A Brief History of Gold and silver coins
How to buy gold bars & coins - Staring at the price reputation gold and silver is fascinating. For more than 100 years the value of an ounce of gold was $20 and an ounce of silver $1. Silver historically has a ratio of 20:1 to gold, so eventually it will match that again - meaning the purchase price should increase. At today's gold prices, we ought to expect that silver could be priced around $80 per ounce. There are many theories on why this is not the situation including demand and industry fluctuations, the US leaving the gold standard and market manipulation. No-one can be sure why the historic ratio is out of whack but we could infer how the ratio will go back to historical averages.
How to buy gold bars & coins - However, gold has historically equaled the DJIA. If this type of were to become reality again, either gold will skyrocket or perhaps the Dow will crash. In either case, I think holding a combination is a better option as a result of diversification and also to have flexibility should you choose must purchase things down the road with such assets. It may need a powerful person to lug a heavy bag of silver into a store to purchase a pleasant TV.
Why not just hand the cashier an oz . of gold instead?
This was standard practice A hundred years ago in the United States. Empires dating back Egypt, Greece and Rome all traded in gold and silver coins. It was an occasion tested practice. Fiat currency systems certainly are a rather new invention and do not have a great background economically. Recent failures within the fiat experiment were witnessed in Zimbabwe and Germany to name a few. As the historical great need of gold and silver is so proven, I would recommend that everyone should own some as an investment and back-up.
Ways to Invest in Gold and Silver
Gold may seem like a fairly lucrative investment at this time taking into consideration the coming inflation and slow global growth outlook. So how can you actually invest in silver or gold? There are several ways actually. Just please ensure that you understand the spot price of gold in case you are selling or buying gold you possess or want to own. At this moment the spot prices are about $1642 per ounce. The purchase price fluctuates daily but can be located easily on the internet or in financial newspapers. Which means you shouldn't buy an oz . of gold or silver for even more than the spot price (unless it's really a rare coin) and you ought to never sell an ounce of because of a lot less compared to the spot. I've heard stories about failures of men and women selling plenty of gold to cash for gold companies and becoming one fourth from the weight value in payment. And the worst part is they may be happy about it until someone indicates it had been worth Four times more.
Please educate yourself so you avoid getting scammed. It's easier than you think to purchase gold. The best way to invest is to find and hold physical bullion. The ETF's are sketchy since it is hard to guarantee that the paper is backed by physical stock with the gold and silver. I love to go to coin dealers or coin shows and stock up on pre-1964 coins which can be 90% silver or perhaps the old gold eagles that you can go for in one, half and quarter ounce weights. You can also buy jewelry, coins, gold bars or any other tangible items with silver or gold content.
Like a last resort, you can purchase a gold, silver or precious metals ETF or mutual fund for those who have a brokerage account or buy gold or silver futures over a futures exchange. Trading futures is much more risky as well as much more capital but remains another way to take action.