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The decision to begin investing in gold and silver is only the very first step in a process. The subsequent choice you’ll need to make how you’re going to go about making the investment. You’ve got different options, each of which has its own positive and negative aspects. This article covers three of the more standard approaches used to adding some investment metals, primarily gold and silver, to your investment portfolio.

Invest in gold and silver mining companies. The first way will be the simplest, most conventional and most common – simply invest in precious metal mining stocks. In fact, this is how your investment advisor would most likely advise you to invest in gold and silver, by purchasing the stock of companies that discover and mine the metal of your choosing. Most people think stocks, bonds and mutual funds when they think of investing which makes this alternative a simple option. The good news is that there are many gold and silver mining organizations whose stocks are traded on the various stock exchanges. You’ll also find mutual funds that specialize in various segments with the mining market – gold, silver, platinum and the more exotic metals as well. Buying gold by investing in mining stocks is an indirect way of diversifying into the precious metal field and it has the added advantage of ease and familiarity – purchasing stock is purchasing stock. The underlying asset is of little consequence.

As the demand for well performing assets increases this approach can be a quite profitable. It also is an effective way to diversify your investment portfolio and make the most of the relative strengths with the precious metals marketplace. The chief disadvantage is that individual mining stocks typically move with the common stock market which might not correspond well with the cost of the metal in the marketplace – situations may arise where gold and silver prices are moving in the opposite direction of the stock price.

Buy shares in a precious metal Exchange Traded Fund (ETF). The second investment method for investing in precious metals is to buy an Exchange Traded Fund or ETF. In theory these ETF’s buy and store gold, silver and other precious metals and then sell shares that represent the value of these precious metal reserves. The price of the stock should be representative of the metal price. Getting an ETF is exactly like acquiring your standard stock. The ETF’s trade on the stock exchanges just like common stock.

Just like with mining stocks, investing in precious metals using ETF’s is easy and familiar – people simply trade gold and silver inside their account in the same manner they purchase and sell stocks. The primary difference between an ETF representing a particular precious metal and a mining stock is that you are supposedly acquiring the actual metal, not a share in firm. Of course you never ever really know for positive that the gold or silver is there but in theory your investment is backed by a store of precious metal. For the portion of your investment portfolio this is an effortless strategy to diversify your investments into gold and silver.

Physical Gold and Silver. The third way to invest is by actually purchasing physical gold and silver bars and/or coins. Of the three strategies I’m discussing this is the least common, even though this is the only way you can purchase gold and silver in which you know without the shadow of a doubt that you actually own the particular precious metal. Whether you buy a coin or a bar you will be able to actually hold it with your hands. Because of this certainty you should have a portion of your precious metals investment in physical form. My recommendation, especially when just starting out, is to invest in and own gold and silver coins. These two metals are readily recognizable, have real worth and are easy to store and trade. Coins are easier to find and require a much smaller investment than bars, so for many individuals owning coins is the very best method to own physical gold and silver. As silver and gold are the most common monetary metals there really is no reason to own any other metal.

How do you get started? Well, if you’re an American citizen American Gold Eagle coins are probably the best way to start out. Produced by the United States government mint they are easily recognizable can be converted quickly to cash. For your silver investment I recommend starting with pre-1965 junk silver coins, although silver eagles are also a great choice. All of these choices are easy to find wherever you might be located either at a coin shop or online.

There you might have it, the three best techniques to own gold, silver and other precious metals. The most important decision is the decision to protect your wealth and financial livelihood with precious metals. The next decision, as to what form your investment should take, is relatively easy. The important thing is to make that decision now.

About the Author

Steve Chambers has been investing in precious metals for many years and strongly encourages all investors to hold a portion of their wealth in physical gold and silver coins. His web site, JunkSilverOnline is designed to be a resource for people interested in protecting their wealth and contains details on silver investing, specifically junk silver coins.

Brief intro into why you should buy gold and silver and what the dollar bill is worth…. Get prepared today for tomorrow!!!!
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