Is Buying Gold And Silver Really The Best Option?

buying gold or silver

Buying Gold or silver is a way investors use to diversify their risks. Gold has been trade of by economies during time of econominic weakness. This is considered as a way of increasing one’s investment portfolio. An interesting statistics holds out gold as the only currency that has never failed for thousands of years. It times of crisis god and silver investments can be the safest means of investments that guarantees wealth creation or sustenance.

buying gold or silver

Buying gold and silver is not a straightforward thing. As an investor you need to know your industry well as well as the pitfalls to avoid.
Few things to know when buying Gold or silver
1. Their price is usually dependent on their demand or sentimental value placed upon their preciousness rather than supply.

2. Before buying Gold or silver you have to indentify a reputable dealer from where you will buy. You also have to be sure of the safety of the Gold or silver bars because once you loose them, be prepared for a great loss. People can buy Gold or silver bars from reputable companies but most of these companies do not let their clients touch their valued assets. You will trade with them without having a physical contact with your gold bars or coins or silver bars or coins.

3. You need to keep track of the market in order to land on the best deals possible.

4. Beware of counterfeits. It’s very easy to fall in the arms of unscrupulous precious metal dealers

Advantages of Buying Gold or Silver
1. Their prices tend to shoot up while the prices of other investments decline
2. In worst scenario where the currency has been devalued or when there is serious inflation, you can use Gold or silver to buy and sell.
3. They are meant to protect against inflation.
4. They are incredibly liquid in nature and are recognized all over the world and therefore they are easy to convert into money.

Disadvantages of Buying Gold or silver
1. Unlike stock or bonds these products are not designed for company growth.
2. these kind of investments require utmost care and patience to reap from their surge in value
3. Though Gold coins are heavily liquidating in nature gold bars may not be easily converted to money incase of economy lapse. Gold bars are usually big and represent large chunks of wealth which must be melted and therefore are not best option of doing business in a situation of economic lapses.
4. Due to the preciousness of these metals there are other costs which are associated with buying God or silver such as storage and insurance which makes the cost of this venture expensive.
Buying Gold or silver may be desirable for the purpose of increasing one’s investment portfolio. It should not be one’s main focus of investments. It’s a venture that needs a meticulous way of treating the market. Their nature of liquidity makes them increasingly desirable to buy or sell.
This business requires someone who is already in the market who can deal directly with buyers and sellers otherwise you may have to deal with a third party gold firm to facilitate your transaction which often attracts a rate of premium . This is therefore not a profitable venture for a casual investor.