Is physical gold better than gold stocks? Which of the two options can benefit you most as an investor who is trying to invest for retirement? If these are some of the questions that have been at the top of your mind, then you are in the right place, since I will take you through what you need to know to make a solid decision. Read on till the end of this post to find out more.

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P.S.

See our Top-5 List of Gold & Silver IRA solutions

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There is a significant distinction between buying actual gold and buying gold stocks. When you invest in gold, you’re usually investing in bullion, which means you’re buying the precious metal itself in the form of gold bars or coins. When you invest in gold stocks, on the other hand, you’re buying a stock like any other.

Gold stocks are generally linked to the price of physical gold, but they are also susceptible to other types of risk, as well as the stock market as a whole. So, which of these gold investment methods is better? That, of course, is dependent on your specific circumstances, such as your investment objectives and risk tolerance. Let’s look at the various ways you can invest in gold.

***Gold IRA Information | The Basics and Tips For Beginners

***How Can I Safely Invest in Gold? | Things You Need To Know!

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Options for Investing in Gold Stocks

You can invest in gold stocks in a number of different ways (vs. physical gold). Your primary options are as follows:

• Gold certificates
• ETFs that are based on mining stocks

A gold mining stock is a share of a company that engages in gold mining. It’s a liquid investment that may be bought and sold on a stock exchange like any other stock.

1. ETFs that invest in gold

A gold exchange-traded fund (ETF) is a fund that, like any other ETF, trades on a stock exchange. On the other hand, a gold ETF invests in a number of gold mining firms. It, like other ETFs, provides immediate diversification by spreading your risk across numerous companies.

2. Gold certificates

Because the dollar is no longer backed by gold, this kind of gold investment isn’t as popular as it once was. A gold certificate, which isn’t strictly a stock, is an official document that proves you own gold that isn’t in your possession. On the other hand, your investment may become worthless if the certifying firm goes bankrupt.

The benefits and drawbacks of gold investments

Gold securities, like any other financial asset, offer both advantages and disadvantages.

Advantages of Gold Securities

Securities, in addition to some of the usual advantages of gold ownership, provide:

1. Liquidity

Gold securities are obviously easier to buy and sell than bullion because they trade on major exchanges. Aside from any administration or account fees your broker or fund manager may charge, there are no storage costs.

2. Returns that are compounded

While miner payouts are often modest at best, they are better than receiving no dividends at all, as you would with real gold. There’s also the risk that the stock price will rise.

3. The initial investment is minimal

Mutual funds and exchange-traded funds (ETFs) are the most cost-effective approach to investing in general.

***Gold and Silver Investment Strategies | Top Choices For 2022

Drawbacks of Gold Securities

1. Volatility

Operating expenses, reserves, and management all have a role in a miner’s performance, just as they do in any other business. As a result, stock prices are typically more volatile: When gold prices fall 10%, gold stocks often fall 15%.

2. Risks that are systemic

The stock performance of a gold mining business reflects the political and economic situations in its home nation. Africa, Russia, and Latin America are home to some of the largest operations, which have seen their fair share of volatility and are frequently avoided by socially responsible and institutional investors.

Also read: Gold in War | What is it good for? | Hedge against inflation

3. You are not the owner of the gold

Gold securities aren’t as pure a bet as they formerly were. They represent physical gold, but you don’t have the authority to exchange them for it. As a result, they don’t offer the same level of security as gold against a paper currency or financial market crash.

Check out the posts below as well:

***How do I Invest in Gold Stocks? Value Stocks To Consider!

***How to Invest in Farming & Agricultural Stocks | Helpful Info

***Agriculture Stocks Dividends | Viable Source of Income?

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Investing in Physical Gold

Physical gold (as opposed to paper gold) can be purchased in two ways:

• Gold coins
• Gold Bars

Gold Bars

Gold bars are divided into two categories: cast gold bars and minted gold bars.

Minted gold bars are formed by pouring molten gold over a long strip of metals, then cut into bars. Cast gold bars are made in a mold, whereas minted gold bars are made by pouring molten gold onto a long strip of metals, which is then cut into bars.

Between the cast and minted gold bars, there is a slight texture and aesthetic variation. Cast gold bars are rougher and less perfect, whereas minted gold bars are shinier, smoother, and more perfect-looking — and more like you’d expect a gold bar to seem.

The minted bars’ attractive look, along with the fact that they are frequently stored in their original packaging, helps them keep their appeal and value over time.

Is it Worth Investing in Gold Bars? | Are Gold Coins Better?

Gold Coins

Investing in gold coins, rather than gold stocks, is another option to get actual gold. You’re probably thinking of the kind of coins you’d find in a pirate’s treasure in a fantasy movie. Gold coins, on the other hand, are quite genuine. Gold coins are produced in a number of mints around the world and are typically accepted as legal tender. This is due to the fact that gold coins frequently have a face value. The value of the real gold that makes up the coin, on the other hand, is frequently far more than the face value, rendering the face value largely unimportant.

Gold coins can have added value as collections in addition to their function as a store of money. This is especially true with gold coins struck before 1933 in the United States (which was the year gold coinage ceased its circulation in the U.S.)

***Best Gold Coin Dealers | Top-3 Options To Buy Or Sell To

Physical gold’s advantages and disadvantages

For many people, possessing gold is all about having physical possessions. The majority of the intrinsic investment benefits are found in the metal itself.

Physical gold’s benefits

1. Hedging against inflation

Gold, as a tangible asset, is said to have an intrinsic worth that always reflects the cost of living, according to proponents.

==> Gold Investment in Inflation | Is it a Necessary Addition?

2. Stocks have a counterweight

Gold, like other commodities, works as a counterfoil to equities, moving in the opposite direction of the stock market most of the time. Consider the following example: When the subprime mortgage crisis hit in 2008, ushering in the Great Recession, gold, which had been trading in the $400-600 range for years, rocketed to $1,000 per ounce and stayed there for the following three years.

3. A safe haven

In uncertain times or when there is socio-political unrest, gold is viewed as a safe haven. For example, after the 2016 Brexit vote, its price increased by more than 10% in a month. Owning gold appeals to those who are concerned about the collapse of global markets or other risks to a government’s capacity to back its currency. Physical gold cannot be hacked or erased. Gold is impervious to natural disasters and will not deteriorate over time.

Physical gold’s drawbacks

1. Storage costs a lot of money

Storing gold at home exposes you to significant theft and loss concerns. Keeping it in a commercial facility comes with storage expenses, which are frequently determined by the size and value of the assets (anywhere from 0.5% to 2%). If you’re not storing your gold at a professional facility, you’ll also need to insure it – another recurring cost.

2. Illiquid.

A click of a button or a phone call to a broker will not sell physical gold. Even with dealers acting on your behalf, a sale can take days or weeks to complete, not to mention the shipping arrangements.

==>Gold Retirement IRA Planning | Getting Started The Right Way

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Frequently Asked Questions on “Physical Gold Vs. Gold Stocks?”

1. What is the most effective technique for a beginner to gain exposure to gold?

There is no such thing as a perfect method to possess gold: each option comes with its own set of trade-offs. However, for most people, buying stock in streaming and royalty firms is definitely the best plan. What to invest in, on the other hand, is only one part of the puzzle: There are a few more things to think about.

2. How much money should you put into gold?

Because gold is a volatile investment, you shouldn’t invest a substantial portion of your assets; it’s advisable to keep it under 10% of your whole stock portfolio. The actual advantage, for both new and seasoned investors, is the diversity that gold can provide. Once you’ve established your gold position, make sure to rebalance your portfolio on a regular basis to maintain the same level of relative exposure to gold.

3. When is the best time to buy gold?

It’s advisable to buy in little amounts and spread them out over time. When gold prices rise, so do the prices of gold-related stocks. This may result in low short-term returns, but it doesn’t negate the long-term benefits of keeping gold to diversify your portfolio. You can dollar-cost average into the position by buying a bit at a time.

4. Is it possible for me to invest in gold jewelry as well?

Individuals who own gold jewelry can also invest in gold. Because the cost of the jewelry often exceeds the value of the underlying gold, this is the least effective way to invest in gold.  Also, to pay the jewelry designer and jeweler, there is a significant markup.

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Also Read:

==> See my #1 Recommended Gold & Silver IRA Solution

==> See Top-5 Recommended Cryptocurrency IRA Solutions

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That will be all for today’s post in which we have looked at whether physical gold is better than gold stocks. I hope that you enjoyed it, and found it beneficial and that you now know what to do. If you still have more questions with regards to this post, drop them in the comments section and I will get back to you ASAP.

I wish you well,

Eric, Investor and Team Member at Gold Retired!

What is the best investment for retirement income? How can you invest your hard-earned money to see to it that you do not have any financial challenges during your golden years? Are there any unique investment vehicles that you can turn to in an attempt to build wealth for your later years? Join me in today’s comprehensive post, in which I will share with you some viable investments that I established were worth checking out after doing some extensive research. 

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P.S.

See my Top-5 List of Gold and Silver IRA solutions

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Introduction

If you have kids or you are still struggling to build your career, then retirement may not be the first thing you think about when you wake up every morning. But someday in the future, when you have enough funds to put aside in the form of savings, it will be something you will not only think about but will also strategize about. 

To ensure that you are financially secure during retirement, then it is wise to create a plan early in life- or right now if you have not taken the time to do so. By diverting a small portion of your monthly paycheck into a retirement investment plan, your funds can grow exponentially, and ultimately present you with the peace of mind you need upon downing your tools of work. 

Let’s take a look at some of the investment options that other people have taken up in the past, and relied upon to secure their financial future. 

(N.B: There are no guaranteed investments, hence you should always do your due diligence to see to it that you pick the investments that will bring you closer to your financial goals for your retirement years.) 

Individual Retirement Account (IRA) Plans

An IRA is a well-defined retirement plan created by the U.S. government to assist workers to save for their retirement years. Individuals are allowed to contribute up to $6000 to these plans ( in 2022). Those aged over 50 can contribute up to $7000, to maximize the potential for returns during their retirement years. 

IRA plans are tax-advantaged retirement plans that many people headed to their retirement years seek to utilize. There are, however, different types of plans, with each one presenting its unique benefits. The most common ones include:

• Traditional IRAs
• Roth IRAs 
• Self Directed IRAs e.g. Gold IRA, Real Estate IRAs, Cryptocurrency IRAs, etc. 
• Spousal IRAs
• Rollover IRAs
• SEP IRA
• SIMPLE IRA

More interesting reads for you: 

***Is it Wise to Invest in Gold by Doing a Gold IRA Rollover?

***How do Gold IRAs Work? Do They Have Any Tangible Benefits?

***What to do after Maxing out your Roth IRA?

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Real Estate Investments

Real estate is a unique asset class that has been an attractive choice for many investors. Common approaches to investing in real estate include:

• Rentals 

Rental real estate provides the investors with steady cash flows in the form of monthly rent, hence enabling them to live a sustainable lifestyle.  This does not mean that it is without any risks. 

There are times when tenants fail to pay rent on time, and others when there are vacancies between tenants. You are also required to cater for damages and make regular property updates. If you can, however, ensure that you get these variables right, you can enjoy regular cash flows in your golden years, and only have to collect checks every month as you purchase expensive toys and live a lavish lifestyle. 

• Reverse Mortgages

If you own a home and would need to access the equity through the home, then a reverse mortgage presents you with an opportunity to do so. A reverse mortgage is essentially a loan that homeowners aged 62 or older can take if they are out to access the value in their home. The value is usually received in the form of a lump sum, fixed payments, or as a line of credit. 

Unlike traditional mortgages, investors are not required to make regular payments. The loan must, however, be paid in full once you leave the house or you pass away. 

Simply put, with a reverse mortgage, the lender sends you a predefined monthly payment from the equity of your home. 

• REITs 

If you are not interested in being a landlord in retirement, you can utilize Real Estate Investment Trusts, also known as REITs, which allow you to invest in real estate without necessarily managing the property and collecting rent. 

REITs pull money together from many investors to invest in many properties, in a manner similar to that of mutual fund investments. 

The good thing about REITs is that they handle the administration and management required, and they are mandated by the law to pay out not less than 90% of their income to investors in the form of dividends. You can purchase REITs through well-diversified mutual funds as well as ETFs, which include:

• Vanguard Real Estate ETF ( VNQ)
• iShares US Real Estate Index (IYR)
• DFA US Real Estate Securities Portfolio ( DFREX)

==>Gold vs. Real Estate | Let´s Compare Them to Decide a Winner

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Dividend-paying value stocks

With dividend-paying value stocks, you can obtain dividends that can act as retirement income. Investors have the option to invest in dividend stocks through a mutual fund, or through an ETF. 

What, however, are value stocks? 

These low-priced stocks are offered by companies that are significantly undervalued. Such stocks are often less expensive, and they often pay a higher dividend than their counterparts, growth stocks. 

Historically,  value stocks have outperformed growth stocks. The one thing to note, however, is that past performance does not always guarantee future results. Still, it helps to understand the performance of value stocks over time as you look for ways to invest in them as part of your retirement investment strategy. 

I would also recommend that you highly consider diversifying across value stocks since it is possible for some firms to pause their dividend payments if their businesses slow down and cash flows become tight. 

Relying on a single company effectively puts your retirement income at risk. You can mitigate your risks by having mutual funds or ETFs that target value stocks, e.g.:

• DFA U.S. Large Value ( DFLVX)
• Vanguard Value ETF ( VTV)
• DFA U.S. Core Equity 1 ( DFQTX)

Informative posts worth checking out:

==>Top Pet Stocks You Can Invest In

==>How to Invest in Farming & Agricultural Stocks | Helpful Info

==>Agriculture Stocks Dividends | Viable Source of Income?

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Frequently Asked Questions on “Best investment for retirement income?”

1. When should I start planning for retirement? 

It is never too late to start planning for retirement. The earlier you get started the better. Investing early enough gives your investments sufficient time to grow, even when you are only putting aside a small portion of your monthly paycheck.

It also helps you avoid stressing over your investment decisions in the future. I would highly recommend that you get started by educating yourself on the investment options available, before spending on any type of asset. You can, however, put aside some funds for the purpose of retirement investment, so that as soon as you find options, you can start channeling the money to them right away. 

New to investing in precious metals for retirement? Read our precious metals investing for dummies guide. 

2. How should you change your investment strategy as you near your retirement years?

As investors near retirement, it is common for them to move their funds to safer and income-focused assets. Assets such as stocks, which are riskier, tend to perform better over time, but they may only expose you to the downsides of a market crash if you hold on to them as you near retirement. You may, unfortunately, not have time to recover if a stock market crash occurs right as you retire. As the investment timeline shrinks, it is advisable to move your funds into safer, inflation-beating assets that still promise decent returns. If things are getting out of hand on a global scope, you may need to invest in assets that are a store of value. 

3. How much should I save for retirement? 

Financial experts recommend that you save up to 15% of your gross annual earnings for the purpose of retirement investing. In a perfect scenario, one should start saving for retirement in their 20s and do so throughout their working years. 

4. How should you invest if you are worried about your tax rate going higher during retirement?

If you are worried that taxes will be higher in retirement, then it would be a good idea for you to focus on Roth IRA investments. Roth IRA contributions are made after-tax, meaning that you will not pay taxes on your qualified withdrawals in retirement.

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Also Read:

==> See my #1 Recommended Gold & Silver IRA Solution

==> See Top-5 Recommended Cryptocurrency IRA Solutions

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Thank you for making it to the end of this post on what the best investment for retirement income is. I hope you found it informative, and that it will help you get started with a solid retirement investment strategy. Let me know if you have any questions with regards to what we have discussed herein- drop them in the comments section and I will get back to you ASAP!

I  wish you well, 

Eric, Investor and Team Member at Gold Retired!

On this page we are going to go through all the Augusta Precious Metals complaints to be found online. In an effort to decide if this gold IRA specialist firm actually deserves to be as extremely popular as it has been in the last couple of years? Worth to mentioning here is that their popularity is mainly among “bigger investors” or in other words, very wealthy retirees. The obvious reason for that is due to their minimum investment amount for gold & silver IRAs starting at $50,000. The average investment amount of their clients (according to the company) is around $600,000 and not very seldom $1Million+ so yeah, this company can be called the creme de la creme of gold IRA dealers.

Ok, let´s get started to look at the complaints that are to be found on this “rich retirement savers club” called Augusta!

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P.S. Before we get started I just want to mention that I have written a more detailed report on the overall service of Augusta Precious Metals that you can read on this page instead. Ok, with that said, let´s jump into this post´s main topic on their complaints from reviews to be found online!

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Reviews on Augusta Precious Metals (with focus on complaints)

Let me explain how we have conducted this research first. What we (always) do when we review any particular gold investment company on this site is that we ALWAYS start by looking at the most well-known and trusted independent third-party consumer protection agencies. The reason for that is simply because that is where you (most likely) will find the most accurate information about the company you want to look deeper into, right?

So, what are the most well-known and trusted consumer protection agencies then? I normally call them the BIG 5, and those are (in no particular order):

• BBB (Better Business Bureau)
• Trustpilot
• Trustlink
• BCA (Business Consumer Alliance)
• Yelp

Ok, so let us start by looking into these 5 big ones above one by one and see what we can find!

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BBB reviews & complaints

Rating from BBB: A+ (highest rating possible from BBB)

Rating from clients reviews: (5 / 5)

Reviews: 104

Complaints: 0 (zero)

Visit the Augusta profile page on BBB here (opens in new window)

Our conclusion from these results:

As you clearly can see above, the results are very impressive on the BBB website, as a matter of fact, I have never seen a gold IRA company that have recieved more reviews on a BBB profile than Augusta. In the same time, they got highest possible ratings from the agency itself + pretty much 5 stars overall from their customers. Ok, this was boring, it would be more fun to present some nasty stuff here but sorry, not this time! Let´s move on to the next consumer protection agency!

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Yelp Reviews & Complaints

Ratings from the client reviews: (5 / 5)

Reviews: 4

Complaints: 0 (zero)

Visit the Augusta profile on Yelp here (opens in new window)

Our conclusion from these results:

Here we didn´t find the same huge amount of reviews from Augusta customers and the few (only 4) we found was all top-ratings. So… this was a bit boring as well. Where is the nasty stuff? Let´s move on!

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Trustpilot Reviews & Complaints

Overall rating: N/A

Reviews: o (zero)

Complaints: 0 (zero)

Visit the Augusta profile on Trustpilot here (opens in new window)

Our conclusion from these results:

This was actually a bit surprising to see, that there was not a single review from customers on the Trustpilot website. Not sure why the reason for this is but am a bit confused by this actually. If you got any idea of why this is the case then please leave your opinion in the comment section below this page. Anyway, let´s move on!

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Trustlink Reviews & Complaints

Overall rating: (4.9 / 5)

Reviews: 282

Complaints: 0 (zero)

Visit the Augusta profile on Trustlink here (opens in new window)

Our conclusion from these results:

Well, not much to say here other than congratz to Augusta Precious Metals AND their customers as both parties are apparently very happy with the business relationship. With an overall score of 4.9 out of 5 from 282 you cannot be anything other than impressed, not sure what else to say about it. Let us look at the next consumer protection agency!

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BCA Reviews & Complaints

Overall rating: (4.9 / 5)

Reviews: 92

Complaints: 0 (zero)

Visit the Augusta profile on BCA here (opens in new window)

Our conclusion from these results:

Again! Very impressive results and not a complaint in sight from close to a hundred (92) reviews on the Business Consumer Alliance website on Augusta. Are you starting to see why they are such a popular chooice among high-networth retirement savers? Yes, so do we and both me and the rest of the team at Gold Retired have to take our hats of for Augusta. They do not only have a pretty much flawless track-record when it comes to reviews and ratings but they clearly do things a bit different than other gold IRA companies as well. In a positive way!

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Augusta do things a bit different!

As you can see (example screenshot below) when reading some of the reviews you can tell that their customers appreciate the one-on-one help from the Harvard trained economist working at Augusta. They also seem to appreciate the ongoing support for the life-time of the customer, instead of being ignored after the deal is done like we unfortunatly see many other precious metals IRA dealers in the industry do.

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Is there not even one complaint on Augusta?

As you can clearly see above, we didn´t find a single negative comment about the company on ANY of the “big 5 consumer protection agencies”, that are the most respected in the industry. That is pretty un-common, almost unique I would like to say, and also extremely boring. Like I always say, even Mother Theresa had haters, right?

So, we went to other “less respectable” websites to search. Mostly for fun as we do find it extremely pontless to search for complaints outside of the main agencies. I know that might sound synical, but try to see it through our researching eyes!

As always, when you want to find something hard enough, you will find it so here it is on a website called RipOff Report where there actually was 2 complaints to be found. If they are real and legit ones is a whole other story though…

If they are actually written by real customers or from a competitor is another story, I find it a bit suspect that the only complaint to be found was outside the reliable consumer protection agencies. One of the complaints is also about so-called home storage IRA scams, and that is even weirder as Augusta do not offer home storage, it is actually not even allowed. So what´s going on here?

Important to mention:

Keep in mind that anyone can write anything online on many places, that is why we put the most weight on the “big 5 consumer protection agencies” as you have to actually be a client to be able to write a testimonial there.

Pretty much everything outside of those, are great platforms, and a great “opportunity” for competitors to trash talk eachother while they can pretend to be a customer while they in reality aren´t. This is more common that you might think, especially in a market like gold, as it is a very lucrative one, not to mention the cryptocurrency market.

Anyway, so please keep that in mind if you would find some horrible comment about Augusta, or any other company that you know is treating their clients in a very good way. It might very well be an agent hired by their competitors to trastalk and “troll”  to make the company they work for look better. Yeah, you get the point, and I think that might very well be the case here with these 2 complaints above.

Let´s be fair and honest here shall we?

We had to dig deep and on “questionable” places to find those 2 complaints above, right? I have been in this industry for 7+ years. I can pretty much assure you, that you won´t find a gold IRA company that hasn´t got at least the same amount of complaints to be found. Most will have a lot more, and worse! You will even find lawsuits filled against companies that are very well-known, you might be surprised on some of the names.

Again, if you research places outside of the big 5 agencies, you will find complaints on all of them, and that is not a big deal, as long as the complaints aren´t found on the “big 5” consumer protection agencies. If you would find complaints on those (big-5) websites, then it could be a red flag, at least if they are more than just a few. Of course, you also have to take the actual amount of reviews into consideration as well. If a company got tens of thousands of reviews, then 100 complaints might not be that serious, right? It would be worse if you found 100 complaints on a company that only got 500 reviews in total, right?

Let´s include some other platfroms (that we normaly don´t put much weight on)

We also haven´t included that Augusta got top-ratings from platforms like Google and Facebook yet, but they do!

Google: (5 / 5) (from 186 reviews)

Facebook: (5 / 5) (from 68 reviews)

The reason I didn´t include these further up on the page is simply because I do not consider those 2 platforms to be nearly as legit as the top-5 agencies, when it comes to reviews and ratings of a company.

Anyone can write whatever they like and feel on Facebook and Google and not just real customers like the case is with the big 5 consumer protection agencies.

However, as I digged halfway to h##l to find those 2 complaints on Augusta (that I do not put much weight on either) I felt I had to mention the top-ratings from some other websites that I do not give more than 5 cents for either. Fair enough, right?

Conclusion:

Well, mission accomplished I would say, we managed to find some complaints as that was the whole focus of this research. Even if the “complaints” we found aren´t anything to be alarmed by, we think the scores and ratings from the “big-5” speaks loud and clear. Those numbers and stats do not lie and that is where I suggest you look when you want to research the credibility of a particular company.

You are a smart person, I know that because you wouldn´t have read this page if you weren´t, you clearly understand the importance of doing your due diligence, right? Unfortunatly, that is not the case with around 90% of investors out there I would say. I am absolutely sure that you will find the right company to do business with and that suits your particular needs the most.

First of all, you should feel comortable doing business with a firm and that starts with trust.

If you are a high-networth retiree then I would say that you might have just found your top-contender with Augusta. You might remember that their minimum IRA investment starts at $50k so if you are planning to put that or more into gold & silver then I cannot do anything else than recommend that you look at what Augusta has to offer. If you plan to invest less than that you got my other recommendations for that below as well:

Augusta Precious Metals (minimum IRA starts at $50,000)

Goldco (minimum IRA starts at $20,000)

Advantage Gold (minimum IRA starts as low as $5,000)

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I hope you found this short post on the complaints to be found on Augusta Precious Metals to be helpful, or at least entertaining and that you know have a clearer view on the subject. Please share your own experience in the comment section below as it can help others make better investment decisions!

Much success to you!

Glanz, investor and team member at Gold Retired!

You might also like:

How to avoid gold IRA Scams!

Gold in War | Hedge against inflation

How to protect your 401(k) from a market crash

What does the Bible say about retirement | gold & silver

How to invest in cryptocurrency from your retirement account

How to avoid cryptocurrency scams

Today’s post is more of a precious metals investing for dummies guide. The truth is that while many people have heard about precious metal investing, they don’t know how they can go about it.  This post will cover the basics needed for one to get started, so read on to find out more about this interesting topic.

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P.S.

See our Top-5 List of Gold and Silver IRA solutions

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Introduction 

Gold and silver have for many years been recognized as valuable precious metals that many individuals would not mind owning. Even in the present-day world, precious metals are still coveted and highly sought after by savvy investors. That said, not all forms of precious metals are used for the purposes of investment, and not every precious metal dealer will have the right metals for you. Below, we take a look at the precious metals that have found their place in the portfolios of most precious metal investors:

Gold

We shall get started by looking at the king of them all: gold. Gold stands out due to its durability, malleability, and heat and electrical conductivity. It has also found its use in industries such as dentistry and electronics, though it mainly finds its use as a base for jewelry, as well as a form of currency.

Gold trades mainly as a function of sentiment, and its price is not significantly affected by the laws of demand and supply. This arises from the fact that any new supply from gold mines is greatly outweighed by the above-the-ground supply of gold. Generally, when hoarders feel like selling their assets, the price of gold drops, and when they want to purchase more gold, a new supply is absorbed, causing the prices of gold to go higher. 

A rise in the desire to hoard the gleaming yellow metal can be attributed to several factors:

• Systemic financial concerns: When financial institutions and currency are believed to be volatile, as well as political stability, gold is frequently sought as a safe haven.
• Inflation: When actual rates of return in the stock, bond, and real estate markets are negative, consumers frequently flock to gold as a safe-haven asset.
• War and political turmoil have always prompted people to stockpile gold. A lifetime’s worth of savings can be made portable and stored until it’s time to exchange it for food, housing, or safe transit to a less perilous location.

==>Retirement Planning (Gold IRA) | What You Need To Know!

==>Gold Investment in Inflation | Is it a Necessary Addition?

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Silver

Unlike gold, the price of silver is seen to oscillate between its perceived role as a precious metal that can be used for the purpose of the storage of value, and as an industrial metal. These reasons contribute to the price of silver being more volatile than that of gold. 

This implies that while silver and gold are traded together like items to be hoarded, the industrial supply and demand for silver have a significant impact on its market price. The price equation has also significantly fluctuated with the rise of new innovations which include:

• The previous predominant role of silver in the photography industry, silver-based photographic films were highly sought after. this has, however, been eclipsed by the advent of the digital camera. 
• The use of silver in batteries, microcircuits, and other related markets. 
• The rise of emerging middle-class market economies in the east has been depicted as enthusiastic consumers of silver-based products. This has led to an explosive demand for this precious metal. 

One thing that remains unclear is the extent to which such developments will continue affecting the demand for silver, for non-investment purposes. Such is something worth considering and keeping a close eye on, based on the fact that the price of silver is affected not only by its use as a store of value and in jewelry manufacture, but also by its applications. 

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Platinum

Like gold and silver, this precious metal is traded on global commodities markets. Surprisingly, this precious metal tends to fetch a higher price (per troy ounce) than gold during times of economic and political stability, owing to the fact that it is rarer. Other factors that significantly affect the prices of platinum include:

• It occurs that platinum mines are mainly found in two nations – South Africa and Russia. This unfortunately creates the potential for the occurrence of cartel-like action that would lead to the rise in platinum prices.
• The demand for catalytic converters in the auto industry, as a result of the passing of “clean air” legislation, has a significant impact on the price of platinum in the market. 
• Platinum is also an industrial metal, just like silver. It has found its use in the manufacture of automotive catalysts that minimize the emission of harmful gasses, as well as the manufacture of jewelry. 

Combined, these factors make platinum the most volatile precious metal amongst the IRA-approved precious metals. 

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Palladium

Not many people know about the existence of this precious metal, let alone its uses. Palladium is a shiny silvery metal that finds its use in the following industries:

• Dentistry 
• Medicine 
• Chemical applications 
• Jewelry 
• Groundwater treatment
• Electronics 

Most of the palladium in the world is sourced from mines in the USA, Canada, South Africa, and Russia. 

Jewelers first used palladium in the manufacture of jewelry in 1939. It is well-known that mixing this precious metal with yellow gold leads to the formation of an alloy that is stronger than white gold. 

Pure palladium is malleable, but it becomes harder and stronger as a metalworker uses it at room temperature. Thin sheets of palladium have found their use in solar energy and the manufacture of fuel cells. This precious metal also happens to be 12.6% harder than platinum, hence is a more durable option in relevant applications. 

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How can one invest in these precious metals?

You can gain exposure to any of the above-listed precious metals by picking one of the following investment options:

• Precious metal Exchange Traded Funds
• Mutual funds and stocks that are based on precious metals
• Precious metal futures and options 
• Bullion / physical metals 
• Certificates 

N.B: The only option that gives you access to the physical precious metals is investing in bullion, which can be done through a uniquely-structured and self-directed individual retirement account known as a Gold IRA/ Precious metal IRA.

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Frequently Asked Questions on “Precious Metal Investing”

1. Are precious metals a good investment?

Precious metals offer investors protection against the forces of inflation. The government cannot order the printing of more precious metals. For there to be an oversupply of these metals in the market, mining companies need to spend a lot of capital on the mining and exploration efforts, which in itself is highly unlikely. Precious metals also provide a low or negative correlation with paper assets such as stocks and bonds. 

This does not mean that precious metals do not carry any risks- they may have short-term volatility that can affect your overall holdings as an investor. You may, however, benefit from these metals if you use them for long-term investing. 

2. What are the advantages of investing in precious metals over paper assets? 

Investing in precious metals presents some benefits over investing in paper assets, which include:

• They are an inflationary hedge.
• Portfolio diversification 
• High liquidity levels
• Easy to buy 

3. What is the best way to invest in precious metals? 

The best way to invest in precious metal is to purchase the physical precious metal, which is my top-recommended option or to purchase precious-metal-based ETFs. Note that while ETFs have a greater potential for the generation of higher returns, they also have risks that are similar to those of paper assets, and can be affected by the state of the global economy just like stocks.

4. What is one major downside to investing in Precious metals? 

Precious metals, unlike many other assets, do not have cash flows, so an individual cannot expect any income until it is time for them to sell their holdings. This is the reason most investors opt to invest in precious metals as part of their long-term strategy.

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That will be all for this post on precious metal investing for dummies. I hope that you found it helpful as a beginner and that it will help you get started in investing in these precious metals on the right foot. Let me know if you have any questions about it, or whether you’d need any help getting started.

I wish you well, 

Eric, Investor and Team Member at Gold Retired!