If you are looking to purchase physical precious metals, you have some choices to make. Gold, silver, platinum and palladium can all be a potentially useful addition to a portfolio. In addition to choosing what precious metals you want to buy, you will also need to decide what products may be best such as bars, coins or rounds.
A common question among those new to precious metals investments is: “Should I look at gold or at silver?”
We feel the answer is simple… You should be looking at both…
Often times, however, those new to precious metals investing may be on a limited budget. Others may simply be looking to get the most mileage out of their investment dollars. While there is no “right” or “wrong” answer, this brief article will discuss both metals to help you make the best decision.
Gold is the most widely recognized of the precious metals family. Gold has been a reliable store of value for thousands of years and is often cited in various historical texts. Governments, kings and others have coveted this precious metal for its inherent value and symbolism.
Gold retains its symbolic nature today and is exchanged all over the world. Gold carries no counterparty risk and is considered by many to be “real money.” Gold is usually quoted in dollars-per-ounce, and an ounce of gold in the U.S. is worth the same as an ounce of gold in other countries.
Gold can be purchased in bar, coin or round form. American gold eagle coins, for example, are some of the most popular gold coins in the world. Investors also like bars in various sizes from one ounce to 400 ounce bars.
At current prices, however, some investors may see the cost of gold as a barrier to entry. Fortunately, gold bars and coins can be purchased in fractional sizes such as 1 gram or 1/10 ounce.
The ability to purchase gold in such small quantities can remove the barrier to entry for most and can allow investors to begin building their precious metals holdings even on a tight budget.
Silver is another extremely popular precious metal that is sought after by investors. Like gold, silver has a long history of wealth storage and reliability. This metal also carries no counterparty risk and is transacted all over the world. Silver is also considered to be a form of money and has been coveted by governments, kings and others for centuries.
Silver is also usually quoted in dollars-per-ounce. The “white” metal is available in bar, coin and round forms. Silver coins and rounds are extremely popular. The American silver eagle coin, for example, is the most popular silver coin on the market today.
At current price levels, even the smallest of investors can begin to build a precious metals portfolio. Less than $20 per week (at current prices) will buy an ounce of silver in coin or round form, and a one ounce silver bar can currently be purchased for even less. Like gold, silver is also available in fractional sizes essentially making the metal affordable to any investor.
Silver has one thing that gold does not, however. Silver is widely used in modern industry with more uses for the metal being implemented all the time. Because of this, silver could potentially outperform gold during periods of robust economic activity.
The bottom line is this:
Both gold and silver can potentially help protect wealth and purchasing power. Both carry zero counterparty risk and both are considered by many to the truest form of money. These precious metals may potentially offer a hedge against inflation, declines in currency values, geopolitical and economic risks and more.
Like any other type of investing, diversification may be wise. That being said, however, silver can be an excellent choice for those on a tight budget who are just starting to acquire precious metals. The most important thing is not whether you buy gold or silver but that you just start buying. We feel current prices represent and excellent opportunity to begin investing in these precious metals. Don’t wait for prices to rise. ACT NOW… You can even use your IRA account to begin investing today.
Please reach out to our experienced precious metals executives with any questions that you might have about investing in gold or silver and the process of setting up a gold or silver IRA. Call us today at 1-800-341-8584 to get started.