In an economy that is constantly fluctuating, the one thing that has been able to provide a semblance of security and stability is investment in gold. It is the only form of money that has never failed to serve its purpose. With the current amount of investment gold available in the world, every living person would be able to have only 1/3rd of an ounce if it were evenly distributed. In the time of economic crisis, gold has always had a proven track record of being the best form of security. Investment can be entirely private and if necessary anonymous as well. It also has a great sense of portability to it.
Besides gold, another precious metal too has risen in the ranks over the past couple of years. Known as the miracle metal, silver stands in second position only to oil as an important commodity. Besides being used for monetary purposes, silver also has a number of industrial uses considering it has some great properties allowing it to conduct electricity, thermal energy and even have reflective properties that are unrivaled on the planet. Silver inventories are running low right now with almost all of the metal mined being consumed for various purposes.
Are you a collector or an investor?
One of the key ways to invest in precious metals is to buy coins or bullion that you can store for use at the right time. Rare coin investing is one way in which this can be done. However, you will need to ask yourself whether you are making the investment as well as indulging in a hobby where you will be seeking out coins to complete a collection or are you only investing in coins to keep them aside for a rainy day?
If you are looking at coins as a means of investment, then here are a few things you need to keep in mind:
Opt to purchase bullion instead of rare coins as these come with a premium.
Make sure that your purchases are delivered to you and not stored on your behalf.
There should be no waiting period for the delivery of your bullion.
Those who invest in gold and silver can also consider their coin collection to carry a premium, and should the need ever arise, it will definitely serve the purpose of being an ideal financial hedge.
Investing in gold
Investing in gold does not only have to be in the form of bullion. There are several ways to go about it. What is important is that you do your research on the places where you plan to buy. Reputation of the seller and the quality of gold that comes from them is something you need to consider.
Here are some ways in which you can invest in gold:
Stocks and Funds of Gold: A common way of investing in gold is to buy stocks or funds from a gold mining organization. You can do this via a brokerage firm. These give you a great deal of liquidity, and you do not have to worry about safe storage. However, there is the inherent risk associated with this form of investment since the price of gold will be dependent on the markets.
Bullion coins: These can be bought in precious metals of gold, silver and platinum and are differentiated on the basis of weights. They are created in the form of ingots or bars. There are authorized dealers and banks that sell this to you. Coins are also invested in, for the sake of storage till the right time. They are never used in daily transactions. The prices for them vary through the day.
Collectibles: Historic or ancient coins are generally made of precious metals and have an inherently great value to them as well. They need to be bought from authorized sources like Monaco, among others if you want to have something worthwhile in your collection.
What you should know about investing in gold
No matter what form of gold you invest in, there are a few fundamental truths that you need to understand about it.
Gold does not come with a guarantee on the way its value is headed. It fluctuates all the time and often does so within a day. That being said, it is still among the most stable of investments.
In all cases where you are buying your bullion from authorized sellers or even banks, you are going to be paying more than the value of the gold. It would be wise to make several price comparisons before settling on one.
Keep in mind that there are no State or Federal laws in place that allow the government to confiscate gold. Nor will it be confiscated if not reported. These are all rumors.
Investing in silver
Research shows that in the year 2010, investors in precious metals received a 42% return and this is only poised to grown with each passing year. Silver stood tall among all other precious metals, with its price going up by around 80% in 2010. Gold, in comparison went up only by 29% that year. The first quarter of 2011 saw the price of silver remain steady at 9.3%.
Some of the parameters you should consider when investing in silver is
The purity of the metal is important if you are to get its true worth
Buying it in a form that an easily be liquidated is also equally necessary
Follow the precious metals market on a regular basis. Fluctuations are present each day, but they are not as severe as other investment instruments. You will soon be able to understand how much your investment is worth.
The price you purchase at is also important if you want your bullion to be profitable for you.
And last, but not the least, finding a dealer who is honest and will give you exactly what you are entitled to is essential.
No matter in which way you choose to make your purchases, ensure that the products are dispatched to you instantly. Once you receive, do have them evaluated to check on authenticity. Storing your bullion with the company that is selling to you is not a good idea. If they happen to go bankrupt, you will never see your investment again.
Investing in precious metals has to be done the right way, with close attention being paid to the market.