Consider Adding Metals to your Investment Mix

physical-metal-silver-golden-state-mintHolding something of quality in your hands–there’s something about it that inspires confidence. A flawless leather shoe, an impeccable piece of Waterford crystal, a perfectly weighted knife, or a solid precious metal round can remind you that some things are meant to endure. Reading a list of numbers on an account statement can tell you things, but we don’t invest simply for the things we know. We seek that feeling of confidence that building wealth and providing protection against loss can bring. Any non-currency coin-like product is called a round.

You’ve heard the word: Diversify. That’s as much of a safety net as you can get when you try to invest and build wealth. Diversification often gets left off at the spread of funds available. Adding gold, silver, and copper into your mix of investments provides an additional layer of diversification you may not have considered.

Gold is well-known as a hedge against inflation. To a somewhat lesser extent, that also applies to silver and copper. Most financial advisors encourage holding metals in your portfolio, and there are several ways to do it. Metals can be traded on a stock exchange in different notes and funds. However, these vehicles carry the same caution as other exchange-traded entities: Don’t invest in something you don’t understand. The trading of metals as commodities involves understanding all the factors that cause the price volatilities, and that can take years. If you need to get started sooner, consider holding physical metal.

Physical metal is a broad category and includes bars and rounds of precious and semiprecious metals, most commonly gold, silver, and copper. Holding physical metals in your investments can reduce the anxiety produced by watching the market price fluctuate and wondering what the right next move would be. Somehow, looking at a bar or round in your hand makes it possible to say, “I have this” in a way that a line item on a brokerage statement just doesn’t. If you aren’t comfortable having the bars or rounds in your home but still want to own them, they can be stored at a depository for you.

Don’t overlook physical metal when working out your retirement plan. Physical precious metals can be held in an IRA and provide the same tax advantages as any other IRA. There are special rules in place that must be followed for your physical metals to qualify for inclusion in an IRA, but they are not difficult to understand, and they are not particularly burdensome. For a clear explanation of the process, take a look at Golden State Mint’s explanation of the steps.

If you decide to hold your metals yourself, you can choose bars or round rounds. (The US Government mint sells rounds only.) Both bars and rounds are offered in multiples of ounces and in fractions of ounces. Bars are bars–they are stamped with the name of the mint and the weight of the bar. If you are going to buy metals and hold them yourself, why not enjoy owning something beautiful? Both the US Mint and private mints offer rounds commemorating many events and celebrating a variety of interests. Here are just a few examples offered by Golden State Mint:

Your group can also design your own custom round. This could be an innovative way to reward excellence, or promote unity in your group, while encouraging investment and fostering an interest in collecting.

You can probably start adding metals to your investment mix sooner than you thought, and have items you can enjoy as well.

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Be a Successful Investor in Silver Bullion and Gold Bullion

When many people think about investing in gold and silver coins, they really think about coin collecting. While coin collecting involves finding interesting and unusual coins for the abstract-business-concept_mJOwe-purpose of creating a group of great variety, investing in gold and silver is more focused on buying coins, rounds and bullion for their monetary value.
Coin Investment Categories
There are four main areas of coin and bullion investment:
1. Rare, certified U.S. coins – Focused primarily on gold coins, these are very different from bullion. Today, many investors purchase American Eagle coins or Silver Buffalo rounds, but these are not rare coins. Items such as a $2.50 gold piece dating back to 1946 are hard-to-find and certified, making them worth thousands of dollars.
2. Certified ancient coins – Expanded to include more than just the coins produced in the U.S., these ancient items can be worth thousands as well, especially for those who are interested more in the value than in collecting.
3. U.S. coins that are “key dates” – In every series of coins, there are key dates that are produced in fewer quantities and that are more difficult to find. These become even more valuable because investors look for complete sets to bring full value.
4. Bullion bars and rounds – Many different artistic and representative iterations of adored designs are now freshly created by private mints. These genuine-article bars and rounds are securely ordered directly from these locations and are a great addition to private collections.

Reasons to Invest in Gold and Silver
The values of gold and silver bullion are at a significant low, fetching 43 percent less than it did in 2011. This makes these bullion options a steal. Investors know that eventually these rock-bottom prices will take a turn upwards, adding significant value to those pieces of bullion. Many investors are taking this opportunity to buy silver bullion online or to find gold bullion to buy online. It may seem like poor timing right now, but this is actually the ideal opportunity to get into the investment game.

For those individuals who are not interested in purchasing and storing bullion, another investment opportunity is to purchase collectible coins. In fact, many people are turning to this method of investment, as evidenced by the exponential growth of coin sales since 2014.

The U.S. mint makes many collectible versions of bullion available for purchase as coins, including the American Eagle gold coins and the Silver Buffalo rounds, two of the most popular coins used for investment. Likewise, private mints are able to recreate these designs, as well as other popular options such as the Walking Liberty and the Incuse Indian rounds and bars, in a variety of sizes. The benefit of collectible coins’ value is that because only a limited quantity were created, the demand often exceeds the supply, making these coins even more valuable.

Be a Successful Investor
The true secret to any good bullion or coin investor is to be sharp and always on the lookout for good deals. It is very easy for investors, especially those who are new to the operation, to get sidetracked by the look, shine and potential value of their purchase rather than to carefully examine each and every specimen that passes their way. A truly good investor enjoys the coins and bullion, studies them in depth and is ably to quickly and accurately assess the potential value.

This is especially true for gold bullion buy online and for those who buy silver bullion online. Internet purchases are much more difficult to investigate, and it takes some patience to find the right investment overall.

The best thing that any potential bullion or coin investor can do is to not be in a rush to complete an investment collection. Giving each new piece proper time for research and investigation will help investors to find the best specimens at the best prices, and the knowledgeable and helpful staff of GoldenStateMint can provide this guidance for new investors. With over 40 years of experience in coins, bullion and bars, GoldenStateMint can lead the way through the process of purchasing its inventory.


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Precious Metals Investments

saving_08252015Today’s news makes the case for why all investors should keep at least ten percent of the portfolio in precious metals. After stock market declines this week, we reflect on how quickly the markets for stocks, bonds, and other financial assets can change. The ability to “buy low and sell high” is every investor’s dream, but averaging the cost basis of gold and silver makes long-term financial sense.

It is true that precious metals prices soar during moments of panic. People worry about China’s economy slowing down or the U.S. stock markets’ consolidating. Either of these worries should not worry anyone. China’s economy has continued to grow at a remarkable rate for years and the U.S. stock market typically rests every five years or so. A bear market is overdue.

Interest Rates and Inflation

Concerns about the yield curve, interest rates and inflation are everywhere. Investment in almost any asset benefits from low rates with the exception of income investing and inflation-sensitive investments. Central banks around the world have recently indicated that the cost of money will start to rise next month through the end of the year.
Rates will rise with inflation. Income investors and fixed income asset managers are happy. For the past few years, real returns in fixed income have been negative or negligible. Investors are rebalancing portfolios in earnest. The stock market’s “nowhere to go but up” premise is unsustainable.

None of this information is new. None of the information should inspire panic. Markets rise and fall with supply and demand. A long-term and conservative approach to investing in gold and silver, stocks, bonds, and real estate benefits investors. Over the long-term, investors’ assets tend to rise in price.

Gold Trading

An uncertain global economy tends to favor investment in gold. Gold is now up seven percent from five-year lows. Daily volume of futures contracts have approximately doubled the number of daily average. China’s currency devaluation or Greece’s possible Eurozone departure are certainly triggers. However, it’s also smart investing to buy when prices are low and the outlook for future price appreciation is high.

The Commodity Futures Trading Commission (CFTC) data, recorded since 2006, reflects the turnaround of bearish sentiment in precious metals. Short positions, or bets placed that gold’s current price will decline in future months, were covered at record rates this month. Long purchases, reflecting buyer sentiment that gold prices will rise, simultaneously increased. So-called “fast money” of hedge funds committed to these contracts shows that professional investors are bullish about a rising gold price.

Sovereign Gold Acquisitions

According to the World Gold Council, European countries’ appetite for gold increased over the past three months. In contrast, global market demand declined 12 percent to six-year lows. German buying of gold bars and coins increased by 24 percent in Q2 2015. Austria and Switzerland’s buying closely followed that of Germany.
Analysts at the World Gold Council believe that Greece’s possible Eurozone exit prompted the rise in retail investors’ acquisition of gold. The European market outpaced India’s lead position in the purchase of physical gold and coins.

Over the prior 18 months, Russia has continued to buy gold. In fact, Russia’s gold purchases are thought to represent 13 percent of sovereign reserves. Russian government has increased its gold stores by 300 percent in the past ten years.
The head of the Russian central bank announced that it will continue to buy more gold over the next few years. Analysis of the World Gold Council believe that the country views gold as an essential reserve component.

European Central Bank

Individual investors in Europe seem concerned about the European Central Bank’s money policy. The ECB’s announcement that it will begin a €1.1 trillion bond repurchase program in Q1 2016 may have stimulated the purchase of gold.
Gold is often considered as a hedge against inflation and wealth purchasing power. The ECB bond repurchase program is likely to cause the euro currency to decline against other currencies on foreign exchange markets.

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