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Gold and Silver: Investment Types & Trends

Gold and silver have long been valued as secure investment options. Explores the various ways to invest in these precious metals, including bullion, coins, and IRAs. Discover market trends, benefits, and strategies for diversifying your portfolio with these timeless assets for long-term financial security.

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What is Gold and Silver Investing?

Gold and silver investing involves purchasing these precious metals in various forms, such as physical bullion, coins, ETFs, or through investment accounts like precious metal IRAs. Unlike traditional investments, gold and silver offer a tangible asset with intrinsic value that can hedge against inflation, currency devaluation, and economic downturns. This type of investment provides diversification benefits, as gold and silver typically have low correlation with stocks and bonds, making them valuable for balancing risk in a portfolio.

    

 

Ways to Invest in Precious Metals

There are many ways to invest in precious metals:

  1. Physical Bullion: Buy gold, silver, platinum, or palladium bars and coins. Physical ownership offers tangible assets but requires secure storage and insurance.
  2. Precious Metal IRAs: Self-directed IRAs allow you to include physical metals, providing tax advantages and portfolio diversification.
  3. ETFs and Mutual Funds: Invest in funds that track the performance of precious metals without owning the physical assets.
  4. Mining Stocks: Buy shares in mining companies that produce gold, silver, or other metals.
  5. Futures and Options: Trade contracts based on the future price movements of precious metals.

IRS-Approved Metals for an IRA

You can hold 4 different precious metals as part of a precious metals IRA:

  • Gold: Must be 99.5% pure (e.g., American Gold Eagle, Canadian Gold Maple Leaf).
  • Silver: Must be 99.9% pure (e.g., American Silver Eagle, Austrian Silver Philharmonic).
  • Platinum: Must be 99.95% pure (e.g., American Platinum Eagle).
  • Palladium: Must be 99.95% pure (e.g., Canadian Palladium Maple Leaf).

These metals must meet purity standards and be held by an approved custodian in an IRS-approved depository.

Recent Gold Trends

The price of gold has increased by more than 825% since January 2000.

Central bank gold purchases have skyrocketed since 2022.

Just this year (2024), the price of gold is up more than 30%.

The Bottom Line

Investing in precious metals offers various options, from physical bullion to precious metal IRAs and market-based investments like ETFs. Gold, silver, platinum, and palladium all have unique benefits and requirements for IRA inclusion. With gold prices soaring and central bank demand increasing, precious metals remain a valuable addition to diversified portfolios.