Investing in gold and silver Bullion – The ultimate guide to bullion investments

Investing in gold and silver can be straightforward, profitable, and enjoyable. As a physical store of wealth, gold and silver are easily accessible to anyone. Silver and gold are beautiful and solid investments over the long run because they hold their value across situations.

It can be intimidating at first to invest in physical gold or silver. Investing in gold or silver is always sensible to keep your investment portfolio diversified. An investment portfolio is incomplete without bullion investments. We at the Bullion Store aim to provide you with a simple guide to start your investments in gold and silver bullion.

History of gold

Gold is one of the first known metals to humans. It was found in the form of nuggets and their natural state across streams around the world. Ever since, it has been part of human lives and culture across the globe. 

As it was attractive and the easiest metal to work with, used for ornaments and idols for ages. 

Beauty, authority, and gold were always a great trio. From ancient times, gold has been associated with gods and rulers. Even in the Bible, we see a story of “the golden calf” which was created using molten gold. 

Gold always had value amongst the human and it still has. The value of gold is still accepted across the globe and it will always hold its position as a measurable commodity. It is and will be used as a monetary standard in the world economy.

What is gold bullion?

Bullion is traded in a bullion market. The bullion market is where the trading of gold and silver happens. London Bullion Market is considered to be the primary market and it allows trading 24 hours a day and facilitates futures and options trading.

Before the formation of the modern bank, gold coins were used as legal tenders. Even before that people used to exchange gold and silver within barter trading. 

Gold bars and nuggets were easier to trade than these items. The market for gold bars was not established until the development of gold bars by famous refiners.

The gold bullion bars available today range from one gram to one kilogram, and from one ounce to one hundred troy ounces. In the retail investment market, gold “Kilo bars” are typically the largest size.

Gold bars of 400 troy ounces are standard in the institutional gold market. Contracts for gold on the COMEX futures market may call for 100 oz gold bars, kilobars, or 400 oz bars.

Buying gold bullion 

Gold bullion is almost always purchased for investment purposes. A bar of bullion is a unit of weight that represents a large quantity of precious metal in bulk. It may be a coin, a coin bar, a coin collection, or something else. Among the safest, most tangible, and most valuable assets in the world, gold is universally respected. Troy ounces are commonly used to measure the weight of bullion. 

Is gold bullion a good investment? 

Investing in Gold has proven to be increasing exponentially in value in past 10 years. Since each country holds their gold reserve, price fluctuations in gold can be attributed to the economy, market conditions, or others.

While gold is often regarded as an investment, it is more deserving of being described as a store of value and a hedge against inflation rather than an investment precisely in the word’s sense. Even though gold’s price may go up and down, its value is more stable than the economy.

Why buy silver?

In uncertain times, silver is regarded as an investment that offers safety and protects against inflation and stock market declines. Besides its use as an industrial metal, silver’s price performance and outlook are affected by its industrial use. In addition to being cheaper than gold, silver is thinly traded, making it illiquid and volatile. 

Are silver investments a good choice?

Silver investing requires due diligence and understanding one’s risk tolerance, as with any other investment.

Unlike stocks and bonds, silver prices can fluctuate considerably more. Overall, silver and commodities can easily be added to a portfolio to diversify assets away from equities and bonds, and 5% of the overall assets in the portfolio should be allocated to commodities.

The best way to reap the benefits of dollar-cost averaging is to purchase silver regularly, which allows investors to own physical metals. Silver’s sometimes volatile moves can be moderated by buying a set amount every month.

Which is better for investment gold or silver?

The average precious metals investor should consider investing in gold over silver because it has more attractive characteristics. Gold has much lower volatility than silver, as well. In the meantime, silver tends to be more speculative and is more closely tied to economic activity.

Investors today can get exposure to silver more easily than ever before. Your investment broker can now assist you in buying silver exchange-traded funds (ETFs) instead of silver physically.

It is impossible to say for certain whether precious metals are experiencing another bull market. Consider its less well-known cousin instead if you believe we are right.

Gold vs. silver – physical objects

In response to inflation crises and other worst-case scenarios, many people recommend investing in gold.

         •In the end, it is the price of gold that most investors are concerned about. An ounce of gold worth $680,000 weighs 400 ounces and costs $1,700 (at $1,700 per ounce). This kind of cash isn’t readily available for most investors. It’s more affordable to buy one-ounce coins, but they cost $1,700 each, which isn’t appealing to everyone.

           •Additionally, the issue of storage arises. Having a few thousand dollars worth of gold lying around the house may make it hard to sleep. Investors can store their gold in a professional facility, but this incurs more costs and poses a risk in case something happens to the company.

Thousands of years ago, silver was a key piece of trade because it had the same quality that makes it so valuable today. The price is a fraction of that of gold, and it’s just as trustworthy. Twenty-six cents is the worth of a silver coin of the same weight and size as one ounce of gold. As a result, everyday investors can afford it.

Benefits of investing in gold 

An affordable price – At present, gold is at its lowest price in more than 2.5 years. Investors are essentially getting twice as much gold for their money in 3 years, therefore presenting an excellent opportunity for buying from the Bullion Store

Tax advantages – Taxes on growth are not imposed on certain physical gold types.

Capital growth and returns – Despite a decline in the FTSE since 1999 and a 2.3% increase in the housing market, gold has remained the best performing asset of the 21st century. 

Benefits of investment in silver 

•Privacy investing – Silver is not required to be registered, unlike share or banking. Physical silver investment is still the best form of private investment available today. 

•Capital growth and returns – The price of silver has increased by 3000% since 1999, as compared to a rise of 173% for the FTSE and a gain of 231% for the housing market.