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BEGINNER’S GUIDE TO GOLD AND SILVER BULLION INVESTING

Investing in gold and silver is an incredibly broad, complex topic with many facets. As with any investment, those considering buying gold and silver should perform extensive research from several credible sources to ensure they’re making a choice that will grow and protect their assets.

We can, however, provide you with some basics that may give you a better understanding of what’s involved.

gold-silver-bullion-investingWhy do people buy gold or silver as an investment strategy?

  • Many people are concerned about the stability of global economies. They view precious metal ownership, especially physical possession of gold and silver, as a reliable shelter for wealth that will insulate them from future banking crises.
  • There are a diverse array of opinions regarding the strength of the dollar and its standing as a reserve currency for foreign banks. Some investors and advisors view precious metal ownership as a safeguard against the potential for a falling U.S. Dollar.
  • Although there are a wide range of opinions regarding gold and silver ownership, there’s one point almost all investment professionals agree on: the importance of diversification. Holding a percentage of your retirement savings or assets in gold or silver helps with portfolio diversification and ensures you’re not relying too heavily on one investment vehicle.

Is buying physical gold and silver the only way to invest in precious metals?

No, there are in fact several ways to invest in precious metals.

You could choose to invest in gold and silver mining companies themselves. The performance of those stocks is tied in large part to the current price of gold or silver. Investing in producers is significantly more complicated than owning physical gold or silver though. These companies are only profitable when the cost for them to pull an ounce of gold out of the ground is less than the cost of that ounce itself. There have been many periods where that wasn’t the case, and these companies pretty much stagnate until the commodity price of gold or silver makes production once again profitable.

There are also gold and silver exchange-traded funds (ETFs). In broad terms, ETFs hold assets, and different types hold different asset types. There are ETFs that hold nothing but gold or silver, so their value is tied directly to the current price for gold or silver.

Depending on your motivation for buying gold, an ETF may or may not be an attractive option. If you’re worried about global market and political instability, you’re probably better off owning physical gold.

If you’re considering precious metal investments because you want to hold something tangible and don’t want to worry about the transparency of the institutions with which you’re investing, then you’ll probably want to avoid ETFs and stick to a physical thing you can hold in your hand and to which no one else lays any claim.

Where can I buy gold and silver in the Seattle area?

Where you buy gold or silver is just as important as how you decide to invest in it. If you buy gold at an unfair price your investment has already been compromised, because you just bought an asset worth significantly less than the price you paid.

Finding a trusted, reputable partner from whom to purchase gold or silver is absolutely essential when and if you decide it’s the right investment option for you.

Bellevue Rare Coins employs experienced gold experts at our Bellevue, Lynnwood, West Seattle and Issaquah locations. We are committed to ensuring every client feels they were treated fairly, which is why we are constantly monitoring the spot price of gold and silver and are always happy to sit down with potential gold and silver buyers to explain the relative strengths and weaknesses of different types of precious metals they could buy.

If you’d like to learn more about buying or selling gold or silver, we encourage you to contact the Bellevue Rare Coin location nearest you!

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