All About Investing In Gold & Silver Investment
Why Consider Investing in Gold and Silver?
Gold and silver have been used as currency for thousands of years and are the oldest forms of “money” in the world. Historically, gold was a symbol of wealth and opulence, while silver was used in more practical applications as coins, household accessories and silverware. Gold and silver use can be traced back to “Old Testament” times, where wealthy, powerful people were often identified as being bejeweled with gold, and there are even mentions of gold as an offering to God! While we don’t often offer up our gold to God anymore, it is still a very precious commodity and both gold and silver are considered a wise and solid investment.
Why are Gold and Silver so popular with Investors Today?
There are a number of factors that make gold and silver attractive to investors in unsure economic times such as these.
Unlike stocks, bonds and even paper currency, gold and silver prices are fixed and do not fluctuate the way that other investments do. For example, currency actually depreciates as more and more is created. With gold and silver, demand starts to surpass supply and the value goes up. As an example, gold prices fell somewhat after the boom in the 1980′s, but after the economic crash in 2007 – 2009, it has shot back up to an almost record high again.
Precious Metals are a Tangible Asset
When you invest in stocks or shares of a company, you are at the mercy of the stock exchange on a daily basis. You also have no control over that company’s future. Anything could happen to make their stock values plummet and there is nothing you can do but watch. You may think that currency is a tangible asset, since you can see it, touch it and hold it in your hand. Not so. At the end of the day it is just a piece of paper. Currency today, at least in the U.S., has no gold or silver backing anymore. They just print bills that have a perceived value and those values can change at the drop of a hat.
Investments in Gold and silver, on the other hand, are tangible assets that do not devalue in times of crisis, war or disasters. In fact, gold and silver are two of the only assets that are likely to increase in value during uncertain times! There are limited gold stores in production and since it is not likely that we will discover any more huge gold deposits any time soon, what is in production today is in high demand.
A Different Twist on “Hedge Funds”
When it comes to inflation, it’s all about purchasing power. When you think about what a dollar bought you just 30 years ago vs today, it is very obvious that today’s dollar does not have anywhere near the purchasing power it did then! Remember going to the store as a child with a dollar and coming out with a bag full of goodies – a soda, a bag of chips, and a big bag of candies? Today your kids might get four or five candies and that’s it.
Now think about gold. Back in Old Testament times, an ounce of gold would buy about 350 loaves of bread. Guess how many loaves an ounce of gold will buy today? About 350. That’s incredible when you think about it! An ounce of gold has the same purchasing power today as it did 2500 years ago. Mind-boggling, really.
So, if you are looking for an inflation hedge fund, gold is about as good as it gets.
Gold 401K rollovers
Since Gold and Silver are a very stable investments in an unstable world, transferring or rolling over your 401K to a Gold IRA can be a very wise move to protect your retirement investments. While there are other types of investments that can be good for the short term, gold and silver are sure winners in long-term investments. They are also much more stable and trustworthy than many other investment options.
A word of clarification is due here, as well. A rollover is when you take out your money from your 401K and put it into a Gold IRA yourself. This would typically occur if you were to leave your current employer. A transfer, on the other hand, is done “behind the scenes,” so to speak. You would direct your finance company or bank to transfer the funds for you. Be aware that in the case of a rollover, you are responsible to deposit your funds yourself to avoid penalties.
You may be thinking that investing in gold and silver is just for the wealthy. I mean, really, who has thousands of dollars lying around to buy gold bars with? Well, there’s good news for the rest of us – gold and silver coins!
There are several coins that are recommended as excellent investments, and they don’t cost the earth. Typically, pre-1965 American quarters, dimes and half-dollars are an excellent place to start. These coins that were minted before 1965 are 90% silver.
As for gold coins – American Eagle gold coins, South African Krugerrand s, Austrian 100 Coronaes, and Mexican 50 Pesos are excellent choices for getting started in gold coin investments. American Eagle gold coins are more expensive to buy than the other three, though, so you may want to do a cost comparison before jumping in.
Buying silver and gold coins is an excellent way to get started in precious metal investing because you can buy your coins in smaller quantities at first as you get extra money.
Gold and Silver Investing Information Conclusion:
Investing in gold and silver might seem like it is a complicated thing, however, if you get connected with a reputable online company they will be able to answer any of your questions and guide you through the process of investing safely in gold and silver.
Like any other sizable investment, make sure you do a little research online to check out the company your considering before investing with them. Look for things like testimonials, BBB accredited businesses, and again make sure you speak with a representative from the company.
Make a list of any questions or concerns about investing in gold and silver you may have, and make sure the person you’re speaking to answers your questions. Then after you feel comfortable with the company you can proceed forward and begin investing in gold and silver via some of the methods discussed above in this article!