Definitive guide to investing in gold and silver

How to invest in precious metals?

There are currently three different ways to invest in precious metals, investing in physical metal, buying stocks (ETFs) or buying futures gold ira companies reviews. Obviously, only in the first of these options we will be investing in physical metal, coins minted by the mint of each country or ingots from recognized refineries. In this guide we will focus on investing in physical metal, as it is the safest option for individual investors.

In this article you will find some tips that will help you make your investment with complete confidence, as well as an explanation of some basic concepts that you must take into account to make your investment in physical gold and silver.

Why investing in gold and silver is a good option?

Investment in precious metals in physical format is mainly characterized by not being subject to the volatility of financial markets, since, when investing in a tangible product, its value is more stable than investment in the stock market through stocks and / or bonds. .

Both gold and silver have their peculiarities when investing, since the use that each of them has is different and consequently also their demand.

Gold is the precious metal par excellence and is used mainly in jewelry, it is a malleable metal with low alterability with a golden color that makes it very attractive. Silver, on the other hand, is a more abundant metal than gold and is also the one with the highest thermal and electrical conductivity. On the other hand, silver is non-toxic and has antimicrobial properties, which also expands its use to the field of medicine. 

Both precious metals are considered as safe havens, since they are unrelated to the movements of the financial markets and are also an investment with a low risk compared to other types of investments.

The 3 essential tips for investing in gold and silver

1. How much should I invest?

According to experts, it is advisable to invest in precious metals 5-10% of your investment budget, making monthly contributions, although the amount of the investment will ultimately depend on the objectives, the budget and the time you want to sustain your investment.

2. Which products to invest in?

If you want to invest in physical products, you will know that there are several options to choose from, not only between different metals but also between different formats. The most common metals are gold, silver, platinum, palladium, and rhodium. At Andorrano Jewelry we have products in gold and silver, both coins and bullion, which are the most common for investment.

Gold has the main characteristic of not being subject to VAT or any other tax rate, both bullion and coins, making it the most attractive investment for private investors. This metal can be purchased both in coins and bullion. The coins are backed by the mint of the country that minted them, while the bars are minted or melted by distinguished refineries. As for the denominations of the products, you can find 1 oz, ½, 1/4, 1/10 coins and even smaller denominations such as the 1 g Panda coin. Currently the bars are also minted in small and large denominations, so you can find bars from 12 kg to 1 g.

Silver, on the other hand, having a mainly Ingot gold coins industrial use , a 21% VAT is applied in Spain in the case of bullion, and a special tax rate in the case of coins.

For this reason, historically, silver has not been an interesting investment for private investors, because adding 21% VAT to the product makes it more difficult to amortize the investment. However, today there are very interesting options for private investors, such as the purchase of silver without VAT, which consists of the purchase of physical bars that are located outside the country of residence, stored in security vaults from the that the physical product can be bought and sold without tax.

As the main characteristic of gold, it should be noted that its value is maintained over the years. For example, if 100 years ago you could buy a good suit worth an ounce of gold, today you could buy the same product for the value of an ounce today. 

It is convenient to invest in products with small denominations so that, in the case of wanting to sell a part, we can do it more easily.

3. Basic concepts you should understand

Spot price

The spot price is the agreed price for transactions with a specific product and at a specific time, it is constantly changing.

Premiums

The premiums are the extra costs have the product, the difference between the spot price and the selling price are the premiums.

Where to buy the products?

The place where you buy the products is probably the most important aspect to consider in your investment. Be wary of sellers who offer you an excessively low price, remember that the price of the products is based on the spot Price of the metal at the time of purchase. Always choose a store that inspires confidence, because it is certified, because they have been in the sector for many years, or because they are well valued by other customers.