Why Gold & Silver, Why NOW!
When there is turmoil in the world, people turn to gold and silver as a kind of a safe haven. Well I think there is plenty of turmoil in the world right now, so it definitely makes sense to have some of your portfolio in gold and silver.
Gold and silver, which have been rising lately, are likely to rise even further. Precious metals rise when there is inflation or fear of inflation. All of the central banks around the world such as the Federal Reserve, the European Central Bank and the Bank of Japan, have been printing trillions of dollars to offset the deflationary impact of the coronavirus pandemic. At the moment, it seems like the deflationary forces are stronger than the inflationary ones, but many economists think that in the long run all of that paper money is going to erode the value of currencies and investors are going to want to put their money in hard assets like gold and silver as a hedge. In the long term, the supply of new gold and silver has been declining and demand has been rising, particularly from central banks.
There are several ways to buy gold and silver. First is to buy physical gold and silver coins or bars, which you can either take possession of, or store in a gold vault. You want to buy bullion coins which trade at a slight premium to the gold spot price. Numismatic coins, which commemorate specific events, have a huge markup to them, so it makes it difficult to make a profit even if gold prices rise.
To get the best price on your coins or bars, visit my affiliate Hard Assets Alliance which offers several competing dealers which get you the best price when buying or selling. Another affiliate gold dealer is Money Metals Exchange so look at their link to see what prices they are offering these days. If you would like to earn up to 5% interest on your gold holdings, contact my affiliate Monetary Metals for more details.
Hard Assets Alliance: https://www.hardassetsalliance.com/?a...
Money Metals Exchange: https://tinyurl.com/y7jmwbra
Monetary Metals: http://goldyield.monetary-metals.com/mar
If you don’t want to take possession of precious metals, you can buy Exchange Traded Funds that control vaults of gold and silver. The ETF for Gold has symbol GLD and the one for silver is symbol SLV. The other way to invest in gold is through gold mining stocks or funds. Gold mining stocks move up and down much more than gold itself so you should be ready for a very volatile ride. A gold mine’s costs remain relatively stable, so when the price of gold goes up, the mine’s profits rise sharply. The easiest way to buy a basket of the biggest and best gold mining shares is the Exchange Traded Fund with the symbol GDX. If you want to take even more risk, the symbol GDXJ owns all of the junior gold mining shares.
In today’s volatile world it therefore makes sense to own at least 5 percent, and more likely 10 percent of your holdings in gold and silver so you can benefit if inflation takes off again.
As a personal finance expert, Jordan recognizes quality solutions, forming affiliate relationships to help improve people’s financial lives.