Best Way to Invest in Gold and Silver for Beginners: 5 Different Paths

What is the best way to invest in gold and silver?

As uncertain economic times loom over the horizon, it can be challenging to find suitable investments. Fortunately, gold and silver are safety nets for most buyers and sellers. Historically, these materials are popular investments even during global conflict and recession.

In the modern world of stocks and bonds, you can trade gold and silver through numerous channels. Some yield higher risks than others, but you can still reap the benefits of these strategies with the right wisdom.

Still, it may be difficult for some to find the right paths for buying gold and silver without help. It can be a competitive yet worthwhile market from which many seek to benefit. So, what are the best ways to invest in gold and silver?

Precious Metals IRA Guide attempts to make it easier for beginners to understand the value of these materials. Below, we lay out a comprehensive list of valuable investment solutions.

Gold Investing | What to Know

The popularity of gold investing comes from a long history and scarcity.

Gold is a popular commodity that spans centuries and cultures. Many leaders and states minted gold coins to strengthen their economies. That attachment to currency is still present in most nations today.

Gold is also a malleable metal, making it excellent for jewelry. By most estimates, around half of the world’s gold demand is for jewelry manufacturing and distribution. Since this material’s cultural and monetary value is high, it withstands the most unstable market fallouts.

This metal also serves functional purposes. Modern technology and medicine can utilize gold properties to enhance products. Entities from all over the world compete for the ownership and production rights of gold mining facilities.

Gold isn’t going anywhere anytime soon, which is why gold investing makes sense when stock market fears arise.

Silver Investing | What to Know

Silver, like gold, is closely attached to many forms of currency. Bullion coins are the most tangible example of silver investing. Though silver is still a rare physical commodity, it is generally less valuable than gold.

Despite this, it maintains its value during uncertain times and shows a positive cumulative return. In fact, between 1970 and 2020, the value of an ounce of silver grew from $1 to $18.

Silver investing is a wise choice for beginners who may not be able to afford gold right out of the gate. A precious metals IRA typically includes these options in its inventory due to high demand and accessibility for incoming investors.

Some younger investors begin with silver to build a healthy portfolio in precious metals while they save up for more expensive commodities.

Let’s look closer at some of the avenues for finding the best way to invest in gold and silver.

1. Physical Gold and Silver (Bullion)

A gold bullion weighs anywhere from several grams to several hundred ounces. However, these bullions are typically expensive investments for many beginners. That is because an ounce of this metal sits around $1,900 (2020 estimate).

Not only will you need to pay for the physical commodity itself, but also its transportation and insurance. Bullions take the form of gold bars in many cases and require careful handling.

Their physical nature makes it nearly impossible to purchase a fractional share of gold. That is why many investors look instead to silver bullions.

Silver bullions are lighter and less expensive. Silver coins also make the purchase and storage of these investments more convenient.

Stay vigilant for commemorative gold and silver bullions. Sellers usually mark up the price of these items significantly.

2. ETFs (Exchange-Traded Funds)

Exchange-Traded Funds are accounts that purchase materials like gold and silver on your behalf. Mutual funds like these allow you to enjoy working with gold without the inconveniences of physical ownership.

For investors that want to diversify their portfolio, this solution works. That is because very few accounts invest strictly in gold or silver. They will continue to find other worthwhile commodities that boost their clients’ gains.

You can explore several ETFs on the market, but always complete thorough research before committing. Keep in mind that these accounts will charge a fee for working with gold and silver. Despite this, these expenses are usually more manageable than the insurance and storage of metal.

For some investors, ETFs streamline their trading experiences. Just remember that the value of mutual funds may not always match up with the market price of gold. These accounts trade paper, backed up by debt and contracts for bullions.

This fact may drive some investors away. Still, ETFs may be a practical solution if you want to find the best way to invest in gold and silver.

3. Mining Stocks

Gold mining is a lucrative industry —one that you can share the rewards in by investing. This method splits physical investment with stocks.

You can share the profits of gold mining by investing in the source. However, like traditional stocks, these companies can be highly speculative. Gold miners are subject to laws, regulations, workforce, and credit liquidity.

Capital costs are usually high, and it could take months or even years to receive proven deposits from these companies.

You should also consider the location of many of these mining facilities. Due to historical conflicts and geographic limitations, many of these companies operate in high-risk nations. The transition of ownership, shutdowns, and wars can significantly impact the success of your investment

Because of this, it can be risky to bet solely on mining stocks and bonds.

4. Gold & Silver Futures

You can sign contracts that agree to buy and sell gold at a given date. This method helps you circumvent current market conditions. Investors call these gold and silver futures.

Because of the high price of gold per ounce, investors typically require significant capital to engage in these deals. Investors need to partner with an online broker that trades in these securities. If you have the means to try this contract, you can enjoy options that help you leverage your initial investment.

One advantage of this strategy is that you can quickly buy and sell gold through an online service. The catch is that you must keep a close eye on your holdings and exercise your options before they expire.

Most experts view this strategy as the riskiest. Newer investors should stay clear of this option until they have the capital to trade in this avenue safely.

5. Gold & Silver IRA (Precious Metals IRA)

According to many financial advisors, a precious metals IRA is one of the safest investment strategies; new and veteran traders consider this the best way to invest in gold and silver. These retirement funds help you invest in boosting your long-term returns. Precious metals IRAs continue diversifying your portfolio by trading other things like real estate or cryptocurrency.

The metal must be high-quality to invest gold and silver in these accounts. Still, you can enjoy dozens of precious metals IRAs that accept bullions of many shapes and sizes.

Gold and silver IRAs deliver many of the same tax advantages as traditional retirement funds, making them an excellent solution for any investor. Adding these low-risk investments to your account allows you to build a safe retirement fund for your golden years.

Younger investors benefit from securing gold holdings early due to its high value. While you can share the rewards of gold investment later in life, making these large payments closer to retirement can be riskier.

These accounts will usually charge a setup fee of up to $150. The IRS dictates that investors cannot store gold in their homes, so additional storage fees may accrue depending on the volume of gold or silver you need to store.  Below is a sample of several precious metals IRA companies.  

Goldco

Goldco is one of the most popular IRAs for every type of investor. The Better Business Bureau rates this company with an A+ for its stability.

Representatives of this company offer investment education services. These programs help customers understand the value of this self-directed IRA.

Many individuals choose Goldco for its extensive selection of gold and silver bullions for IRA holdings.

Augusta Precious Metals

Augusta Precious Metals offers some of the best upfront pricing on the market. In addition, the  company provides many customer safety nets for their IRA. One of these perks includes a seven-day price protection agreement.

You can enjoy several gold and silver storage options by partnering with this company. They include transparent information and keep you up to date with gold prices. This way, you fully understand your investment.

Birch Gold Group

For the best way to invest in gold and silver, Birch Gold Group makes it easy. This company also excels with an A+ rating from the Better Business Bureau. You can learn about some of the best gold and silver investments through their services.

The company also makes opening accounts and transferring funds relatively painless. Birch Gold Group offers a wide range of non-IRA investment options so that you can diversify your portfolio safely.

Regal Assets

Regal Assets allows you to store your gold and silver in IRS-approved facilities. They trade in high-quality gold and silver bars, platinum, and cryptocurrency. This company also offers numerous investment packages to diversify and strengthen your portfolio.

Many investors choose Regal Assets to avoid fees for IRA rollover and transfers. Flat-rate storage options also help this company stand out from competitors.

Nobel Gold

Nobel Gold works with numerous refineries and distributors to provide the most investment options for their account holders. Their model ensures that every customer can begin their investments on an equal footing. Choosing Nobel Gold allows you to take advantage of their buyback service at any time should disasters or opportunities arise.

This company trades American Gold Eagle coins and Canadian Gold Maple Leaf coins, to name a couple. You can enjoy competitive prices on their precious metals.

The Takeaway: Choosing a Gold IRA

Investing in bullion coins and finding a suitable gold IRA are wise choices for newer investors. Precious Metals IRA Guide helps you find the right company.

We conduct an in-depth analysis of the pros and cons of gold IRAs. This way, you can find an account that will diversify and enhance your retirement fund. Our information is specific about the types of bullions in circulation and what services offer the best returns.

As an investor, you want to secure the best deals for your money. Enjoy the tax benefits that come with owning these accounts and gain access to numerous storage options.

Why wait to begin a wise investment? Start exploring numerous precious metals IRA options.

For more information on the best way to invest in gold and silver, contact Precious Metals IRA Guide today.  You can also visit our full review of the best precious metals IRA companies.