeing less and less of anyway). 1 ounce coins will retain their value better overtime and make a safer investment.
#4. Should You Wait for Prices to Fall?
The price of gold and silver will continue to rise, though with minor momentary fluctuations. You can watch the prices and choose your best moment but remember that in the long run it will make little difference if you pay a handful of dollars more or less. As the prices continue to double, then triple and so on, the few dollars that you lose now will seem like peanuts. When you invest in gold or silver keep in mind that you are doing so to set money aside for your future in an uncertain economy. I think that investing now will take a burden off your shoulders which is worth every penny.
#5. Which Coins Should You Buy?
As long as you invest in gold and silver in the form of pure 1 oz. coins, it doesn’t matter if you buy the South African Krugerrand, the Canadian Maple, the American Eagle, the Austrian Philharmonic, etc. These only matter when you collect coins for their intrinsic (collector) value. Since you are investing in gold and silver for their monetary value, buy the coin that’s priced best per ounce for that day. If you buy uncirculated coins, these will typically be more expensive than circulated ones, which may offer you a better price per ounce.
#6. Where Should You Buy Gold Coins Online?
My article about buying gold coins online reviews my favorite venues for safely investing in gold and silver coins. You can buy gold and silver coins online or in person at state minting facilities. APMEX is my favorite online exchange for buying and selling gold and silver investment coins. They even take credit cards. Goldline is another excellent metal exchange. My article will provide you with the exact purchasing or selling data you need.
#7. What Does “Over Spot” Mean?
When you look at the price of investing in gold and silver coins, you’ll see the term “over spot” with a dollar figure next to it. This means that the exchange selling the coins is adding a surcharge for each coin over and above the value of the metal itself. Thus, if you hear on the news that gold is now valued at $1400, that doesn’t mean that you can buy a gold coin for that price. The price of investing in silver and gold coins includes the base metal price plus the “spot” charge indicated by the exchange.
#8. How to Get Bargain Prices?
No exchange is going to sell you gold or silver investments below the price of gold or silver on the stock exchange. But you can get bargains if the exchange is offering a discount on their “spot” charge per ounce. A good way to find out about these is to register with the exchange and get on their email list. Another way to get bargains is to buy bulk. Metal exchanges typically reduce their spot price per ounce if you buy bulk purchases of coins. This is especially valuable when you buy silver, which is far cheaper than gold coins.
#9. How to Select the Best Deal?
Log on to one of the reputable websites for investing in gold or silver coins (such as: APMEX or Goldline). Select to look at gold or silver coins, then click on the different coins to see their current price. You’ll notice that the price can fluctuate constantly until you select to put the item in your shopping cart. Then the price will remain frozen for a disclosed amount of time (for example, 10 minutes) to allow you to finish the transaction. Choose the 1 ounce coin that offers you the best price per weight at this time. Place it in your shopping cart and finish comparing prices until you’re ready to check out. Remember that shipping costs on silver coins will be higher because you’ll be buying more ounces per dollars spent and your order will be heavier. If you use a credit card to pay, there will be a fee associated with the purchase.
#10. How to Pay?
After you complete the online order your price will remain locked for the number of days disclosed by the exchange. Your purchase confirmation page will tell you how many days you have in which to send in a personal check or wire the funds from your bank. If the exchange offers a credit card payment option, that will be done automatically by the exchange. The coins will be shipped to your home address with insurance to cover you in case the coins get lost.
It’s best to keep your gold and silver coins in their original packaging to keep the coins pristine. If you have a heavy safe that a thief cannot walk away with, keep your coins there. Otherwise, keep them hidden safely. You can even use a safety deposit in your bank, to store you coins safely.