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How To Buy Gold Or Silver !FULL!



Gold futures are a good way to speculate on the price of gold rising (or falling), and you could even take physical delivery of gold, if you wanted, though physical delivery is not what motivates speculators.




how to buy gold or silver



The biggest advantage of using futures to invest in gold is the immense amount of leverage that you can use. In other words, you can own a lot of gold futures for a relatively small sum of money. If gold futures move in the direction you think, you can make a lot of money very quickly.


Risks: ETFs give you exposure to the price of gold, so if it rises or falls, the fund should perform similarly, again minus the cost of the fund itself. Like stocks, gold can be volatile sometimes, but these ETFs allow you to avoid the biggest risks of owning the physical commodity: protecting your gold and obtaining full value for your holdings.


But how can you invest in precious metals like gold and silver? While assets like publicly traded stocks have a fairly straightforward buying process, investing in gold and silver can be a little bit more complex, given the variety of ways to buy these precious metals.


The good news, though, is that you don't have to literally mine for gold to reap the potential benefits. There are several other ways to gain exposure to gold and silver in your portfolio, as we'll explore here.


But don't let the names fool you. You probably don't have to open separate accounts if you want to buy both types of metals. Generally, these are self-directed IRAs that allow you to purchase physical gold, silver, or other assets that qualify for the tax advantages of a regular IRA, and the bullion can be held in a depository.


But not all financial services companies offer IRAs in which you can buy physical gold or silver. So, if you have an existing IRA and don't want to open another one, you might instead invest in assets like gold ETFs through your regular IRA, rather than physical gold. Keep in mind though the risk that can come with speculating on precious metals, especially as you near retirement.


Fees are generally higher for specialized accounts like gold IRAs, compared with regular IRAs. A custodian for your account might charge a few hundred dollars per year in administration fees, depending on the bullion value in your account, compared with perhaps $40 or so (if not $0) with some regular IRA accounts.


However, fees can differ depending on what you ultimately invest in within an IRA, such as how mutual funds carry annual management fees. And fees for gold IRAs/silver IRAs can also vary, such as if the provider charges separate trading fees.


One of the easiest ways to buy gold or silver is to invest in gold exchange-traded funds (ETFs) or silver ETFs, which essentially trade like regular stocks. You can buy and sell ETFs through your stock brokerage. The ETF provider typically holds physical gold or silver bullion, and the value of those precious metals gets reflected in the ETF's share price.


Another way to invest in gold or silver is to get exposure via stock in mining companies. In theory, if precious metals prices go up, then companies that mine those metals would also increase in value, but prices can also depend on how these companies operate.


You can buy stock in specific mining companies, much as you would trade tech stocks, for instance. Or, you can buy an ETF that invests in a variety of gold or silver mining companies (or perhaps both). Fees for mining ETFs tend to be a bit higher than bullion ETFs.


Another option for investing in gold or silver is buying physical bullion, such as gold bars or gold coins, or silver bars and coins. Bars and coins can have designs/images on them, for which they are sometimes considered collectibles.


You can find some companies that sell physical gold and silver online and ship the bullion to you. However, this can be more expensive than other forms of buying precious metals. The prices of physical gold could be roughly 5-10% higher than the current trading price, if not more. Silver bullion can trade at even higher premiums, like 25% or more, though the entry point is significantly lower than it is for gold.


Plus, you then have to figure out how to safely store the bullion, such as in a safe in your home or at a depository. You can also find some physical stores that buy and sell gold and silver, but you also will often pay a premium there.


There are many ways to buy gold and silver, so consider what you're looking to achieve with these investments before picking a path. If you like the idea of physically owning gold or silver coins, for example, then you might go down that route, but if you prefer the liquidity and relative ease of trading stocks, then you might buy an ETF or shares of mining companies. Consider consulting with a financial advisor or trusted professional to see what's right for you. Learn more now!


In contrast, the key advantage of buying physical gold (such as bars and coins) is that you own the gold. Furthermore, you own an asset that can be stored outside the financial system, which reduces counterparty risk.


Counterparty risk is the risk that the other party in an agreement will default or fail to live up to its obligations. When investors buy gold ETFs, they are relying on financial institutions to deliver on their obligations.


While both gold and silver have attractive features, gold is the better investment for the average precious metals investor. Gold has a much larger liquid market that is driven mostly by investment and jewelry demand. The price of gold is less volatile than that of silver, too.


Meanwhile, silver is more speculative and has a stronger relationship to economic activity. This is because silver has many industrial uses. As such, silver can be attractive during down cycles when the price of the metal is cheap.


Investing in precious metals comes with some benefits over investing in stocks, such as being a hedge against inflation, having intrinsic value, no credit risk, a high level of liquidity, bringing diversity to a portfolio, and ease of purchasing."}},"@type": "Question","name": "What Are the Best Ways to Invest in Precious Metals?","acceptedAnswer": "@type": "Answer","text": "The best way to invest in precious metals is either to buy the metal outright and hold the physical form or to purchase ETFs that have significant exposure to precious metals or companies involved in the precious metals business.","@type": "Question","name": "What Is a Disadvantage of Investing in Precious Metals?","acceptedAnswer": "@type": "Answer","text": "Precious metals have no cash flow so an individual will receive no income. If an individual holds the outright metal, there is also a storage cost associated with the investment."]}]}] Investing Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All Simulator Login / Portfolio Trade Research My Games Leaderboard Economy Government Policy Monetary Policy Fiscal Policy View All Personal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All News Markets Companies Earnings Economy Crypto Personal Finance Government View All Reviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All Academy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All TradeSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.InvestingInvesting Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All SimulatorSimulator Login / Portfolio Trade Research My Games Leaderboard EconomyEconomy Government Policy Monetary Policy Fiscal Policy View All Personal FinancePersonal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All NewsNews Markets Companies Earnings Economy Crypto Personal Finance Government View All ReviewsReviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All AcademyAcademy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All Financial Terms Newsletter About Us Follow Us Facebook Instagram LinkedIn TikTok Twitter YouTube Table of ContentsExpandTable of ContentsGoldSilverPlatinumPalladiumFilling Up Your Treasure ChestA Good Investment?Precious Metals RisksPrecious Metals FAQsThe Bottom LineFutures and Commodities TradingMetals TradingA Beginner's Guide to Precious MetalsByBarclay Palmer Full Bio LinkedIn Twitter Barclay Palmer is a creative executive with 10+ years of creating or managing premium programming and brands/businesses across various platforms.Learn about our editorial policiesUpdated May 25, 2022Reviewed byThomas Brock Reviewed byThomas BrockFull BioThomas J. Brock is a CFA and CPA with more than 20 years of experience in various areas including investing, insurance portfolio management, finance and accounting, personal investment and financial planning advice, and development of educational materials about life insurance and annuities.Learn about our Financial Review BoardFact checked byKirsten Rohrs SchmittGold and silver have been recognized as valuable metals and were highly coveted by ancient civilizations. Precious metals still have their place in a savvy investor's portfolio in modern times. But which precious metal is best for investment purposes? And more importantly, why are they so volatile? 041b061a72


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