Investing in Gold and Silver Coins

       

           

             For thousands of years, gold and silver have been among the most heavily valued metals in the world. Not only do they have monetary value but both have practical uses. Because of gold’s incredible malleability, gold can be used in computers, in the field of dentistry, and for use in the medical field. Similarly, silver can be used in computers, expensive mirrors, solar energy, and medicine. The most common place to find gold and silver is in jewelry and coins. All of the practical uses of these metals make obtaining them incredibly expensive. But from an investor’s point of view, does gold and silver have the potential to make money?

            Nearly every economist online will say that the value of silver will see dramatic rises over the years. Many even say that the rise will reach the triple digits for silver. However, let us stop and consider the supposed “speculators” that project that silver will reach the triple digits. Is there a possibility that silver will go up to the triple digits? There is always a chance, but after looking at many other speculators’ views, it seems as if it will not go up that high in recent times. Some even say silver will reach 300/oz. As the saying goes, “If it seems too good to be true, it probably is.” Also, one must ask themselves, what is the “speculator” have to gain by telling you that the market will increase to one, two or even three hundred dollars an ounce for silver? Often, sites say that the market will dramatically increase for the opportunity to sell you gold and silver coins or maybe to generate more attention to their site. Additionally, on Ebay and other online places to purchase coins, many of the sellers will upsell gold and silver’s value by saying how great of an investment it is and by saying how much money you could potentially make from it. Of course, these people are simply trying to get people to pay more for their coins. Their reasoning goes something like this: Who wouldn’t mind paying ten dollars over spot if the customer thinks that the value is going to triple? An informed investor needs to gather all the evidence to make an educated purchase that is not based on bias.

            However, the market is definitely expected to rise, but the rise in value may not be as significant as an investor would hope for. Investing in gold and silver coins can often be risky. Sometimes investing can be even more risky than the stock market.

            The gold and silver prices sometimes follow a trend. As the stock market goes down, the value of precious metals goes up. A perfect example of this trend was in the 2008 economic depression when the stock market declined greatly, and the precious medals’ prices soared over $45/oz for silver. To summarize, here are several things to keep in mind when looking into buying gold and silver:

    ·         Shop around for the best prices when buying precious medals
·         Read what credible market speculators believe will happen. Here is a great article for further reading on the topic: http://www.rapidtrends.com/4-fundamentals-of-the-silver-price-jason-hommel/
·         Watch out for biases in “speculators’” reviews.
·         Follow general rules when investing: buy low; sell high
·         Watch for trends: Sometimes the price of silver and gold go up with the decline in the stock market. (although this may be true, it is not always the case)
·         Realize that gold and silver generally have a higher demand than supply.

I wish you the best of luck in your endeavors. Email me. I would be happy to hear from you: webuycoincollections@gmail.com

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Note: Nothing in this entire blog is for financial, medical, or legal advice. This is for educational purposes only. 

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