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Beginner’s Guide to Precious Metals

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by Gainesville Coins

Whether you’re prepping for a minor power outage and SHTF, or just to collect coins for whatever reason, there are a ton of benefits to investing in precious metals.

So what exactly are precious metals?

According to Investopedia.com, precious metals are, “A classification of metals that are considered to be rare and/or have a high economic value.” They are highly liquid assets, meaning they can be bought and sold with ease.

The most well known precious metals are gold and silver; however, a few other well known metals are palladium and platinum.  Copper, though valuable, is sometimes mistakingly considered a precious metal due to its use in coins and investment value, but it is still considered a base metal due to being plentiful and easily oxidized.

Differences between gold and silver

The main differences between gold and silver from an investment standpoint is that silver is by far the least expensive of all the precious metals, trading at a rate comparable to base metals. Silver, however, also see’s a lower premium (the charge that allows dealers to make a profit).

Additionally, while gold and silver are both considered forms of currency, central banks do not hold silver as part of their reserves. On the contrary, central banks hold a significant amount of the world’s known gold.  Gold is exponentially more valuable than silver, and is used as an investment to hedge against inflation. I guess preppers aren’t the only ones getting ready for another bank crisis!

Here are more facts

  • While the dollar typically loses value during times of economic hardship, gold and other precious metals generally retain their value or increase in value. This makes them an excellent way to hedge inflation.
  • Although gold is a rare commodity, it is mined on six continents. This makes it easier to get a hold of than other rare items.
  • The value of precious metals is recognized internationally.

Purchasing precious metals

Gold and silver comes in several forms, including bullion bars, coins and rounds. While all of these are easy to store, bullion bars and rounds typically carry a lower premium than minted coins, which often have numismatic value in addition to the value of their metal content.

You can purchase gold, silver, and other precuous metals in person or online, the latter usually having the lower premium. Do your research to choose a reputable dealer and review their credientials, such as their BBB rating and length of time in business.

Ultimately, investing in precious metals is an excellent way not only to prepare for the collapse of the dollar, but to store wealth as well as diversify and hedge your  investment portfolio against inflation.

Don’t let your family get caught and your family off guard, start looking into precious metals for your own financial preparation!

By Damian Brindle

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