Basics of Investing in Gold and Silver FIX
In this section of our "How-To" guide, we'll share with you a vertical strategy for buying Gold, Silver, and U.S. Rare Coins. We'll briefly show you the benefits and profit opportunities we see in each unique segment of the market.
Always Start With Gold Bullion
Most people hear the term "Bullion" and think of giant Gold bars from the movies. In fact, bullion refers to a coin or bar that trades near the price of its respective metal and will go up, or down, with the market price of that metal each day. We typically offer 1 ounce Gold Bars but they do come in a range of sizes.
Most Gold and Silver prices are quoted in the cost for one troy ounce. Modern Gold Coins are bought and sold in One-Ounce increments with some in half, quarter, tenth ounce weights. Silver is often traded in One-Ounce Coins, Ten-Ounce, and 100-Ounce Silver Bars. The most popular forms of modern Gold Bullion today are shown to the left. PHOTO MISSING
You should be able to acquire most of these items for small premieums over the prevailing "spot price." It's not possible, even for a huge dealer, to buy tradable Gold at the spot price you see in the paper or on TV. That price refers to futures pricing or is a quote for a 1,000 ounce Gold Bar for delivery in London. (This is the wholesale cost of Gold used in manufacturing or jewelry, not for finished Gold coins or bars.)
The premiums you pay over the "wholesale price" includes what the mint charges to convert a huge 1,000 ounce bar into 1,000 small coins plus shipping, handling, and distribution fees. In most cases, a portion of those can be recovered at the time you sell.
Silver is Undervalued and Often Overlooked
Beyond Gold, we often recommend Silver coins. We love Silver. Most Americans love Silver and always have. Many of us can recall a time before 1964 when U.S. Dollars, Half Dollars, Quarters, and Dimes were minted in 90% fine Silver.
Back in the 1960's you could walk into any Federal Bank and demand that they take back their paper money and give you genuine U.S. Silver Dollars. Not so today. However, you can still trade paper dollars for beautiful, large Silver Dollars in the form of American Eagles which contain one troy ounce of pure Silver.
???Our next most popular Silver Bullion Coins are Canadian Maple Leafs. They also contain a full troy ounce of Silver and have a $5.00 Canadian face value. We’ve also sold a variety of China Pandas in recent years.
Based on our recommendations since ???, thousands of our clients have doubled their money in recent years holding Silver. Those who were with us since the low in Silver prices back in 2001, have quadrupled their money in Silver. FIX ALL OF THIS
The 2013 correction for Silver was a harsh one. But, this is also an opportunity to price average and acquire Silver at XXXX prices. In our opinion, it’s far more likely that Silver will double in price in the coming 18-36 months than it is for Gold.
One interesting note– Premiums charged over the value of the Silver alone will rise and fall on newly minted, modern Silver Dollars. There was a two month stretch in late 2008 and again in 20?? when the overwhelming demand for physical Silver Coins outstripped the supply. The U.S. Mint, with its buying clout, could not find enough Silver to strike coins to meet the demand. Premiums over their Silver value alone rose dramatically. Thankfully, premiums have normalized. We recommend you avoid buying Silver in these temporary tight market situations as premiums drop rather quickly.
Silver investments are also traded in 100-Ounce Bars or One-Ounce Rounds. These are privately minted at respected refiners and trade at a lower cost-per-ounce than Silver Eagles or Maple Leafs. They are not Government guaranteed as to weight or content like Official Legal Tender, Modern Silver Coins. Occasionally, bars and round come it to us at lower prices and can offer a great value in the current marketplace.
Buy Bullion for Safety, Security, Insurance
We like to think of these Gold and Silver Bullion holdings as the foundation our clients should build upon first. They usually move opposite the U.S. Dollar and other paper currencies. As the U.S. Dollar loses its buying power through excessive money printing, Gold has typically risen in value.
As inflation eventually takes hold or hyperinflation, we expect the value of these metals to increase dramatically, rapidly, unlike anytime we’ve ever experience in American. In times of financial crisis and hyperinflation, Gold and Silver have proven to be reliable stores of value since they rise in price as the paper currency loses buying power.