Tips for investing in gold and silver

Gold and silver are real money. Investing in them whenever it is done in a physical way, is to do it in a monetary asset without counterparty risk, because they are not the liabilities of anyone else regal assets.

What does this mean? That they are financial insurance against crises , because in the event of a collapse like the one that is coming to the world – because of the unlimited printing of banknotes from all central banks, gold and silver will never be worth zero.

That can happen to our banknotes and sovereign bonds, among other assets.

 

Therefore precious metals must be accumulated for their value.

If what you want is to speculate on the price, whether you bet on it going up or going down, then perhaps physical metal is not the best option for you.

For that there are other instruments and assets indexed to the price of raw materials, and other derivatives.

However. Many question whether in a context in which the prices of raw materials such as oil continue to fall, investing in gold and silver is risky or not.

The risk is always present. But for the investor in value, the fact that the prices of gold and silver fall is very good, since he buys them cheaper; these movements favor it.

The ideal way to acquire physical gold and silver is in minted metal, due to its greater negotiability, and secondly in bars.

The jewels are the least recommendable for the added value, superior to the metallic one that they contain, but with high risk of theft.

When they ask me if it is time to buy or not, my answer is always the same: it depends.

If you are going to buy as an investor believing that next year you can resell it at a higher price, you may be disappointed.

Instead, the horizon to observe should be the long term, as a refuge, and accumulate periodically so that your portfolio is strengthened.

What should be avoided at all costs is those platforms of supposed investment in gold that is never seen.

Those who say that it is sheltered in some part of the world far from us and that they offer us prompt profits by inviting more people to the business. The companies of this type that I have known manage an alleged “multilevel” scheme, which could be a scam. Better, stay away from them.

How to invest in gold

There are many different ways to invest in gold, as we tell you below.

  • Buy gold directly. You can buy gold directly in the form of bullion or coins. When you have done this, keep these amounts of gold for a while, since you can later sell them. You can feel good about having gold in your possession, but you must be careful with it. The biggest drawback is that you will have to pay to have it insured or stored regal assets.
  • Buy shares in a company that is dedicated to the sale of gold. You can also buy shares in a company that produces gold. The value of the shares is going to be strongly correlated with the value of the gold itself. There is also the possibility that having gold will pay you dividends for your shares.
  • Gold futures and options. You can invest in gold through financial derivatives that specialize in gold investments such as call and put options.
  • Invest in a gold ETF. A gold ETF is a publicly traded fund that specializes in investing in a range of gold securities. Such diversification may somewhat minimize your risk. Two popular gold ETFs that are traded in the market are street TRACKS Gold Trust and iShares COMEX Gold Trust.
  • Ultimately, gold can be a profitable investment when all other investment products fail. However, remember that there are profitable and safe products such as bank deposits.

One of your main concerns when investing in gold should be inflation or the devaluation of the value of the currency. That said, before investing in gold, you must know very well what type of investment you are going to make and the value of gold at that time. Also, keep in mind how much it will cost you to exactly store and insure physical gold, what are the tax differences for your income tax category between investing in a gold ETF and a gold mining ETF? Knowing the details of all this can make a big difference when it comes to profitability.