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Best Way to Buy Gold & Silver

The Best Way to Buy Gold & Silver | Investment Guide

April 08, 20223903 view(s)

Silver and gold coins have been circulating in global markets in various forms for over 5,000 years. These precious metals have withstood the test of time and provide reassurance to one’s portfolio during times of economic turbulence, making them an appealing asset to invest in internationally. So, what is the best way to buy gold and silver in today’s markets? Depending on the customer’s needs and preferences, what each investor is looking for will be unique to their portfolio goals. The U.S. Gold Bureau is here to show investors how they can individually leverage gold and silver in their existing forms according to their investment criteria.

 

Three Worthy Candidates

 

When it comes to investing, precious metals primarily come in three forms: 

  • Gold and silver bars
  • Gold and silver coins 
  • Gold and silver paper assets

It is rare for an asset to be traded in its physical form on the commodities market, but such is the case for silver and gold. Being able to weigh and physically handle precious metals makes it easier to determine the actual value. While physical gold and silver assets are an option for investors, gold and silver paper options also provide an alternative investment strategy for buyers. Paper metal allows an individual to invest in gold or silver by allowing them to purchase documentation that indicates ownership of them. Regardless, physical precious metal assets permit more security and personal control over your precious metal investment, which gives them the upper hand.

 

Best Places to Buy Gold & Silver

 

Physical precious metals can usually be bought from an online dealer or through a local gold and silver dealer. While the in-person and virtual shopping experiences follow a similar process, there are some fundamental differences to be aware of when purchasing silver or gold. For some, the convenience of shopping online outweighs the hassle of having to go to a physical location with limited physical gold and silver asset options. Typically, due to lower overhead costs, online dealers can offer more competitive prices compared to brick and mortar shops. In both cases, you’ll want to check that you’re working with a reputable dealer. 

There is some risk involved in both shopping experiences. For instance, in local resale shops, the dealer may not be able to verify the authenticity of physical metal before selling them to their clients. On the other hand, most online dealers work directly with the mints and distributors that manufacture their merchandise.

 

Gold and Silver Bars

 

Bullion is a term used to describe precious metals that have been mined, refined, and shaped into blocks or coins. These blocks, or bars, are what most likely comes to mind when you think of gold or silver asset investments. Gold or silver sold in bar form are usually less expensive and closer to the commodities exchange prices compared to coins, making them an alluring investment type for buyers. Gold and silver bars are purchased per gram or Troy ounce, which is slightly heavier than a “normal” avoirdupois ounce by about 10%. Bars can be purchased in 1-ounce units, 10-ounce units, 100 grams, and 32.15-ounce units (1 kg). You can check the spot price on gold or silver online before making your purchase to simplify establishing your budget.

 

Gold and Silver Coins

 

Gold and silver coins are sold as either bullion (valued for their weight) collectible assets (which increase in value depending on factors like rarity, coin condition, and purity, rather than just their metal content). Rare coins can serve as an even stronger hedge against inflation as their value is partly tied to future speculations based on those variables. 

Note that you can invest in gold and silver “rounds,” which are like coins with no face value. They are not required to come from a sovereign mint, which usually means a lower overhead price for the precious metal rounds compared to coins. However, rounds do not feature collectibility, so there is no collectible/rarity value. 

 


Gold and Silver Paper Assets

 

Instead of holding silver or gold in their physical form, paper assets allow investors to purchase a paper asset that reflects the value of a precious metal. Gold and silver paper investments include: 

 

  • Exchange traded funds, or ETFs. These collective precious metals trusts allow numerous investors to buy shares. ETFs can be purchased or sold on a stock exchange the same way that a regular stock can.
  • Mining stocks. These allow you to invest in gold and silver shares through the stock exchange via gold and silver mining companies. 
  • Futures contracts. Futures are a type of derivative-based asset that enables investors to anticipate purchases ahead of time. The investor and seller must agree ahead of time on a set price to buy or sell the asset, regardless of the current market price at the expiration date.

Investing in Gold and Silver with U.S. Gold Bureau

 

With so many options to leverage when it comes to purchasing gold and silver, making a decision can feel overwhelming. That’s why each of our precious metals specialists has been through an extensive training program to be well equipped to assist you at all stages of the precious metals investment process. We offer high-quality, investment-grade precious metals assets as well as a place to safely store them in the only state-administered precious metals storage facility in the country–the Texas Bullion Depository. We aim to lead the precious metals industry, providing investors with outstanding services and products.

Schedule a consultation today with one of our precious metal experts to learn more about how to purchase gold and silver.

 

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