For the average twenty-year-old buying property sounds like a daunting task. The down payment on a house or plot of land can easily exceed $10,000. So for many, investing seems like something that’s simply out of reach. However, there is hope in stocks, bonds, and the oftentimes overlooked the precious metals market.
Precious metals have historically been a safe store of value purchased by investors to secure the value of their assets through hard times. Unlike currencies, there is a finite amount of gold or silver in the world. Buying precious metals is a great way to start investing in your future.
Why Buy Gold?
At the start of the 2008 world financial crisis gold was around 972 dollars and by mid-2011, deep into the crisis, gold had skyrocketed to 1,800 dollars, which allowed investors to nearly double their money in just 3 years.
Why Buy Silver?
Just as gold soared up from 2008 to mid-2011, silver more than doubled! And the price of buying an ounce of silver now sits at a spot price of just above $ 15. Some economists believe that it could be possible to have a price of up to $500 per oz of silver in the next silver bull run.
Silver is a resource with industrial uses. This means that silver is essential for the production of computer parts and even medicines. Silver ions act as a catalyst by absorbing oxygen, which kills bacteria by interfering with their respiration. This antibiotic property, along with its non-toxicity, has given silver an essential role in medicine for thousands of years. Because there is a finite supply of silver in the world, as silver resources are used they will become rarer. The rarer a resource, the higher the value.
How and When to Sell Your Gold and Silver? (Taking Profits)
You can sell gold and silver in most pawn shops, or coin shops. In most cities, there is at least one, if not a dozen, shops that buy and sell gold and silver. Typically their signs will say in big yellow letters, “WE BUY GOLD”. You must understand that when you buy silver or gold, you likely will pay slightly above the SPOT price. The SPOT price is the current market price. However, the vendor you are working with also has to turn a profit. So they likely will buy for slightly under spot price from sellers and sell to buyers like yourself for slightly above spot. You always have the online option but selling is typically easier in person.
You should sell your silver and gold when it reaches a price point that you are waiting for. Like any other investment, you should set a time-frame or a price point that you want to sell your investment in. If you bought silver at a spot price of $15 you might choose to check the spot price occasionally until the price reached $22 and then you would take your $7 in profit per coin by selling the coins.
How to You Buy Precious Metals?
The easiest way to buy precious metals is to do so online. It is easy buying gold bullion in Australia to get better rates. It’s important to buy from a trusted vendor online because there are lots of scams in the silver and gold market. Do not buy silver bars that are plated or gold plated coins as investments rathe. Actual investments in silver or gold should be in the form of solid coins with a purity of 99.9%. The oils on your hands can tarnish silver coins so it is important to wear cotton gloves when handling them.
Safe places to keep your silver and gold coins:
- A safe located inside of your home
- Inside of a bank vault/safety deposit box
- In a hidden area of your home (not easily accessed)