If you have been alive in the past few years it is no secret that disasters can happen within the blink of an eye. Whether it be a natural storm or military invasion, the need to be prepared for anything is evident all around us. While your typical disaster preparation might consist of securing shelter and enough food to last you an undisclosed amount of time, the need for precious metals such as gold and silver might not be so obvious.
In fact, you would be hard-pressed to find a person who is equipped to survive disaster who would consider precious metals a necessity to purchase. The fact of the matter is that gold and silver have been valuable for thousands and thousands of years, whereas your paper money has not. If a disaster were to ever happen, the value of your paper money would go right out the window because, at the end of the day, it is just paper. Gold and silver are two great resources for securing and storing your own wealth, especially in the face of a disaster. The simple fact that the scarcer something is, the more value it has, should be ringing through your head. Once disaster strikes, don’t be caught without precious metals as they will likely be incredibly beneficial for you. To fully understand the need to own precious metals, you must first understand the basics about buying gold and silver. These will be discussed in the following few sections
Coins vs. Bars
The most basic difference in precious metals is the difference between gold and silver bars and coins. While you may be aware that both exist, they are incredibly different entities, even if the weight and purity levels are the same. Precious metals coins are used as currency in countries and are only able to be produced domestically in the country where they are valued as legal tender. Bars, however, are not legal tender and are produced by a variety of privately owned mints from all over the world.
Since coins are produced only by the government of a single nation, they are much rarer and harder to find than bars that can be produced just as easily in Asia as they can in Europe, and so on. The price and value of a coin, while it is determined by the amount of gold or silver in it, is also decided by just how scarce the coin is. Bars are produced in abundance and while they do come from different companies, a 1 ounce gold bar is a 1 ounce gold bar regardless of who produced it. For your disaster preparation needs I would suggest that you invest in gold bars as they can be found, resold, and bought for less money than most coins. Bars, like coins, come in all shapes and sizes so it is vital that you only make a purchase that you can afford.
Timing Your Buys
Like stocks on the stock market, the spot value of gold and silver is always changing. Sometimes the value goes up and sometimes it goes down, that is just the nature of the beast. Your challenge, however, is to purchase your lot of gold or silver when the spot value of the metal has taken a momentary dip. If you buy precious metals when their values are too high, you run the risk of losing money shortly after your purchase.
While gold and silver may move up and down in the short-run, these metals have almost always been on the rise in the long-run, which is why they are viewed as such safe investments. By making a purchase when the price of gold or silver is down relative to its recent numbers, you are not only making the most of your money but also giving your investment the opportunity to grow in value.
Where to Buy
Now that you know what to buy and when to buy it, the next thing we must look at is where you can purchase gold and silver bars and coins. The most classic, old-fashioned way of purchasing precious metals is to seek out your local coin shop and make a purchase from them. This is a fine way of going about things so long as you are in an area where coin shops are. Some people are not so lucky and would have to end up travelling quite a distance to the closest coin shop in order to make a purchase, and that’s assuming that they even have the item you are looking for in stock.
With the advance of the Internet and e-commerce, buying gold and silver online is quickly being the most attractive way to purchase. Not only do you not have to leave your house in order to buy the metal, it is then delivered to your door at your convenience. If you have no idea where you can go about buying gold or silver online, that is OK, because wheretobuysilver.com is an all-inclusive resource which shows you only the best online dealers. It is hard to know who to trust on the Internet, but wheretobuysilver.com makes it just a little bit easier.
Guest Article By: Michael Wilaski