Amid economic uncertainty andLooking for some investors . By investing in various assets like precious metals to go along with other holdings like stocks and bonds, the hope is to create a buffer against economic headwinds and potentially find new ways to make money.
But how can you invest in precious metals?And silver? While assets such as publicly traded stocks have a fairly straightforward purchase process, And silver can be a bit more complicated, due to the different ways to buy these precious metals.
The good news, though, is that you don’t have to literally mine for gold to reap the potential benefits. There are several other ways to gainAnd silver in your portfolio, we’ll explore here.
If you are considering investing in gold, get started by requesting a free information kit to learn more about this unique opportunity.
How to buy gold and silver
If you want to buy gold or silver, you have investment options like:
Gold or Silver IRAs
If you want to invest in physical gold or silver bullion in a retirement-friendly account, you can do so by opening what’s known as a(Individual Retirement Account) or a Silver IRA.
But don’t let the names fool you. You probably don’t need to open a separate account if you want to buy. Typically, these are self-directed IRAs that allow you to purchase real gold, silver or other assets that qualify for the tax benefits of a regular IRA, and the bullion can be held in a depository.
But not all financial services firms offer IRAs where you can buy physical gold or silver. So, if you have an existing IRA and don’t want to open another one, you can invest in assets like gold ETFs through your regular IRA instead of physical gold. Be aware of the risks that can come with speculating on precious metals, especially as you near retirement.
Fees are generally higher for specialized accounts like gold IRAs than for regular IRAs. A custodian of your account may charge several hundred dollars per year in administrative fees, depending on the bullion value of your account, compared to some regular IRA accounts, perhaps $40 or more (if not $0).
However, fees can vary depending on what you ultimately invest in an IRA, similar to how mutual funds charge annual management fees. And fees for Gold IRA/Silver IRA may also vary, as providers charge separate trading fees.
A gold professional can provide more context and answer any questions you may have.
Gold or Silver ETFs
One of the easiest ways to buy gold or silver is to invest in gold exchange-traded funds (ETFs) or silver ETFs, which essentially trade like regular stocks. You can buy and sell ETFs through your stock brokerage. ETF issuers typically hold physical gold or silver bullion, and the value of those precious metals is reflected in the ETF’s share price.
ETF providers typically charge a small annual fee to manage the fund. Gold ETFs are typically in the ballpark of 0.20-0.40% of assets, with silver ETF fees typically slightly higher.
Gold or silver mining stocks
Another way to invest in gold or silver is to gain exposure through stocks in mining companies. In theory, if the price of precious metals rises, the companies that mine those metals will also rise in value, but prices can also depend on how these companies operate.
You can buy stocks in certain mining companies, like you would trade tech stocks, for example. Or, you can buy an ETF that invests in various gold or silver mining companies (or possibly both). Fees for mining ETFs tend to be slightly higher than for bullion ETFs.
Explore your gold buying options now by talking to an expert Or use the table below to compare providers.
Physical gold or silver bullion
Another option for investing in gold or silver is to buy physical bullion, such as gold bars or gold coins, or silver bars and coins. Bars and coins may have designs/images, for which they are sometimes considered collectible.
You can find companies that sell gold and silver online and ship the bullion to you. However, it can be more expensive than other forms of buying precious metals. Actual gold prices can be roughly 5-10% higher than the current trading price, if not more. Silver bullion can trade at even higher premiums, such as 25% or more, although the entry point is significantly lower than gold.
Also, you then need to understand how to safely store the bullion, such as in your home or in a depository. You can find some physical stores that buy and sell gold and silver, but you’ll often pay a premium there.
There are many waysand silver, so consider what you want to achieve with these investments before choosing a path. For example, if you like the idea of physically owning gold or silver coins, you can go that route, but if you like the liquidity and relative ease of trading stocks, you can buy an ETF or mining company shares. Consider consulting a financial advisor or trusted professional to see what’s right for you. Learn more now!