Investing in Precious Metals


Throughout history, civilizations have stored value in precious metals. This almost-universal recognition of value makes gold, silver and other precious metals a great long-term investment. Investing in precious metals provides protection against factors that range from inflation to civil unrest.

 

Why Invest in Precious Metals?

Precious metals investing is attractive to investors for a number of reasons. The types of precious metals that are most popular include gold, silver, platinum and palladium. Gold has the benefit of being a durable metal that has, historically, kept its appeal. Investors in the precious metals market go back and forth on silver, alternately valuing it as a store of value and a metal with tangible industrial uses. For this reason, its value is more volatile than gold’s. However, because silver is lower in price, it is easier for the beginning investor to get started.

When investments such as bonds, real estate and the stock market go down, people flock to precious metals because these investments tend to increase in value in times of turmoil. If you have invested during times of certainty, you can make a profit by selling some of your investment when prices go up.

Political crises and wars also cause investors to seek the stability of gold. Physical metals are particularly attractive in these situations, since they are valuable items that you can keep in your own possession for greater security.

The safest portfolio is one that is well-diversified. By having investments in precious metals, stocks, bonds, and cash, you can garner profits while protecting yourself from losses.

 

How to Invest in Precious Metals?

There are various ways to begin investing in precious metals.

An Exchange-Traded Fund (ETF) is a security that tracks a commodity or an index. Gold ETFs are one way to invest in gold or silver. Because an ETF is a basket of funds, it can offer some protection from volatility. However, you need to carefully watch to ensure that you don’t lose profits to excessive commissions and trading fees.

Gold or silver stocks allow you to invest in the companies that mine these precious metals. They can often offer good yields, but they come with the risks of market changes. This is not investing in the product directly. This is investing in companies that have made the product their business, rather than investing in the actual product (gold).

The best precious metals to invest in if you want to protect your wealth is to buy gold or silver in physical form. These precious metals are most commonly sold in bars, rounds and coins. These can be purchased at coin shops, Internet auctions and with many precious metal dealers. Louisiana Coin takes pride in offering fair prices for quality precious metal investments. We offer a wide selection of gold and silver coins, as well as options for starting a gold IRA. Most importantly, Louisiana Coin offers professional consultation to help educate you to best manage your important decisions. Talk to us today about which precious metal investments make sense for you.

 

Most Popular Gold and Silver Metals Sold

AMERICAN GOLD EAGLE

The beauty and power of America, captured in the graceful Striding Liberty design by Augustus Saint Gaudens for the 1907-1933 $20 U.S. Double Eagle gold coin is the basis for the American Gold Eagle coin. The reverse depicts a nest of American eagles signifying the strength and security of American families. The quality and purity are guaranteed by the U.S. government, and by law, only gold mined in The United States is used in the minting of American Gold Eagles. Since its introduction in 1986, its four sizes, 1 oz., ½ oz., ¼ oz. and 1/10 oz., have become one of the world’s most widely traded gold bullion coins.

SOUTH AFRICAN KRUGERRAND

The Krugerrand is the most widely owned bullion coin in the world with over 46 million ounces in circulation since its inception in 1967. It features the symbol of South Africa, the lithe and graceful Springbok antelope, on the reverse side. The obverse of the Krugerrand features Paul Kruger, the last president of the Republic of South Africa. The South African Krugerrand was the first modern government-issued gold bullion coin. It’s marketing campaigns during the 1970’s and 1980’s paved the way for its popularity among the gold bullion coins of today.

CANADIAN GOLD MAPLE

The Royal Canadian Mint is known throughout the world for its impeccable standards of quality and purity in all its products. Because of its fine gold purity (.9999+), its flawless quality and its appealing design, the Canadian Gold Maple Leaf in particular, first minted in 1979, has become the preferred coin for many investors around the world today.

AMERICAN SILVER EAGLE

Started minting in 1986. Silver Eagles have become the most popular bullion coin in the world because of its beauty, quality and the assurance of content by the U.S. Government. The design is based on the famous “Walking Liberty” of Adolph Weinman’s 1916 U.S. half-dollar, widely considered to beone of the most beautiful coins ever minted. By law, all U.S. Silver Eagle bullion coins are struck only from silver mined in the United States.

GENERIC SILVER ROUNDS

The Buffalo Silver Round is a generic silver round produced at various private mints. A silver “round” is different from a silver “coin” because it is not legal tender and carries no face value. A coin is legal tender and is produced by a government mint. The design for the Buffalo Silver Round originates from sculptor James Earle Fraser’s original 1913 Indian Head Nickel, considered by many to be among the best of any U.S. coin designs.

SILVER BARS

.999 Silver Bars are available in several different sizes including 100 oz, 10 oz and 1 oz. Silver bars are an excellent way to invest in pure silver while avoiding the premiums usually found on legal tender bullion coins.

U.S. 90% Silver Pre-1964

Circulated U.S. dimes, quarters and half-dollars minted before 1965 and containing 90% silver are traded based on silver weight. All bags contain $1,000 face value and may contain a mixture of dimes, quarters and halves. Kennedy Halves minted from 1965 to 1969 are 40% silver and are also available.