Buy gold or silver? Now is the time to hedge your investments by buying gold and silver

You’re interested in buying gold or silver; How can I buy gold or silver is a really big question that begs many other questions. Like how to buy gold at best prices? What is the spot price of gold? Why do you have to pay more than the spot price? What form will the gold be in and the big one; where can I buy gold?

The actual price you pay for the gold or silver you buy will depend upon the form of the gold or silver, coins, bullion etc. It will also depend on the mark up of the seller and most of all you will always buy gold for more than the current value of the gold at the point in time when you buy it.

The people and places to go to in order to buy gold or silver are other gold collectors, mints, precious metal dealers, auction houses, post offices and even shops. The money you hand over when you buy gold or silver can vary considerably and it pays to shop around first.

The aim of course is to buy gold at the ‘best’ price i.e. the lowest possible and this means the best time to buy gold or silver is NOW! You see gold seems to be on a steadily increasing price curve. So if you buy today it will have gone up in value next week and will continue to rise in value steadily.

Some top tips when you buy gold or silver.

  • Ask yourself ‘what am I getting for the mark up over the spot price’? When you buy small gold coins with little gold content but lots of fancy presentation packaging you may not be getting best value.
  • When you buy solid gold coins and bars you are getting get more gold per dollar. The mark up on bullion is generally less than on coins.
  • Buying in bulk is generally better value. Because you most likely want the gold as a safe haven investment the less you can buy gold for the more you will increase your return.
  • The closer to the source of the gold the better the value. Buy gold bars direct from the mint and you avoid paying the margins at every stage of gold marketing. This means no transportation costs, no middlemen mark ups and less security and insurance costs.

In these troubled economic times the price of gold tends to rise more rapidly than in good times. This is simply because more people want to buy gold and silver. It will never let you down in the way of banks and stocks.

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Buying gold to hedge your 401k is a smart bet

With the way the economy is going, you have to look at your options when it comes to hedging your investments, and gold is a great option. Not only does it hedge against a volatile stock market, it hedges against currency fluctuations as it relates to the dollar or your local currency. Since the US Federal Reserve no longer has the requirement to back the dollar with any collateral, and the dollar is fiat money, it is a good idea to make that investment in gold. You may have noticed the price of Gold has skyrocketed to unprecedented levels in the past few recent months, as investors flocked for the safety in Gold. Other types of hedging may include Oil and various other commodities.

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