With the stock markets at near record highs, it is now time to look to invest into gold and silver more than ever before. If you invest now in the stock market, you will more than likely lose the money you put into the markets in the long term (when you retire). It is always best to invest in the stock market when it has bottomed or at least below average earnings. Gold and silver are relatively low right now and best investment for long term growth. Plus, it helps to diversify your portfolio.
OK, now we see a prime time to invest in gold and silver and watch our nest egg of previous investments of the stock market grow. But it is better to invest in physical gold and silver or paper notes on these precious metals? Banks will tell you that paper notes on gold and silver are safe … and they probably are right. But if you had the option of real gold or silver, definitely own the real gold. You necessarily don’t have to keep it in your home under your pillow, there are companies that will keep the gold and silver that you own in safe storage facilities.
The other reason to own physical gold (versus a piece of paper that says you own gold) is that you can sell your gold when the price increases … let’s say 20%. It doesn’t take much math to know how much you bought your gold and to know the current price … and figure the rest. So right now gold is floating at $1,200 – $1,300 per ounce. When gold gets back to $1,600 per ounce, you have the option to sell and reinvest your earnings maybe into the stock market if the market is back to lower levels. If you are a gambler and have time, you can wait it out until gold gets back to $1,800 an ounce or even higher. I know all major political players own gold and will do what they can to keep legislation on a strong gold price. They will not just sit by and watch their own investments in these precious metals slide … and they have millions of their own money invested in gold.
Ok, well you might be like me and gold is just too rich for your blood. Silver is you answer. If you are new into precious metals, silver might be the better first step at learning how to manage your precious metals portfolio with much less risk. However if you have the capital, I’ve seen many new players come in and start with gold and really make smart long term investments with a solid return when they want to exit. Silver has been floating around $16-$17 per ounce for most of 2017. I have always bought silver whenever under $20 an ounce. If silver ever slipped past $10 an ounce, I would drain my savings and buy as much silver as possible (and live off of ramen and potatoes if needed). If I needed some cash, I would sell off my silver when back up to $20 an ounce but I would really wait for silver to hit back up to $30 and ounce. For the home run hitters, yes silver has hit $50 an ounce and yes I’ve seen the reports of $100 or $200 per ounce silver. My thought is that if silver really gets to $200 an ounce, then that means there is major issues with the dollar and also the markets. But if you do feel this downward spiral really coming, by all means buy silver (especially when under $20 an ounce). If nothing bad really happens (i.e. the economic apocalypse), you can still make a large profit … if you buy smart as silver can easily get back above $25-$30 an ounce rather quickly.
Gold and silver are commodities. Demand is honestly increasing every year with no peak in sight. Every year purchases of gold and silver exceed the previous record, which in most cases is the previous year. Most are fearing that printed money with no gold or silver backing just will not last forever. My thought is to keep it simple. Right now stock markets are very strong and have nowhere to go but down …. eventually. So instead of adding money to the markets that you know you probably will not recover (when you retire) hedge your bets on precious metals: gold if you can but at the very least silver. It is not ramen and potato eating time but still a very solid investment that you can use when you retire in the next 10-20 years.