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Tips For Buying Gold and Silver

by Alexander Vergara 3 months ago in investing

If you're looking to buy silver coins this year, you need to know what's going on.

Tips For Buying Gold and Silver
Photo by Austin Distel on Unsplash

Here are the top five reasons why you should get your silver coins in early, and what you should look for in silver coins to purchase.

1. The Price of Silver Will Increase

Silver is a precious metal and the price of this metal has been on the rise since 2001. For the last five years, the price of silver has gone up. Experts predict that in the next year, the price of silver will go up another 20% because of worldwide inflation.

By Jingming Pan on Unsplash

Because of this increase in price, people who want to purchase silver will look to purchase them from the early bird specials. The deals that give you as little as 15 ounces of silver for the price of a Mercedes can be found at the beginning of the silver bull market.

2. The Gold Price Will Increase

The price of gold is the second reason you should purchase your silver coins early. Gold's history has shown that when the price of gold goes up, so does the price of silver. The only time gold prices have gone down is when silver went up and vice versa.

3. Silver Is Being Used As Money

Silver is already being used as money all over the world. It's a commodity that's being used to buy goods all over the world. In America, it's already being used in places like Tiffany's and on the Super Bowl commercials. In less than 10 years, silver will be a commodity that's being used in any global situation.

So, you have your reasons to purchase your silver coins in the early stages of the gold or silver bull market. But if you are purchasing your coins to save for a rainy day, you have a better reason to buy your coins earlier. Here's why...

The price of a ounce of gold or a ounce of silver will go up tremendously during a recession. In times of recession, people will buy more gold and silver. The value of gold and silver coins will rise exponentially because people will choose to use them as a commodity. And when a commodity becomes a currency, its value will increase even more than before.

So, if you are trying to save for a rainy day, why not purchase your silver coins now? When the price of gold or silver increases significantly, your coins will be worth more than the price of a gold coin or a silver coin. If the price of gold goes up significantly, then your coins will be worth twice the value of the standard market price of gold.

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When the price of the currencies that you depend on go down, why not take your savings in a currency you can exchange for more goods and services?

If you want to buy gold or silver to have some tangible investment money, when the crisis is over, you can sell it when gold is at a premium and silver is at a discount, and get a higher return than buying gold and silver.

Another reason to buy gold and silver coins before they become too popular is the coins will serve as an inflation hedge. If you invest in gold and silver, you should watch the spot price on the commodities exchange. If the spot price increases significantly from the past, or if the future inflation forecast is poor, then your gold investment will be at a premium. It is better to have some gold coins than nothing.

A final point on gold and silver coin investment is that they can pay you more money per ounce than paper money. A new American Eagle gold coin will retail at about $600. If you invest $600, you can own a piece of gold that is $50 higher than the spot price of gold ($700) if the markets are good, and still $50 below the spot price if the markets are bad. Therefore, if gold goes up 10%, you can double your money ($800) whereas if paper money went down by 10%, you could lose money ($600).

When you purchase gold coins, you should think about your end goal. If you plan to resell gold and silver coins in 10 or 20 years, you should purchase gold coins before they become common. If you buy gold and silver as a commodity, or hedge against inflation, the best investment is probably a pre-1965 American Gold Eagle coin. With a 10% net present value, it can pay you $600 or more for each $100 face value.

By M. B. M. on Unsplash

Alexander Vergara
Alexander Vergara
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