why and how to invest in precious metals? Gold can hold value well over a lifetime and is a universally recognized precious commodity that has a certain significance in our world. If gold and silver are the most popular coins in the world, then surely they must represent the most precious gems on earth. The same is true when it comes to investment. If you are looking for an investment that is rich in intrinsic value and remains affordable over time, then the precious metal markets are definitely for you. However, if you aren’t looking for that, or are seeking an absolute guarantee that you will never see your gold appreciate further than its intrinsic value, then you would do well to look elsewhere. For this is the danger of buying precious metals. Not only can they lose their value, but they will lose value dramatically. Even as we say that these precious metals are “rich” in the sense that we can only appreciate what is in them, if those materials end up not being as abundant or as plentiful as their history indicates. Especially in the wake of the 2008 financial crisis, gold and silver prices are sliding and losing value rapidly. If you are thinking of buying precious metals for your own stash, you could either be looking at gold bars or American Eagles.
Although these products are similar, they aren’t the same. At approximately $5,000 per gold bar and about $40,000 per American Eagle, these are not your everyday investment, unless you are looking to max out your investment with a bunch of gold and silver for future use. In this article we’ll cover the various ways you can buy precious metals, their worth, and why you should keep a very close eye on your holdings. Let’s go ahead and dive into the gold industry first, and it isn’t long before we make our way into silver and platinum as well. The gold and silver industries are two of the most important in our lives. They are the sole sources of the world’s precious metals and also the only ones that are not controlled by the government or the military. So, it really is a good idea to learn as much as you can about both. Getting started is as simple as buying an inexpensive Gold Certificate or Silver Certificate. You don’t want to waste your hard earned money on something with such a high price tag. If you don’t want to use the coins, these are available in $1, $2 and $5 denominations. The important thing to know is that both types will do the job just fine, if not better.
Let’s look at the Gold Certificate first. An ounce of Gold is priced at approximately $1300 per ounce. There are two kinds of Gold Certificates currently available in the United States. They are Gold Certificates with Certificate of Authenticity and Gold Certificates with Gold Content. The Gold Certificates with Certificate of Authenticity are for non-legit stores and businesses. They bear a secure stamp of the U.S. Mint, and most typically are found at banks, insurance companies and others that are selling gold products. The Gold Certificate with Gold Content may be smaller in size, but is often used in bars. These are hard to come by, and can often be found at gold dealers who buy and sell bars or bullion. Gold Certificates are available in as small as.04 ounces and as large as 2 ounces. We recommend that you buy the smaller size and leave the more expensive sized Certificates at home. For more info here at https://www.silver-eagle.us/.
A K, or Karat (or karat is spelled out), is the percentage of a precious metal that consists of gold. Of course, gold is the most common of all precious metals and is worth about $12.40 an ounce. However, not everyone is wealthy. In fact, the average household income in the U.S. in 2014 was about $55,570. Gold is only worth about half that amount. As a result, more and more people turn to investing in precious metals. However, sometimes gold and silver get confused with carat, karat, and karat. understanding the difference between those words you will be a diamond expert. For example, some people are confused when purchasing precious metals with similar names such as K and Kt and the average consumer doesn’t know why. The same problem exists when people assume the stock market is a store of value when in fact, it is simply a machine to artificially prop up our purchasing power. Don’t believe me? Just take a look at the chart below from www.collatergys.com. The green line represents the share price of the most popular stock in history, IBM. The blue line represents the average price of IBM shares in the past year. It is evident that the stock market can be a bad investment. It’s just that so are precious metals.
When it comes to currency, as explained by cbsnews.com, precious metals are also valued because of their relatively high weight and silver is said to be the “real money.” Compare this to the U.S. dollar which is technically a fiat currency, which is backed by nothing other than government officials printing dollars as necessary to fund government spending. It is best to consider precious metals and diamonds as an investment, a hedge against inflation and the various financial catastrophes that could destroy the economy, not as an investment, not for dollars, but for precious metals and diamonds. Let us look at precious metals and diamonds separately to understand the distinction. Diamonds are commonly made from the rough cut of any mineral, but pure, unadulterated diamonds are the most valuable of all.
I don’t know why people would buy diamond rings, but a diamond ring (aka cutter) usually comes from a fully intact, polished and flawless gem stone that is so natural and rare that a diamond cutter would actually spend years to make sure that the diamond would shine. This process, of course, takes a fortune and is not something you can afford with a day job, unless of course you are a certified diamond cutter. A properly done diamond will probably be worth thousands of dollars and, if not a diamond, then a rare colorless pink diamond is. So, it makes sense that a diamond cutter would also be compensated when selling diamonds. However, the person who buys the diamond will likely pay much less.
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