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Gold and silver have been desirable for as far back as we can measure. Not just for jewelry, but also for industrial and healthcare applications as well. There are plenty of uses for gold and silver in today`s world, and one of the primary ones is to use as an investment. People grow weary of keeping too much cash on hand, since the value of cash depends on people having faith in the currency. The appeal of silver and gold is the fact that they`re tangible, real things that you can hold and that have value beyond just the faith that people place on them. An ounce of gold is always going to be worth an ounce of gold, regardless of the fluctuations in the world`s economy. Gold and silver is seen as a safe place to store your money and to protect it from inflation or reckless government spending. Here are 5 tips to help you shine when it comes to investing in gold and silver!
5. Have A Safe Place To Keep Your Precious Metals
Whether you decide to keep your precious metals in a hole in your backyard, or in a safety deposit box in the bank, just make sure you feel safe with where they are held. Don`t just leave them on your kitchen table, keep your investments safe and secure. Also, consider insuring them in case anything were to happen such as theft.
4. Or Let Someone Else Deal With The Storage
Alternatively, you can invest in gold and silver ETFs (exchange traded funds) where you don`t actually take possession of the metals, but rather you buy shares that represent the metals that are stored elsewhere. You will have to have faith in the company running the fund that your metals are actually there, but this can be an easier option for the average investor and you can purchase smaller quantities without paying extra for doing so, which you would have to do when buying the physical metals.
3. Dollar Cost Averaging For Long Term Success
If you want to invest long term, rather than making one big purchase and trying to time the market, why not buy a little bit at a time, at regular intervals, and always spend the same dollar amount? It`s called dollar cost averaging. This way, when the price of gold goes up, the value of your existing holdings will rise but you`ll get less gold when you make your next purchase. However, if the price goes down, you don`t need to worry because you`ll be able to purchase a larger quantity of gold for the same amount of money. Imagine you spend $300 per month to invest in gold, no matter what the price per ounce is. That $300 will buy you less gold when the price is high, and it will buy you more gold when the price is low, so by dedicating yourself to spend the same dollar amount at each interval, you`ll never have to worry about the month to month fluctuations in the price.
2. Ignore The Day To Day Fluctuations
Don`t spend all day watching the tickers and stressing out over it, in any open market the price is going to fluctuate on a daily, weekly, monthly and yearly basis but when you`re in it for the long term, especially if you`re dollar cost averaging, you really don`t have to worry about that. If you for any reason decide to sell your gold, there is a big market where you can sell it in reasonable good prices.
1. Get In While You Can
The price of gold and silver has pulled back slightly this year, which means that you`ll be able to get a greater quantity for investing the same amount of money as you would have a year ago. Part of this pullback is due to people who had earned massive profits over the past couple years deciding it was time to take a little bit of their investments off the table, to count their winnings so to speak. When you`ve earned a huge amount of money by investing, it can be wise to pull back a little bit, and that`s what a lot of people did in the gold and silver markets. This, in turn, makes it an excellent time for new investors to enter the market at a much lower price than before!