Do you want to invest your finances in the long run? Are you looking for a conservative investment with the potential for appreciation in double digits? Investment in precious metals, such as gold IRAs and silver IRAs allow you to do precisely that! Investment in both of these precious metals has grown in recent years and there are very few comparable commodities. Find out more about the opportunities and advantages of both of the metals to decide which one is suitable for you and your needs.
Investing in Gold
One of the most important steps when investing in this precious metal is to choose the right investment venue. Reviews of customers are key here. A quality precious metal IRA company will provide all the necessary know-how for successful investment in gold.
Gold is recommended by almost all economists as a lasting value in the turbulent waters of the financial markets. Mankind began to use this precious metal as currency around 700 BC. Although it is not common today to pay in gold, its liquidity remains very high.
Gold is a guarantee of value. Most domestic households prefer traditional investment instruments, such as building savings or supplementary pension insurance. But it is common knowledge that the best way to avoid future risks is to save your money in more ways.
The two main advantages of investing in this metal are that its ingots can be monetized practically all over the world. No currency in the world has served as a universally respected currency for as long as gold. The second advantage is that the price of gold is rising and there is little doubt that it will continue to do so in the future.
How to Invest in Gold
The investment horizon should exceed at least 5 years when investing in gold bars or coins. Their purchase is often seen as a generational matter or an alternative to retirement savings. In these cases, the function of gold as protection against the devaluation of funds becomes more important.
The most popular investment instruments are gold bars, or so-called ingots and gold coins. Read more about ingots here: https://en.wikipedia.org/wiki/Ingot. Brick-shaped ingots offer the best price per gram but are 100% dependent on fluctuations in the price of gold on the stock exchange. Coins are their favorite alternative, they are divided into investment and commemorative. Especially with the commemorative ones, you also gain collector’s value and a low cost, which, if the coin is sold out, dramatically increases its value.
Investing in Silver
While gold is the most common investment metal, it is a good idea to consider silver as well. Silver is also an excellent investment tool and the number of conservative investors who prefer it to gold is growing. In addition to the long-term potential for recovery, it also offers the unique advantages of industrial metal.
As much as 85% of the world’s silver production is in the industry – it is the second most used industrial commodity ever. Today, the only source of physical silver is mining, which cannot simply be increased – deposits are dwindling and costs are rising every year. The consumption of silver thus exceeds mining in the long run, and while maintaining current production, its reserves will be extracted in 20 years. Therefore, silver prices must naturally rise.
Why Invest in Silver?
Silver is a store of value. Only 15% of silver production remains for investment. Silver is bought for investment because it is insured against inflation or unpredictable political and economic turbulence, it is a secure store of value, and also it is highly liquid, so it is common for precious metal dealers to buy it from the investor.
Buying investment silver should be seen as a long-term to a generational affair – for example, as an alternative to retirement savings. Read more about investment silver. In this case, silver acts primarily as a protector against the devaluation of funds and is a good investment.
Investment ingots are available in many different weights and sizes and are highly liquid. The same applies to foreign investment coins, which are issued in several denominations. This allows you to easily regulate how much money you invest. They offer the best price per gram but are 100% dependent on fluctuations in the price of silver on the stock exchange.
Commemorative coins add an art dimension to investment. This compensates for fluctuations in precious metal prices and the burden of value-added taxes. The limited issue cost and top-notch processing make coins and medals a sought-after collector’s item, and the value of a comprehensive collection is many times greater than the value of a precious metal.
Investing in commemorative coins is an interesting alternative for those who want to save their funds in precious metals, but in addition to physical metal, they also want to own something that has its artistic value, which will grow over the years.