There are many options for investors who are interested in buying gold and silver. There are physical gold and silver bullion, shares of stocks from mining corporations, ETFs, electronic gold currencies, and futures contracts and options contracts. Although a healthy mix of these gold and silver investment vehicles is important, it is always better to put your money in the tangible physical metals.
There are many who don?t necessarily adhere to this perspective. They cite a plethora of reasons why physical gold and silver are not sound investment ideas. Physical metals are more expensive to acquire, for one, compared to some non-physical precious metals investment vehicles. You can buy portions of an ounce, for example, with gold and silver exchange traded funds. The aggressive speculator can also gain control over a large portion of gold for a considerably small amount of money when buying gold futures and options.
Storage is also a thorny issue when it comes to buying physical gold and silver. Whether you store it at home or in a third-party vault that offers maximum security, you need to spend for it. In addition, you will also have to factor in the cost of insurance-something that you really need to get when you own something as precious as gold.
Another area of concern is in the security risk that transporting a physical metal imposes on the owner. There are many individuals who would rather steal from others rather than work for their keep. So when you take your physical gold or silver out of the house or storage facility, you are also putting your own safety at risk.
But despite all these drawbacks, nothing beats owning real gold and silver. The main reason for this lies in the fact that they are tangible assets. Shares of stocks in mining companies, exchange traded funds, futures and options are nothing more than claims of ownership that you have such precious metal in such quantities stored in a bank?s vault or under the ground somewhere. These certificates are nothing more than pieces of paper that connect you to your gold and history has shown us time and again that when something goes wrong, it is the investor who loses his money and his metal.
It is true that physical metals will never appreciate as much or as fast as dollar-denominated assets will. With physical metals like gold and silver, the increase in price is slow in coming and is dependent on how carefully you have stored it. But the increases of dollar-backed assets are by no means long-term effects. As fiat money naturally devaluates, the investments that depend on it will also depreciate. Physical gold and silver, meanwhile, will always retain their inherent value.
The liquidity of physical gold and silver is the ultimate reason for choosing physical metals over mere gold certificates. They might be a bit bulky to store but when your other dollar-backed investments begin to lose ground, you will be thankful that you decided to buy physical gold and silver.
Also, in case you?re interested, you should definitely have a look at Gold Money, it is a safe way to purchase gold online. Read this Gold Money review for more information.
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