Benefits of Investing in Gold and Silver

One of the most important considerations when investing is to diversify so that your money isn’t all invested in a single basket. One investment that is well worth considering for your portfolio is purchasing gold and silver. You can invest in the actual metals, collectible coins, or in gold and silver futures, which is similar to stock investing.

Gold and silver investing isn’t for everyone, but this can be a solid investment strategy. Whether you’re collecting coins for the sake of an enriching hobby or for the investment value that comes from future resale, gold and silver can be quite advantageous.

Upward Trends for Silver and Gold

In recent years, gold and silver have both substantially increased in value. Since the year 2000, the price of gold has more than tripled. Since 2005, the value of silver has increased over 600%, doubling in price the past couple of years.

In contrast, the value of the US dollar has been falling. With the US government printing money in vast amounts like never before, the value of a dollar is predicted by many experts to fall further and faster.

As a result, many wise investors are putting part of their portfolio into silver and gold – both for their investment value and as a hedge against the falling dollar.

Here are some benefits of investing in gold and silver:

  1. Security. The investment can be physical rather than just on paper. Many investments are only on paper, such as stocks and bonds. They are virtual investments with nothing physical to back them up. On the other hand, a coin collection is something that you can hold and touch.
    • Due to the physical nature of a coin collection, there is added perceived value because rather than just the value of the metal collection, you can determine the personal worth of your collection by the condition, age, and rarity of the coin in addition to the coin’s metal content.
    • Proof mint, numismatic, and semi-numismatic coins are historically more valuable than bullion coins due to their intrinsic and collectible value on the market. Bullion coins are generally valued only by the amount of silver and gold in them.
    • Even in times in the past when the US government has forbidden hoarding gold by its citizens, it has allowed the collecting of valuable coins because their perceived value goes further than just the value of the silver and gold in them.
    • Many people collect coins not only due to their worth monetarily, but also because of the rich historical value that comes with each one.
  2. There are a variety of ways to invest. With so many different types of coins available, there are a wide variety of ways you can kickoff your investment. You can choose to collect historical coins, new coins, silver coins, gold coins, rare coins, misprinted coins or more, depending on what your individual interests are.
    • If you let your personal interests guide how you invest in coins,  you’ll end up with a completely unique and valuable collection.
  3. The investment can be liquefied easily. Although the amount of money you can receive by selling your collection will vary from coin to coin, a coin collection is generally something that you can turn into cash very quickly.
  4. Anyone can invest in gold and silver. It doesn’t take a lot of knowledge or experience to begin a coin collection: just a little bit of research, some planning, and a love of coins and investing. It’s a worthwhile investment for people of all walks of life – young and old.

Diversifying is important when it comes to investing. You should never invest solely in gold or silver, or solely in any other type of investment. Invest in several different types of investment vehicles, and your portfolio will be much stronger.