How to Buy Gold and Silver: A Consumer’s Guide to Smart Investments

Buying Gold: Key Considerations for Investors

Gold has long been regarded as a safe-haven asset. Whether you are investing for wealth preservation or collecting for historical value, here are the key factors to consider when purchasing gold:

• Purity: Choose gold bars or coins with a purity of .999 or higher for maximum value and authenticity.
• Weight: Gold is measured in troy ounces or grams. Align the weight of your purchase with your investment objectives and budget.
• Reputable Dealers: Always buy from established, trusted dealers. Verify their reputation and customer reviews before committing.
• Storage Options: Decide where and how to store your gold safely, whether in a personal safe, bank safety deposit box, or a secure vault facility.

Popular gold products include the American Gold Eagle, Canadian Gold Maple Leaf, and Valcambi Suisse gold bars. Each offers different benefits depending on your investment strategy.

Buying Silver: Insights for Savvy Investors

Silver is a versatile metal used for both industrial applications and investment purposes. It’s an attractive choice for investors looking to gain exposure to precious metals at a lower price point than gold. Here’s what you need to know:

• Purity: Most investment-grade silver comes in .999 fine purity. Be sure to confirm this before buying to ensure you’re getting the real value.
• Price Volatility: Silver tends to be more volatile than gold, presenting opportunities for investors looking for short-term gains. Understand your risk tolerance before making a purchase.
• Product Variety: Silver is available in many forms, from coins and bars to rounds and even shot, each offering different investment benefits.
• Affordability: Silver is generally more affordable per troy ounce compared to gold, making it an accessible option for those just beginning to invest in precious metals.

Popular silver products include the American Silver Eagle, 1 oz silver rounds, and 100 oz silver bars. Each of these products can suit different investment goals, from individual collectors to bulk investors.

Investing in 90% Silver Coins (Pre-1965 Coins)

90% silver coins, commonly referred to as "junk silver," are coins minted before 1965 that contain 90% silver content. These coins include dimes, quarters, and half dollars, and are a popular choice for investors looking to buy silver at a lower premium. Here’s what to know when considering these coins as an investment:

• Historical Value: Many 90% silver coins are historically significant and may have added collectible value beyond the silver content.
• Silver Content: Pre-1965 dimes, quarters, and half dollars are composed of 90% silver. For example, a pre-1965 quarter contains approximately 0.18 troy ounces of silver.
• Affordability: These coins are often less expensive per troy ounce of silver compared to pure silver products (like silver bars or rounds), making them an affordable way to invest in silver.
• Liquidity: 90% silver coins are widely recognized and easy to buy or sell through dealers or marketplaces, making them a highly liquid asset.
• Condition: The condition of the coins may affect their value. While most "junk silver" is bought based on its silver content, higher-grade coins may carry a premium.

Common 90% silver coins include the Mercury Dime, Standing Liberty Quarter, and Walking Liberty Half Dollar. These coins can be found in rolls or bags, often grouped by face value (e.g., $100 face value of quarters or dimes). While they may not have the same collector appeal as more pristine coins, they remain a reliable and cost-effective way to invest in silver.

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Frequently Asked Questions

1. Should I buy gold or silver?

Your decision should align with your investment goals. Gold is known for its stability and is often favored for long-term wealth preservation. Silver, on the other hand, offers higher volatility, which can provide opportunities for short-term gains.

2. How can I be sure I’m buying authentic precious metals?

Always purchase from reputable dealers such as APMEX, Yeager's Poured Silver, SilverTowne and Liberty Coin to name a few. Look for gold and silver products with visible hallmarks and certifications. If possible, consider using professional grading services to ensure authenticity and value.

3. Coins or bars: Which should I invest in?

Coins tend to carry a higher premium due to their collectibility and historical significance, making them ideal for collectors. Bars, however, are generally more cost-effective for bulk investors seeking to minimize premiums and focus on the metal’s intrinsic value.

4. What should I consider when choosing where to store my precious metals?

Security is the top priority. You can store your gold and silver at home, in a safety deposit box at a bank, or through a secure third-party storage facility. Each option offers different levels of accessibility and security, so choose the one that best suits your needs and preferences.