New to gold investing? You probably have some of the same questions as
other new precious metals investors. Here, I have taken the opportunity
to answer some of the most frequently asked questions.
Why Should I Consider Silver And Gold Investing?
Investing in silver and gold can be the best way to protect yourself
against inflation and uncertain economic times. In the past, most people
have avoided investing in silver and sold because they did not understand
the concept of a "hedge."
What Is A "Hedge"?
A hedge is a means of protecting yourself when the market moves against
you. Gold and silver are a hedge investment because price of gold and
silver tends to increase in value during times of inflation and
recession. As a result, when your stocks are going down in value, gold
prices are going up.
Why Isn't Silver And Gold Investing More Popular?
In the past, you had to purchase silver and gold one coin (or bar) at a
time. Because the market was so illiquid, gold prices charged by dealers
and coin shop owners varied widely from location to location.
What Are My Options For Investing In Silver And Gold Today?
If you want physical gold, you can purchase silver and gold bars (or
coins) over the internet and have them delivered safely and quickly to
your door. If you are more comfortable owning securities, there are a
number of stocks and mutual funds backed by the value of the silver and
gold in their investment portfolios.
How Easy Is It To Sell My Gold And Silver Equities?
Unlike selling gold jewelry, selling your silver and gold bars, bullion
and equities is easier because gold and silver are traded more
standardized forms. Because the market value for gold and silver backed
equities is calculated daily, you can get a quote from any news outlet to
find the current market price of your gold backed securities. If you want
to sell, place a sell order with your broker in the same manner as you
would sell nay other equity or security.
What Is The "Spot Price"?
The "spot price" is defined as the price that is quoted for immediate
(spot) settlement (payment and delivery). Spot settlement is normally one
or two business days from trade date.
How Do I Sell My Gold Bars, Bullion And Coins?
To sell gold and silver bullion, you need to know the "spot" price of the
commodity. The dealer will usually quote you silver or gold prices at
a certain number of dollars (or a certain percentage) "under spot."
How Do I Sell My Junk Silver Bullion?
Circulated pre 1965 silver coins (often called "junk silver") are 90%
silver bullion and are sold at "times face" value. The dealer may quote
you "10 times face" or "20 times face" per coin depending on the spot
price of silver. You can research the internet in order to determine the
going rate on junk silver.
Do I Use This Method To Value My Coin Collection?
NO! Gold and silver coins with numismatic value are valued differently.
Do not use this method as a means to value rare coins that have
numismatic (collectible) value.
Should I Add Gold And Silver To My Investment Portfolio?
Only you and your investment advisor should answer that question after
carefully evaluating your investment objectives as well as the risks and
costs associated with investing.
So, now that you understand silver and gold investing a little bit
better, now is the time to get up and make an appointment to speak to
your investment representative about whether or not to add some form of
silver and gold to your investment portfolio.
Richard Bertrandt is an author, teacher and entrepreneur that counsels
his readers to consider gold investing as a hedge against recession,
inflation and uncertain economic times. Because gold prices fluctuate
constantly, you should consult an investment adviser to determine how to
add silver and gold to your investment portfolio.