Updated July 2024:
With bitcoin and other cryptocurrencies gaining so much attention in the media as of late, many investors are questioning whether these assets are artificially inflated.
And while some are certainly making huge profits investing in these invisible assets, some people prefer an asset that they can hold in their hand. I know I certainly am.
If you’re like me, then you may be looking at investing in a tangible product like Gold and Silver.
There is just something about having a piece of gold or silver in my possession this gives me a sense of security.
As a somewhat newcomer myself, I am going to talk about how to invest in gold and silver for beginners.
Ready to start building wealth?
Disclaimer
Please remember that I’m not a financial advisor and this article is for educational purposes only. Every type of investment does have some type of risk and you are ultimately responsible for any type of losses or gains. The information in this article is meant to help you make an informed decision, but this is not financial advice from me.Â
Is It Better To Invest In Gold Or Silver Bullion?
So which is the best? Gold or Silver? One isn’t necessarily better than the other and I like to include both in my investment portfolio.
Gold is worth a lot more per ounce, so that makes it ideal for storage. Take a look at this photo which shows the same value of gold vs silver.
However, Silver is great because you get a lot more volume for your money. For a beginner investor without a lot to invest in, Silver makes a lot of sense.
Me personally, I invest in 70% of Gold and 30% of silver.
Uses Of Gold And Silver
Because Gold and Silver are considered rare and precious, this helps them increase in value. However, there are other uses for these precious metals that cause them to be valuable.
Uses of Gold
- Jewelry
- Awards and Medals
- Electronics
- Aerospace
- Dentistry
Uses of Silver
- Jewelry
- Automotive
- Solar Panels
- Batteries
- Media Storage
- Electronics
With so many practical uses for these metals, you can understand why they continue to increase in value year after year, decade after decade.
Which is better…Coins or Bars?
I don’t necessarily think Coins or Bars are better than the other, just different.
I invest in both.
I like bars because you can buy more volume per dollar. So in terms of value, bars are going to win.
But I also like coins because of the variety and potential to increase in value. Some coins are worth a lot more due to their rarity.
Another advantage of coins is that they are legal tender. I wouldn’t use them for that since they are worth much more being sold as a metal, but it is something to consider.
What Are The Benefits Of Investing In Gold And Silver?
When looking at precious metals, it can start to make a lot of sense why they are so popular with investors.
Here are a few benefits of investing in gold and silver
- Holds and increases in value (depending on the market)
- Helps fight inflation
- Increases in value during times of economic uncertainty
- Continues to increase in demand
- Diversifies your portfolio
While the benefits are certainly impressive, I do need to mention a few disadvantages to gold and silver investing
First, these precious metals take up space. A 1,000 oz silver bar weighs 62.5 lbs., so storage is something to consider.
Next, we need to talk about theft. Money in a bank account is much safer and more secure than gold and silver bars in your home.
Many gold and silver vendors offer bullion storage, but the extra cost of insuring and keeping your metals safe is something to also consider.
Lastly, we need to talk about value. Gold and Silver are just like any other investment. It goes up and down.
Like stocks, it is good to have a long-term time frame approach. But there is always some risk you could lose money, so keep that in mind.
Due To Inflation, Cash Is NOT King
You may have heard the famous phrase “Cash is King.” Cash is better than debt after all. But in terms of assets and investing, let us talk about why I think cash is not King.
Let’s face it. inflation is a real thing.
With the US government printing more money in the form of stimulus bills, this will cause inflation to increase even faster.
So how can we protect ourselves against something that we don’t have any control over? Investing in gold and silver could help you fight the effects of inflation.
Here’s why.
Let’s say we go back in time to the 1930s. You have a $20 gold coin and a $20 bill.
That $20 bill from the 1930s is still technically worth $20 today. But a $20 gold coin is worth around $1,700.
Regarding inflation, the $20 bill from the 1930s to now has lost 98% of its purchasing power while the $20 gold coin has gained over 8,000% in value.
So is cash really King? I think not…
My point here is that cash decreases in value as inflation increases. But Gold and Silver increase in value.
Here’s a graph to illustrate the value of gold in the past 30 years.
What Is The Best Way To Buy And Sell Gold And Silver?
If you’re as excited as I am to start and continue investing in gold or silver, then you may be wondering about the best places to buy.
There are many places to purchase or sell gold and silver. Pawn Shops, Jewelry Stores, and online vendors are all excellent places where you can purchase Gold and Silver coins/bars.
I like to support local businesses and go to a local gold and silver shop once a month. I also pick up silver coins at local coin shops when I travel.
In addition to that, I also purchase my gold and silver online from SD Bullion. They have fast shipping and the lowest prices I’ve found online.
Final Thoughts On Gold And Silver Investing
If you’ve noticed that prices are getting higher and are looking for a way to help beat inflation, gold and silver investing could be a way to help diversify and grow your wealth.
Like all investments, there is always a risk. With that said, I like to include some Gold, silver, and other investments after I max out my IRA and other stock investment accounts.
Related: 11 Ways To Invest Money For Profit
The great part about investing in Gold and silver is that you can do it on practically any budget. I started buying silver coins and bars as fun side hobby. With prices of a silver oz coin ranging from $20-$30, the price of entry is not that high. If you’re on a low budget, check out SD Bullion for all your gold and silver needs.
If you’re looking to build your retirement with Gold investing, I recommend checking out Birch Gold Group. They’ll send you a free kit on how Gold and silver investments can help protect your savings.
If you have any questions about silver and gold investing, please leave a comment below or reach out to me directly at nick{@}successinsteadofstress.com.
Thanks for reading,
Nick Hazleton
FAQs
What Are Precious Metals?
Precious metals are considered to have high economic value and be rare. This is why they are popular with investors.
Common precious metals include gold, silver, platinum , and palladium. While this article focuses on Gold and Silver, many of these principles apply to other precious metals.