The of Gold and silver coins
How to buy gold bars & coins - Studying the price reputation silver and gold is fascinating. For upwards of a hundred years the value of an oz . of gold was $20 as well as an ounce of silver $1. Silver historically features a ratio of 20:1 to gold, so eventually it ought to match that again - meaning the price should increase. At today's gold prices, we should expect that silver would be priced around $80 per ounce. There are many theories on why this isn't the case including demand and industry fluctuations, the united states leaving the defacto standard and market manipulation. No one can make sure why the historic ratio is out of whack but we are able to infer that the ratio will return to historical averages.
How to buy gold bars & coins - On the other hand, gold has historically equaled the DJIA. If this were to become reality again, either gold will skyrocket or even the Dow will crash. In either case, I do believe holding a mixture is the perfect option because of diversification and also to have flexibility should you need to purchase things down the road with such assets. It will take a powerful person to lug huge bag of silver in to a store to get a good TV.
You will want to just hand the cashier an oz of gold instead?
This is standard practice 100 years ago in the United States. Empires going back to Egypt, Greece and Rome all traded in silver and gold coins. This was a period tested practice. Fiat currency systems are a rather new invention and do not have a great background economically. Recent failures in the fiat experiment were witnessed in Zimbabwe and Germany for starters. As the historical significance of silver and gold is so proven, I recommend that everybody should own some being an investment and back-up.
Approaches to Spend money on Silver and gold
Gold seems like a pretty lucrative investment at this time thinking about the coming inflation and slow global growth outlook. Just how are you able to actually spend money on gold or silver? There are several ways actually. Just please ensure that you be aware of spot price of gold if you are selling or buying gold you have or desire to own. As of this writing the spot prices are about $1642 per ounce. The price fluctuates daily but can be located easily on the net or in financial newspapers. Which means you shouldn't buy an oz . of silver or gold for even more than the location price (unless it is a rare coin) and you will never sell an ounce of because of a smaller amount compared to spot. I've heard horror stories of individuals selling plenty of gold to cash for gold companies and becoming a quarter with the weight value back payment. And the worst part is they may be happy about this until someone indicates it was worth 4x more.
Please become knowledgeable so that you don't get scammed. It's easier than you imagine to purchase gold. The best way to invest is to purchase and hold physical bullion. The ETF's are sketchy because it's hard to guarantee that the paper is supported by physical stock with the precious metals. I enjoy visit coin dealers or coin shows and have ready pre-1964 coins which are 90% silver or even the old gold eagles that you can go for in a single, half and quarter ounce weights. You can also buy jewelry, coins, gold bars or other tangible items with silver or gold content.
Being a last resort, you can purchase a gold, silver or precious metals ETF or mutual fund if you have a brokerage account or buy precious metal futures on the futures exchange. Trading futures is a lot more risky as well as a lot more capital but continues to be another way to do it.