Precious Metals Investing Strategies for Beginners

Precious metals have been used as a form of investment for centuries. Today, there are many different ways to invest in precious metals, including IRAs, ETFs, stocks, and bullion. Some people believe that precious metals are a safe investment, while others believe that they are a way to protect themselves from inflation. In this article, we will discuss the different ways to invest in precious metals and the benefits and risks of each option.

Key Takeaways

– Precious metals are a safe haven asset and can help diversify your investment portfolio.

– You can invest in precious metals through IRAs, ETFs, stocks, and bullion.

– The benefits of precious metals investing include hedging against inflation and currency debasement. However, there are also risks to consider before investing, such as the potential for price manipulation and theft.

If you’re thinking about adding precious metals to your investment portfolio, here are a few strategies to consider.

One popular way to invest in precious metals is through an IRA account. You can roll over funds from an existing 401(k) or traditional IRA into a self-directed IRA that allows investments in physical precious metals.

This is a great option but there are important steps you should follow so that you do not get hit with penalties from the IRS, that’s why it is important to work with reputable precious metals IRA companies when you do your rollover.

There are also precious metals ETFs that can be purchased through a brokerage account.

You can also buy stocks in precious metals mining companies or streaming and royalty companies. These types of companies are directly involved in the precious metals industry and their stock prices tend to move with the price of precious metals.

Another way to invest is through purchasing physical precious metals, such as gold, silver, platinum, and palladium. You can hold these metals in a safe deposit box or at home. However, there are some risks to consider before investing in physical precious metals, such as the potential for price manipulation and theft.

No matter which strategy you choose, it’s important to do your research and understand the risks involved before investing in precious metals.


Gold is the oldest form of money. The reason why investors love gold is that it’s a precious metal that is rare, durable, and has many uses. Gold is a great hedge against inflation and it’s a good way to diversify your portfolio. The downside of investing in gold is that it’s volatile and there is the potential for theft.


Silver is another precious metal that has been used as money for thousands of years. Silver is less rare than gold, but it’s still a precious metal with many industrial uses. One of the benefits of silver is that it’s more affordable than gold, so it’s a good option for investors who want to diversify their portfolios without breaking the bank. However, silver can be more volatile than gold, so investors need to be aware


Platinum is a precious metal that is used in many industrial applications. Platinum is rarer than gold and silver, so it can be a good investment for investors looking to diversify their portfolios. However, platinum can be volatile, so investors need to be aware of the risks before investing.


Palladium is a precious metal with a variety of industrial uses. Palladium is less rare than platinum, but it’s still a precious metal with many uses. Palladium is more affordable than gold and silver, so it’s a good option for investors who want to diversify their portfolios without breaking the bank. However, palladium can be more volatile than gold and silver, so investors need to be aware of the risks.

What is Bullion?

Bullion is precious metal that is in the form of coins, bars, or ingots. It is typically at least 99.50% pure and is often used for investment purposes. Bullion coins are government-issued and have a face value. For example, the American Gold Eagle has a face value of $50 even though its gold content is worth much more.

Bars and ingots are usually less expensive than coins because they do not have a face value. They are also easier to store than coins. You can buy precious metals bullion from dealers, banks, brokerages, and online precious metals retailers.

When you invest in precious metals bullion, you are investing in an asset with intrinsic value. Intrinsic value is the value of an asset that is not dependent on its price. For example, gold has intrinsic value because it is rare, durable, and has many uses.

The price of precious metals bullion is based on the spot price. The spot price is the current market price for a troy ounce of metal. It is constantly changing based on supply and demand. You can find the spot prices for precious metals online at sites like or

What are Numismatic coins?

Numismatic coins are precious metal coins with a value that is based on the coin’s rarity, condition, and age. These are not to be confused with bullion coins, which have a value that is based solely on the precious metal content. Many numismatic coins are worth far more than their precious metal content.

Numismatic coins can be made of gold, silver, platinum, or palladium. The most famous numismatic coin is probably the 1933 Saint-Gaudens Double Eagle, which was minted in very small numbers and is now worth millions of dollars.

If you’re interested in investing in precious metals, numismatic coins may be something to consider. However, it’s important to remember that these coins can be very volatile and their value can go up or down quickly. You should always do your research before investing in any type of precious metal.

The Role of Gold and Silver in a Portfolio

The purpose of precious metals is to hedge against inflation and economic uncertainty.

While precious metals may not have the same upside potential as stocks, they offer protection from downside risk.

Gold and silver should make up a small percentage of your overall portfolio – between five and ten percent.

Gold and Silver ETFs and Options

Another way to invest in precious metals is through exchange-traded funds (ETFs) or purchasing options on precious metals futures.

Gold and silver ETFs are traded on major stock exchanges and hold physical precious metal assets, meaning the share price will fluctuate with the precious metal spot price. Gold and silver ETFs offer investors exposure to precious metals without having to take physical delivery or paying storage fees. However, because these ETFs are traded like stocks, they may be subject to broker commissions.

Purchasing options on precious metals futures contracts is another way to gain exposure to precious metals without taking a delivery or paying storage fees. A futures contract is an agreement to buy or sell an asset at a set price in the future. Precious metals options give the holder the


Precious metals investing can be a great way to diversify your portfolio and protect your wealth. There are many different ways to invest in precious metals, each with its benefits and risks. Gold and silver ETFs and options are two popular methods of precious metals investing that offer exposure to precious metals without taking physical delivery or paying storage fees. However, it is important to understand the risks involved in any investment before making any decisions. Precious metals investing can be a great way to diversify your portfolio and protect your wealth, but you should always do your research before making any decisions.


How To Buy Silver Bullion Coins And Bars

If you are in the market for buying silver bullion coins, it’s a good idea to do some research before you get excited and make your first purchase of precious metals because some talk show host said that it was a good idea.

When purchasing silver or gold bullion, consider why you are buying. Is it for appreciation, liquidity, or safety? Are you going to be a collector of rare coins or an investor in silver bullion?

A few years back, I heard a very wealthy man say that an ounce of gold should always buy a fine woolen mens’ suit. What he is saying is that the value of gold usually remains steady even though the price fluctuates. This also holds for silver. Investors that buy silver bullion do so as a hedge against inflation. Owning silver or gold also presents some unique investment opportunities when certain asset classes such as real estate go down in value during normal economic cycles.

Another aspect that you need to consider is the storage of silver bullion. Because silver is relatively inexpensive, storage of large amounts of this precious metal is both difficult and expensive. Will you be cutting a hole in your wall and storing it behind the family portrait or will you purchase a heavy-duty safe such as the one used to store valuables? Many suppliers offer storage from them at a fee. It is not recommended to store your silver or gold in your bank’s safety deposit box as we are in the midst of a banking crisis along with many bank closures. If your bank closed its doors, your valuable assets will be tied up for long periods. It’s always better when you have control over your assets.

There are hundreds of dealers marketing silver bullion coins. The most reputable companies have an online presence. I like to go to Amazon and see what other people are buying. Amazon is a portal for many online dealers of precious metals. You can read reviews from real customers.

A reputable company usually acts as both a buyer and seller. You must be aware that there is a selling and buying price. This is known as the “bid” and “ask”. Precious metal dealers make money off the spread. It’s not much different from a currency dealer.

If you are looking at investing in silver bullion, consider other precious metals such as platinum and palladium to diversify your investment. Make sure that you check the liquidity of platinum and palladium before you jump into purchasing these metals as they are not as popular or well-known as silver & gold.

Purchasing silver bullion coins is easy and you can even start with as little as 1 oz American Silver Eagle coin or generic 1 oz silver bars. If you have concerns about the stability of gold or silver as an investment vehicle, do some research and you will find that both silver and gold are the original forms of money.

Silver is used in many manufacturing processes such as semiconductor manufacturing and the photographic industry. Silver is widely used for jewelry and table silverware. Investors are waging a buying battle with commercial industrial users. Gold, while less used in industrial applications is used as storage in jewelry and rare coins. Therefore, there will always be a commercial demand for most precious metals. Additionally, both gold and silver are in short supply.

Silver bullion bars are a great value because the production cost is less than minted coins. The value of the silver content in both will be the same. The ornamental and decorative impressions on silver bullion coins add more to the total price than to the spot price of precious metals.

Buying precious metals like gold, silver, or platinum bullion is considered one of the safest ways to secure your wealth. At the same time, it’s not an investment vehicle that you can normally purchase through leveraged actions like real estate. It is a great investment vehicle that will ride the tides of any economy. If the paper money or fiat currency were to crash through hyper-inflation or deflation, the value of your precious metals will remain constant.

What To Consider Before Investing In Precious Metals

Establishing a hedge over what the market will do has advantages that may be derived from precious metals in several ways depending upon your experience, understanding, and desire for how you would like to see your wealth diversified. Investment options include precious metals in the form of bars, coins, or other assets, such as the gold-backed IRA.

Methods of Investing – Coins or Bars

When facing the prospect of buying precious metals, many ask the same question: Do I just buy gold bars?

Yes, it is possible to purchase bars, which are called bullion. Precious metals may also be purchased in the form of national coins, presenting a better means of conveyance. Coins can be dispersed more easily than bars and may also be spread among family members as security for both the family and the precious coins. Additionally, national coins are a global exchange, recognized at any precious metal outlet around the world. It is not as easy to trade bars for cash as they would have to be valued for their content first. Aside from the time it takes, trading gold bars is an “all or nothing” proposition.

Further, coins are easier to “house” whether at home or in a trusted vault with a custodian. This is of concern to many who have been investing in precious metals without actually holding the commodity in hand. Again, there is the concern when you do have them in your possession as to where and how they should be concealed. It is unwise to broadcast your holdings to anyone when choosing to secure them within the home. It is best to avoid temptation in challenging times.

Alternatively, this gives rise to the awareness that there must be a level of trust when it comes to parting with the life savings in exchange for a piece of paper certifying ownership. This brings us to the next methods of investment: gold stocks or the gold-backed IRA. Gold stocks have an advantage in that their value tends to exceed that of the actual value of gold itself. These mining stocks are driven by the market, which leaves them vulnerable to market fluctuations.

Rolling Over the 401K

One of the best choices that can be made when investing in gold is to roll over the 401k plan into a gold-backed IRA. This takes care of what to do with the funds after exiting the job, giving more control over the choice of investment while still deferring taxes. A direct rollover from trustee to trustee will avoid any of the taxes and penalties that could apply. Investing in gold through an IRA is more secure in that only approved gold bullion may be purchased. As with all investments, it is wise to consult with an investment adviser to have all your questions answered upfront.

Why Silver Is Better Than Gold

Why do you think that out of so many years, right now is a great time to invest in silver? One of many reasons is there seems to be a historic breakout for silver in India. Put simply, silver prices are beginning to cause a rise in terms of the Indian rupee but not in U.S dollars.

The movement of prices in India is exactly what I call a “stealth price discovery movement”. The increase in prices in rupee terms gives U.S. investors an idea of what investors within other finance industries are thinking by a look at the movement they understand that they can invest in silver.

In cases like this, Indian investors observe inflation as a cause for concern. Plus they see the silver metal as an answer.

In the past, silver has shown that it is to be a hedge against inflation in other types of asset costs. It serves as a store of value. Indeed, in today’s world that has debt-backed currencies with sovereign bond risk, silver is poised to return to its valuable metal value, joining gold as a currency with no debt default risk.

As worries of inflation sweep across India’s economic climate, that nation’s silver market keeps recording new record highs. At the same time, the silver price in the U.S. economy has also proven early signs of waking up. This can make investors would like to look at the market and invest in silver.

Silver is currently cheap when priced in gold. This has happened because the yellow metal has been setting new minimal high prices this year though silver was unsuccessful to follow suit. This particular price divergence between silver and gold has attracted some traders, who might try to position a trade that is based on the ratio between gold and silver as quoted in silver oz.

In this type of trade, the possibility exists to earn money as silver goes up or as gold comes down in price. Silver has been trading at a typical ratio of around 61 oz of silver to one oz of gold. At the moment, the trading percentage is roughly 65. This lets us know that silver is reasonable compared to yellow metal at present prices.

Throughout the Hunt Brothers pricing bubble, silver reached an all-time low ratio of 17 ounces to one oz of gold.

The extraordinary characteristics of the 1980 price move caused by the actual Hunt Brothers are most likely the reason why silver has yet to have a price breakout, at least not within U.S dollar currency calculated in rupees. Silver is currently trading at a record high and it’s certainly looking good for traders who want to invest in silver.