How to Invest in Gold and Silver

invest in goldOur economy is often uncertain and unstable. We’ve seen what were once considered solid assets crumble and devalue in front of our eyes. And yet over the years, we’ve also seen consistent growth and business from individuals looking to learn how to invest in precious metals.

Gold is hitting record levels, and investing in gold has grown in popularity across the globe. Even after the financial crisis in 2008, gold held its value and then some, growing while most other economic investments collapsed.

Unlike stocks or mutual funds, precious metals are tangible and can be stored and managed yourself. We want any customers who are interested in preserving their wealth to come in store and meet with our professionals to learn about their investment options. Whether you want to buy gold or silver to sell in case of an emergency, or invest in gold or silver as a part of a long-term investment portfolio, at Doylestown Gold Exchange we can teach you how to invest in precious metals. Maybe now is the time to start buying gold and silver. Here are some tips to get you familiar with the practice.

A Physical Asset: Bullion and Coin

Buying gold is the most direct contact an investor can get with a physical asset. Whether you buy bullion or gold coins, be aware that if you purchase large quantities you may end up paying fees that can quickly add up. There are hidden costs sometimes associated with insuring and transporting gold. But there is no substitute for your own personal stockpile of precious metals. You can often find lower markups when you purchase 20 ounces or more of gold at a time.

One of simplest and most affordable ways to purchase gold is with bullion coins like the American Gold Eagles, Canadian Gold Maple Leafs or South African Krugerrands. These are all legal tender that’s widely used and guaranteed by their governments. It’s a secure and sure option that you can always sell at the drop of a hat.

Shares of Gold-Mining Firms

If you don’t want to deal with the hassle of storing gold or silver coins, you may want to consider buying shares of gold-mining firms. When you purchase shares through gold mutual funds, mining companies provide a slight advantage over coins: dividends. Though these only average to a modest 1%, the often-volatile metal market price can lend to big rewards, or risks. Precious-metal equity funds are not for those seeking very stable, predictive price fluctuations. The faint of heart, look somewhere else for investments. These funds usually require a minimum purchase of $1000 to $2500. It’s a different approach to buying gold that could give you a hefty profit.

Exchange Traded Funds

If you’re looking for financial security in case of emergency, Gold ETFs (Exchange Traded Funds) are like mutual funds that hold the physical commodity of gold. They are a better reflection of the value of gold bullion than shares of gold-mining firm, without the trouble of owning and storing the metal directly.

When it comes to buying gold and silver, you have a lot of options. There’s a good amount of information and literature to sort through, so take advantage of our skilled staff here at the Doylestown Gold Exchange. We offer 20 years of precious metals experience with customer service that can’t be matched. Make an appointment or stop in when you have a free moment for private consultation with one of our owners learn more about the gold and silver market. Together we can help you discover the best investment plan for you family and portfolio.