For many investors, the idea of investing in gold is quite appealing. For one, it’s an effective means of diversifying your portfolio. Additionally, gold is often seen as a hedge against market volatility and inflation because its value tends to move in the opposite direction compared to stocks, bonds, and other paper assets when instability hits.

When opening an IRA, you can choose to go with the conventional account, in which you’ll invest in bonds, stocks, ETFs, and other securities, or you can go with a gold IRA, also known as a self-directed IRA. With the self-directed IRA, you can invest in special assets such as precious metals, art, collectibles, and cryptocurrencies. A gold IRA specifically enables you to invest in physical precious metals, provided that they are approved by the Internal Revenue Service.

Historically, many investors have considered gold to be a safe-harbor asset, protecting their purchasing power against inflation. It tends to hold and even increase its value over time despite market fluctuations. This is perhaps why it remains a strong retirement investment option. As of March 2022, the price of gold per ounce sat at roughly $1932, a significant increase from roughly $1889 per ounce in March 2020.

With the price rising, gold is bullish, and it’s arguably one of the safest investment options for growing your nest egg.

Why You Should Diversify Your Portfolio

Portfolio diversification is one of the most important principles of investing. Diversification simply involves spreading your capital among different investments so that you don’t have to rely on a single investment for your returns. The key aim behind portfolio diversification is to minimize the risk of loss.

Some of the major benefits of diversifying your portfolio include:

Minimize the risk of loss: When you put all of your capital into a single investment, your risk exposure is substantial. If that investment does poorly over a certain period of time, you will potentially lose your asset value. On the other hand, having several investments, including gold, in your portfolio can reduce your potential losses. Even if one investment does poorly, the rest might perform better – helping protect your wealth.

Generate returns: Sometimes, investments don’t perform how we expect them to. When you diversify your portfolio, you won’t have to depend on one investment or asset to generate returns. Gold is an investment that is predicted to only continue to grow in value return, as it has over its long lifespan.

Preserve capital: If you are close to retirement, then you are past your accumulation phase. You’re probably more concerned about preserving your capital. Diversification is one of the best strategies for protecting your savings in volatile markets.

Although investing in a gold IRA is a great way to diversify your portfolio, it would be imprudent to invest all of your capital in gold and precious metals. Alternative assets are great as an addition to your traditional IRA, but not necessarily as your primary investment.

One of the key reasons why you shouldn’t put all of your money into gold or other precious metals is the unpredictability of their prices. Another major drawback with this type of investment is that it doesn’t pay any interest or dividends. The only way to secure capital gains would be to sell the asset at a profit. If you’re looking to open a gold IRA, some experts recommend investing at most 10% of your capital to minimize the risk of loss.

How Does a Gold IRA Work?

A gold IRA works much like a standard IRA account in that it allows you to invest your retirement funds based on specific tax treatment, whether it’s with pretax contributions or after-tax contributions. Gold IRAs follow the same rules as other IRAs when it comes to contribution limits, tax benefits, and withdrawal rules. However, there are additional rules and requirements for self-directed IRAs because of the complicated nature of the assets they hold.

Types of Gold IRA Accounts

Just like with conventional retirement accounts, there are several types of accounts with distinct tax benefits. The three types of gold IRAs include:

Traditional gold IRA: Traditional gold IRAs work like other traditional IRAs in terms of taxes. Your contributions and gains will not be taxed with a traditional gold IRA until you withdraw them. The contribution limits for a traditional gold IRA are $6,000 for those under 50 years old and $7,000 for those over 50 for the 2022 tax year.

Roth gold IRA: This is an after-tax savings account that works like a normal Roth IRA. The main advantage with Roth IRAs is that you won’t pay any taxes later on when taking your distributions during retirement.

SEP gold IRA: This type of gold IRA is available to self-employed individuals and business owners. It works like a pretax, traditional IRA in that your contributions won’t be taxed until you withdraw them, but you get higher contribution limits. With a SEP gold IRA, the contribution limit is 25% of your income or $61,000, whichever amount is less, for 2022.

How to Open a Gold IRA

If the idea of having gold in your retirement portfolio sounds appealing, here are three steps to follow to open a gold IRA account:

1. Find a custodian

The first step you’ll have to take when opening a gold IRA is finding the right gold IRA company. The IRS has rules against people personally storing the metals they own via a gold IRA. As such, you’ll have to look for a custodian whose specialty is gold IRAs. In most cases, your gold IRA company will also act as your custodian. Here are some of the IRA custodians Wall Street Metals has built a relationship with over the years: Strata Trust Company, Gold Star Trust Company & Equity Trust

There are several gold IRA companies to choose from, so you need to conduct a little research into each company to ensure you get the best services and benefits. The following are some of the green flags you need to look for in a gold IRA custodian:

Licensing: You need to ensure that the company you hire to handle your assets is qualified for the job. There are several IRS requirements that need to be met, and gold custodians must be licensed.

Insurance: You should also choose a company with insurance to protect your gold. A company with insurance is dedicated to keeping your assets safe in the event of theft.

Experience: You need to choose a custodian with experience handling gold and other precious metals. This way, you know they can answer any questions you have about the metals or market issues. Additionally, experienced custodians will give you expert advice and help you avoid pitfalls and mistakes that you might be prone to.

Before you open a gold IRA, make sure you take a careful look at the company’s fees, both up-front and additional charges. This way, you’ll pick a custodian that fits your budget and needs.

2. Deposit funds

After opening your gold IRA account, you’ll need to fund it just like with a normal IRA. You can choose to make cash contributions or go with a rollover. Cash contributions are pretty straightforward, as you can pay with cash, write a check, or do a wire transfer. Rollovers are for those who would like to transfer contributions from their existing retirement accounts to the gold IRA.

3. Choose your metals

Once you’ve deposited the funds, you can purchase your gold or any other precious metals. You should keep in mind that there are IRS standards the metals must meet in order to be included in a gold IRA. Some gold IRA firms will allow you to buy directly from them, whereas others require you to buy from a separate precious metals dealer.

After you’ve bought your metals, you can monitor their performance from time to time. If you prefer to get regular updates, you should ask your custodian about online dashboards where you can easily access information on your investments.

What Amount Should You Invest in a Gold IRA?

The best way to determine the amount you should invest in your gold IRA is to take time to consult with your financial advisor. This way, you get access to expert advice regarding your investment options and current market trends. Moreover, your financial advisor can help you set goals that will inform your investment choices.

You should also get in touch with a precious metals dealer who will guide you and help you determine the investment size that will best fit your portfolio. For example, many experts would recommend investing about 10% of your total portfolio in a gold IRA. According to some experts, you can go as high as a third of your retirement funds. The bottom line is that you should work with your financial advisor to make an informed investment decision.

Start Your Gold IRA With the Help of Wall Street Metals

Acquiring gold and other precious metals such as silver helps you create a diversified and well-rounded portfolio. A gold IRA can also help boost your wealth and protect you from inflation. Wall Street Metals is a top choice among gold IRA custodians as a precious metals dealer. Check out our selection of products, and discover how we can help you fund your gold IRA today!

With so much uncertainty surrounding inflation, supply chains, and the general economy, an increasing number of people are turning to precious metals as secure long-term investments. With that said, it’s important to remember that there are certain risks associated with any investment, and precious metals are no exception. Understanding the many misconceptions and intricacies of precious metals can help you avoid losing money or potentially getting taken advantage of when you make a purchase.

The precious metals market in the U.S. is currently valued at more than $182 billion, with analysts predicting continued growth into 2027 and beyond. Meanwhile, inflation rates continue to rise throughout the country in response to unprecedented economic factors. These uncertainties have fanned the flames of the global precious metals market in recent years, causing many Americans to consider investing in liquid assets such as gold or silver as a means of protecting their hard-earned wealth.

Before you leap into buying gold, silver, platinum, or palladium, it can help to start with gaining a deeper understanding of how the market functions. Here are seven beginner mistakes people frequently make when buying precious metals for the first time.

Mistake No. 1: Overlooking the Potential of a Precious Metals IRA

Many new investors tend to focus on buying coins or bullion, but it’s also a smart strategy to reap the benefits of precious metal prices without needing to store the physical metal yourself. Similar to a traditional retirement account, a self-directed precious metals IRA contains holdings of gold, silver, platinum, or palladium with at least 99.5% purity.

Contributions to a precious metals IRA go toward the acquisition of these assets from a qualified dealer, after which they are transported to a secure facility for storage. Here, your metals will remain protected under lock and key until you decide to close your account or liquidate your holdings. Although there are storage and maintenance fees associated with precious metals IRAs, this type of investment is an excellent way to get exposure to the market without taking on a tremendous amount of risk.

Opening a precious metals retirement account or a more targeted gold IRA provides attractive growth potential when compared to investing in stocks, bonds, or mutual funds. For one thing, metals like gold are finite resources, and this scarcity puts continual upward pressure on their value. This is why metals like gold and silver have successfully weathered economic downturns for hundreds of years, insulating investors from sudden currency devaluation and other unforeseen financial crises.

Mistake No. 2: Buying From Unverified Dealers

The value of any precious metal is contingent on its purity, so it’s important to buy bullion, coins, or jewelry only from a certified dealer. There are plenty of bad actors looking for inexperienced investors to scam. Before you buy, make sure you’re purchasing your gold, silver, platinum, and palladium from a verified, authorized provider who can guarantee the authenticity of their inventory.

Take the time to acquaint yourself with the difference between karat weights and how they impact a precious metal’s price. For investment purposes, it’s usually best to focus on buying only the purest possible ingots or coins. If you’re uncertain about a metal’s purity or providence, it’s probably best to move on to another dealer you know and trust. Many pawn shops and online retailers may appear to offer excellent deals on precious metals from time to time, but unless it’s a reputable source, you can never know for sure what you’re buying.

Mistake No. 3: Being Fixated on the Spot Price

Another common mistake new investors make is getting too wrapped up in the current spot price. The going rate for 1 ounce of a metal like gold or silver will fluctuate daily, but its long-term growth potential largely remains consistent. 

Instead of following price changes every day with bated breath, it’s much better to take a broader perspective when buying precious metals. Try to avoid feeling anxious about slight drops in prices over a few days or weeks and instead try to think about appreciation over many years. 

Although many investors may sell stocks the moment their value drops, this approach isn’t recommended with assets like precious metals. Remember, every sale of gold comes with a premium, and panic selling at or near your buying price can lose you a hefty sum of money. The appeal of investing in gold, silver, platinum, or palladium is that these assets tend to retain their value over time, so don’t get scared off by a small drop in the spot price shortly after buying.

Mistake No. 4: Buying Scrap Precious Metals

For beginner investors, it’s advisable to avoid buying precious metal scrap because this raw material is less valuable than coins or bars. One of the issues with scrap precious metals is that it’s difficult to sell them on the open market unless the material is broken down, refined, and processed. In addition, it can be challenging to determine the potential value of scrap metals before refinement as the purity will vary depending on where they come from.

After all the costs of purchasing the scrap, transporting it, and extracting the metal, many investors find that they’re left with a relatively modest profit margin, if any. This is why extracting precious metals from scrap is usually not cost-effective unless it’s done in bulk, involving thousands of pounds of discarded precious metal holding items.

Mistake No. 5: Not Doing Your Research

Those who are inexperienced with precious metals should take the time to study the market, identify trends, and explore all the avenues for investment. Because risk profiles and financial objectives vary from person to person, you’ll want to find an opportunity to enter the market that you’re comfortable with. This could mean buying pure bullion or simply purchasing a few pieces of jewelry to keep in a safety deposit box. If you’re more comfortable with traditional equities, you may want to consider buying shares of a gold mining stock that pays out dividends to its shareholders. 

In short, even if you expect outstanding returns, it’s usually best to avoid jumping into precious metals without doing your fair share research first. For professional advice and guidance, it may help to speak with a precious metals expert before committing to any major financial decision.

Mistake No. 6: Being in It for an Immediate Return

So long as the U.S. dollar remains relatively stable, you’re unlikely to see a sudden spike in the price of precious metals. In this way, investing in gold, silver, or other precious metals is a long game, and not a get-rich-quick investment strategy. Expecting overnight returns on your investment is not a viable attitude when it comes to this class of assets. Instead, successful investors in precious metals recognize that gold, silver, platinum, and palladium serve primarily as a highly secure store of value.

Although precious metals rarely skyrocket in price over the short term, coins, bullion, and jewelry are solid investments due to their resilience against market pressures and their ability to grow steadily over time. Resistant to inflation, precious metals are excellent at providing a buffer of protection if there is ever an economic collapse that paper currencies can’t survive. If for any reason the U.S. dollar loses its purchasing power, precious metals like gold will likely become a standard of currency for many just as they have done throughout history.

Mistake No. 7: Not Properly Diversifying Your Portfolio

Creating a healthy, diversified portfolio of investments is often one of the first things a new investor tends to overlook. Try to avoid putting all your eggs in one basket if you’re interested in entering the precious metals market. 

As a general rule, many financial advisers suggest allocating 10% of your overall investment portfolio to precious metals, with the remaining 90% going to traditional investments like stocks, mutual funds, or ETFs. Likewise, it’s essential to diversify your holdings within that 10% devoted to precious metals. In other words, consider allocating 3% to mining stocks, 3% to silver bullion, and 4% to a gold IRA. Finding the right combination will depend on your unique financial goals.

Start Investing in Precious Metals With a Trusted Partner

The current economic climate has many people asking themselves, “Should I invest in precious metals?” 

At Wall Street Metals, our answer is a clear and resounding yes. If you’d like to secure assets like gold bullion, silver, or other precious metals, you’ve come to the right place. We have a wide selection of certified products to suit your investment preferences, from beautiful sovereign coins to platinum or palladium assets. For those interested in saving for retirement, ask about opening a gold IRA and start building wealth for the future. No matter what you’re looking for, our team at Wall Street Metals has what you need. Let’s start a conversation today!

 

The coronavirus pandemic shattered the world’s workday culture and affected countless industries, but it also directly impacted the precious metals market. As the pandemic hit, the price of gold increased dramatically, followed by a plunge in the price of silver.

Since March of 2020, silver has rallied strong and sits at a healthy price evaluation. During that time, gold has remained relatively consistent in the price for the past two years. This dynamic points to the current buying power of silver, and the profitability investing opportunity to stockpile gold assets.

Why Exchange Your Silver for Gold?

In the past three years, the price of gold has risen by a whopping 43%, reaching a high of $2,067.16. With a three-year increase of $538.39 per ounce (42.46%), gold has undeniably performed much better than most other precious metals.

Meanwhile, the per-ounce price of silver has experienced a $7.40 (48.36%) increase in price over the past three years, reaching a high of $29.59 during this period. However, its current price sits at $22.69 as of December 2021.

As compared to other precious metals in the market, gold has not only performed impressively but is also expected to continue to do well in the future. It’s common for people to trade their silver assets for gold for the following reasons:

  • Long history of value holding: Paper currency and other metals have experienced significant blows in terms of valuation over the years. But gold has managed to maintain its value throughout a variety of time periods and economic trends. In fact, it has become a symbol of generational wealth in many parts of the world.
  • Inflation hedge: Gold is a remarkable anti-inflation hedge because it keeps or increases its value in the face of inflation. 
  • Deflation protection: Deflation is when the price of goods and services decreases, as does the average income. During such times, gold’s price often jumps in value.
  • “Buy and hold” investment: Gold doesn’t generate regular income, but it’s a great investment for buying and holding over time as it increases in value with more certainty and stability compared to other metals such as silver.
  • Geopolitical uncertainty: Gold does a great job of maintaining its value during times of sound financial and political conditions. But it manages to stay afloat even during times of financial and geopolitical uncertainty. It is one of the few investments that hold value in times of upheaval or complete economic downturn.

Although silver is also doing well in the face of the current economic conditions, gold remains a more reliable and predictable investment option for the years to come.

Why Turn Silver Into Gold? 

The current valuation is 78.7 ounces of silver to 1 ounce of gold. In the past five years, the highest multiple has been 123.5, whereas the lowest was 63.1. So the current valuation sits at an attractive point.

Silver is experiencing a spike in price, with a $7.40 positive change in the past year. Silver is also expected to be a highly desired precious metal in the coming years because it’s used for many technological innovations, such as 5G devices, electric cars, and solar panels.

The price of silver could potentially rise in the future, allowing ratio traders to sell it to buy gold instead. That’s because ratio trading involves selling the higher-priced metal and buying the relatively undervalued one. 

Meanwhile, the current rate of inflation coupled with the recent low in gold’s price has opened the door for investors to capitalize on gold. This boom in silver price and the slight dip in gold prices presents a ripe opportunity to transfer silver assets into gold.

It’s essential to keep in mind that gold has a better return on investment than other metals. Additionally, it’s more dependable and favorable due to its promising history of value maintenance. 

How to Play the Gold-to-Silver Ratio

The gold-silver ratio measures the number of ounces of silver needed to purchase a single ounce of gold. Investors use the change in the gold-to-silver ratio over time to estimate both metals’ relative valuation. 

For instance, if gold trades at $1,500 an ounce and silver trades at $15 an ounce, it would take 100 ounces of silver to buy 1 ounce of gold. Thus, the gold-to-silver ratio is 100-1. 

Likewise, if gold were trading at $1,000 per ounce and the price of silver were $20 per ounce, the gold-to-silver ratio would be 50-1, as you would need 50 ounces of silver to buy 1 ounce of gold. 

Right now (December 2021), the gold-to-silver ratio is 78.7-1, which means 78.7 ounces of silver will buy 1 ounce of gold. 

Although the ratio may seem to be high, those familiar with the market will project that this is a favorable ratio to try and flip silver for gold. The silver-to-gold ratio can fluctuate depending on several factors, such as financial instability and geopolitical conflict.

The ratio currently steers on the high side due to the following reasons: 

  • Economic uncertainty
  • Low-interest rates
  • Low U.S. Treasury yields
  • U.S. dollar weakness
  • Instability in the equity markets

Gold is the more sought-out investment opportunity due to its higher value and ability to withstand financial instability and inflation. Because gold is viewed as a more valuable asset in the current market, it’s advisable to invest in gold rather than silver.

One approach is to make decisions based on the ratio and trade back and forth on the two commodities. Simply put, if one metal is cheaper relative to the other, you would sell the ”overpriced” metal and buy the ”undervalued” metal. When the ratio changes after some time, you would exchange the metals accordingly.

Let’s use an example for better clarification:

  • You possess 1 ounce of gold, and the ratio goes up to 80-1. You would then sell your 1 ounce of gold for 80 ounces of silver.
  • When the ratio goes down to 40-1, you’ll sell your 80 ounces of silver to buy 2 ounces of gold.
  • In this way, you’ll continue to gather quantities of the metals by considering the ratio trends and maximizing your holdings. In this example, you’ve doubled your investment by going from 1 ounce of gold to 2 ounces just by trading the gold-to-silver ratio.

Limitations

Although the gold-to-silver ratio can help you multiply your investments, it can be a bit tricky at times. The difficulty in this regard is identifying the relative valuation of the two metals.

Suppose the ratio goes to 80-1, and you buy silver. But the ratio then continues to increase in the next three to five years, going up to 120-1 or even 150-1. Now, you’re stuck with the silver. 

If, for some reason, you have to trade back to gold in this period, it would mean a contraction in your holdings.

Alternatively, you can buy more silver and add it to your holdings, but there’s no certainty that the ratio will continue expanding in the future. Investors must be wary of this risk when using the gold-to-silver ratio as an investment strategy. 

If you monitor the prices and ratios closely, you’re likely to suspect an upcoming extreme increase in the ratio before it happens. Here are some tips for using the gold-silver ratio wisely:

  • Do not give into the hype. Instead, stick with a level-headed trading strategy.
  • Ensure that you have a clear goal in mind before jumping into an investment. Knowing what you want to achieve makes it easy to monitor the ratio and react accordingly.
  • You must be patient when using the gold-to-silver ratio for investing purposes. In fact, it takes a considerable about of time and patience before you see the results if you trade back and forth on the ratio. 

The gold-to-silver ratio is not easy to use for short-term trading activities – nor is it recommended. That’s because changes in the ratio are more gradual than abrupt. But it’s quite advantageous when you’re in it for the long term.

Where to Buy Gold and Silver

Now that you know about the gold-to-silver ratio and its mechanisms, you likely want to know how to buy gold and silver. Wall Street Metals is a reputable dealer and buyer of precious metals, where you can find gold and silver in a variety of forms.

What sets us apart from the competition is our transparent pricing and expert industry knowledge. Our dedicated team of precious metals advisors is here to assist in any gold and silver questions and investment concerns you may have. Contact us today to exchange your silver for gold, and view our wide inventory of available precious metals. 

 

No matter where you are in life, it’s never too late — or too early — to start thinking seriously about investing. The single best time to think about the future is yesterday, and it’s generally advisable for people to begin investing immediately after entering the workforce. Given time, you will likely start receiving investment advice from friends, family, or financial advisors regarding where to put your money and how to diversify your portfolio. Whether you’re considering buying stocks, cryptocurrency, or commercial property, there are innumerable investment options available to meet your overarching financial objectives.

One of the more widely discussed investment options today is precious metals, and for centuries, gold has remained among the most valuable. But to what extent is gold a viable vehicle to put your money in when compared to traditional investment options such as mutual funds or stocks? 

According to a 2020 Gallup poll, some 16% of Americans regard gold as one of the best long-term investments available. This has many people asking, “Should I invest in gold?” 

And the short answer to this question is yes, without a doubt. Regardless of your financial goals, liquid assets like gold are an excellent addition to any portfolio.

Few investments can match the longevity, security, and flexibility attached to this increasingly scarce metal. In short, gold is a smart, safe, and profitable method to grow your money. With the volatility attached to the economy, swinging inflation, and performance dips in other holdings, savvy investors are buying gold in a variety of formats. 

The Value and Upside of Gold

Few other precious metals can compare to the resilient value of gold. In just 20 years, the price of gold has increased more than sixfold from a mere $264 an ounce in January 2000 to more than $1,800 in December 2021. This value continually outperforms other precious metals such as silver, which is currently priced at $22.97 per ounce, and even platinum, which goes for $942 per ounce. 

As a finite resource, gold manages to retain its value due in large part to the fact that it’s impossible to create more of this rare natural resource. Because gold is so scarce, the metal is likely to only increase in price in the years and decades to come, making it capable of weathering virtually any economic downturn, financial collapse, or unforeseen event in the global marketplace.

Due to its resilience and consistent positive valuation, many financial advisors recommend devoting at least a small portion of an investment portfolio to assets like gold. Next to real estate, gold remains among the leading long-term investments Americans choose to include in their portfolios. One of the most attractive aspects of gold is its flexibility and versatility because it may be used in several different capacities to build wealth. For instance, some investors prefer to purchase gold coins and physical bullion, whereas others find that an authorized gold IRA is the better option for their goals and preferences.

Potentially the biggest advantage to holding gold is its consistent resistance to inflation. Paper currencies like the U.S. dollar are poorly insulated from market trends, and during times of high inflation, like today, holding cash can eat away at your valued wealth over time. Regardless of economic factors, political upheaval, or financial crises, gold will remain one of Earth’s most prized natural resources. For these reasons, among others, gold will remain a safe and lucrative investment to include in any healthy, diversified portfolio.

How Investing in Gold Can Secure Your Future

Unlike investments such as commercial property or luxury vehicles, gold is highly liquid, meaning it’s easy to exchange it for cash if the need arises. This liquidity ensures that purchasing gold presents a minimal risk to the investor and instead provides a store of value to hedge against more volatile investments. Devoting just a tiny portion of your portfolio to gold can create an insulating barrier against currency devaluation, inflation, and the many economic uncertainties facing the world today.

With gold eyeing the $2,000-per-ounce mark, investors should consider buying gold sooner than later as its price is projected to continue trending upwards in the coming decades. Some forecasts suggest gold’s price may increase substantially in just a few years, possibly reaching $3,200 by 2025. With the limited downside and almost unrestricted growth potential, many investors are scrambling to acquire this precious commodity before the barrier to entry becomes too great for the average American. 

Gold has long positioned itself as the epitome of wealth, luxury, and success. The recent momentum has only further bolstered its appeal to investors, making this precious metal one of the best assets money can buy today. Here are five ways gold can help you build a brighter future well into retirement, giving you the monetary flexibility you need to meet your unique financial objectives during your golden years. 

1. Gold IRA

Similar to a traditional individual retirement account, a gold IRA allows an investor to acquire holdings of actual gold instead of more conventional assets such as cash or stocks. Although opening a gold IRA gives you ownership of gold bullion, there are certain caveats. For instance, only certain forms of gold qualify for inclusion in a gold IRA, and the purchased bullion must be securely stored by an approved custodian. This custodian will hold your gold during the lifetime of your IRA until you decide to close your account or sell your gold on the open market.

Due to broker and storage fees, the costs of maintaining a gold IRA are usually higher than the maintenance fees for an IRA backed by regular assets. On the other hand, owning a portion of physical bullion through a gold IRA can provide your portfolio with a strong hedge against inflationary economic conditions, preserving your wealth in the process. In addition, because your gold remains safely stored in a secure facility, you’ll never have to worry about theft or asset loss.

Gold’s increasing valuation makes this precious metal a strong investment for augmenting your long-term retirement plans. With a gold IRA, you can benefit financially from gains in the bullion market without having to go through the trouble of handling the metal yourself. If the past 20 years were any indication, gold prices will likely continue to climb well into the future, making this investment option an excellent choice for those who are risk-averse.

2. Gold Coins

Another way to secure your financial future with gold is to purchase gold coins from a certified dealer. Unlike larger gold bars, coins rarely exceed 1 ounce in weight and are typically much easier to liquidate than larger denominations of bullion. Coins minted by sovereign nations are among the most valuable because it’s easier to trace their providence and trade them in for cash. Some of the most sought-after coins include the Canadian Gold Maple Leaf, the British Gold Britannia, and the Austrian Gold Philharmonic.

Many investors choose to purchase gold coins simply because they prefer to hold the asset physically instead of monitoring a gold IRA or gold stock portfolio on paper or computer. This approach to owning gold avoids the fees of custodial storage and can offer a greater sense of security for the more pragmatic investor.

The most substantial advantage to holding gold coins is that they can be sold or traded at a moment’s notice. When you make a purchase, you are paying for the premium and shipping of the coin upfront, ensuring there are no additional costs involved in the process. Meanwhile, you’ll have a precious heirloom to pass on to your family that can help you preserve wealth for generations to come.

Gold coins are an ideal long-term investment due to their consistent desirability on the open market. If or when you decide to sell your coins, you’ll find an abundance of interested buyers thanks to their affordability and value as collectibles.

3. Gold Bars

To purchase gold in its purest form in denominations of 1 ounce or more, gold bars are an excellent option. The main advantage of buying gold bars is that they often come with a lower premium. For example, each gold coin purchase comes with a premium fee attached, which can make buying several individual coins an expensive endeavor. However, many gold providers will offer discounts on the premium over the spot price when customers buy in bulk. This means that when you buy gold bars weighing 5 ounces or more, it’s possible to save a substantial sum upfront.

One of the major draws for investors in gold bars is the ability to physically hold them like with coins or jewelry. Whereas some prefer to store their gold bars in a personal safe or bank security box, others may opt to allow a third party to handle storage. 

Gold bars are ideal for those who wish to utilize a greater single source of value instead of buying multiple coins or pieces of jewelry. Gold bars are relatively easy to sell, but bear in mind that, because higher denominations are less affordable, it may be challenging to liquidate them at a moment’s notice.

4. Gold Jewelry

Gold jewelry has served as a status symbol for the most wealthy and powerful people in society for many millennia. Elegant and functional, gold jewelry is another route that can help you secure a better financial future. Gold jewelry retains its value well over time, but there are several things to consider from an investor’s point of view. For one, gold jewelry comes in many weights, ranging from 14 to 24 karats, and this purity can have a dramatic impact on its market value. Additionally, with something as specific as a piece of gold jewelry, the number of potential buyers dips, lowering potential values. You’ll need to acquire some knowledge of the jewelry trade before making a purchase from certain retailers, such as some online stores, pawnshops, or private sellers.

You’ll also want to carefully evaluate the price of the jewelry in contrast to its actual value in gold as many pieces of jewelry will cost more than the actual spot price of the gold. This means that it may take some time to realize a considerable return on your investment. With that said, there is a market for high-quality gold jewelry that can make it useful in augmenting your other retirement investments.

5. Gold Mining Stocks

If you’re more comfortable investing in regular assets, gold mining stocks may be the right option for you. Gold mining stocks can provide you with exposure to the booming gold market without all the trouble of storing the physical metal and the associated fees. Gold mining stocks operate in the same way as other equities, and several gold mining companies even pay modest dividends to their shareholders.

One of the attractive characteristics of gold mining stocks is their affordability. For instance, a single share of Eldorado Gold Corporation would cost you $9.45 as of December 2021. The VanEck Gold Miners ETF is also reasonably priced at only $31.30 per share.

A big benefit to gold mining stocks is that they are eligible for inclusion in a traditional IRA portfolio because you’re not investing in the physical metal. At the same time, you can potentially enjoy leveraged gains if the price of gold continues to take off in the future.

Invest in Gold With Wall Street Metals

Are you thinking about investing in gold to diversify your retirement portfolio? Our team at Wall Street Metals can help you reach your financial goals. We offer a wide range of quality, certified precious metals, including gold, silver, platinum, and palladium, all of which are readily available in a variety of denominations. 

Browse our wide selection of beautiful sovereign gold coins and bars, or consider speaking with us about opening a gold IRA today.

 

 

Counterfeit products are nothing new in any corner of the modern market. A large percentage of the alleged precious metals in circulation are counterfeits. This is a sad reality, especially if you use gold and silver coins as an investment, for a special collection, or as a hobby.

These fake coins are created by con artists and dishonest dealers who are found all over the market waiting to take advantage of unsuspecting buyers. A survey carried out by the Anti-Counterfeiting Task Force in June 2018 rated the Morgan silver dollar as the leading counterfeited U.S. coin.

On the other hand, the U.S. gold and silver American Eagle coins lead the list in the bullion category. Fortunately, the gold sector has put several measures in place to protect gold buyers.

The biggest question facing gold and silver buyers is how can you identify the genuine coins from the fakes?

How to Spot Fake Gold and Silver Coins

Here are the six best ways to spot fake gold and silver coins on the market.

1. The Magnet Test

The magnet test is the easiest way to identify fake coins from genuine ones. All you need is neodymium (super magnet), which is readily available in most hobby stores. Rather than buying the magnet, you can also get one by breaking open an old computer’s hard drive.

The process involves taking the gold or silver coin, inclining it at a 45-degree angle, and putting the magnet over it. The silver’s low conductivity should make the magnet slowly slide over the coin. As for a gold coin, the magnet should slide right off.

Both gold and silver are non-magnetic elements. This is a vital fact you should always keep in mind whenever you want to test the legitimacy of gold and silver. If you have supposed sterling silver that attracts a magnet, it is counterfeit. Generally speaking, if your gold or silver coin attracts a magnet, it’s not an authentic coin or piece.

However, a few metal elements are magnetic, including iron, cobalt, and nickel. Besides the ferritic metals, other magnetic metals found on the market include gadolinium, samarium, and neodymium. It is, thus, possible to encounter some metals that are similar to silver and nonmagnetic — zinc, pewter, and aluminum are perfect examples.

It might be confusing at this point if you think about pennies minted in 1943, which are magnetic despite being made from zinc. Zinc is a nonmagnetic metal, but it makes up only a tiny coating of the coins. The rest is composed of steel, a ferromagnetic metal, which explains why the coins are attracted to magnets.

2. The Ping Test

The ping test is another quick way of determining whether silver coins are real or fake. If you drop or strike a legitimate silver coin on a hard surface, it should produce a characteristically long ping sound. The millions of fake coins available on the market are characterized by a dull noise. Based on the sound you get after dropping or striking the coin, you should be able to determine its legitimizes. This test, however, doesn’t tell the levels of purity in the coin, but it is a quick way of weeding out the counterfeits. 

Silver and gold coins produce a characteristically solid sound when you drop them on wood and other hard surfaces. In contrast, the fake coins make a deeply hollow thud and a dull noise compared to authentic gold or silver.

3. Visual Inspection

There’s a slight difference in color between genuine and fake gold coins. If you’re familiar with coin appearances, you can most likely identify lettering issues in the inscriptions, which may exist in the wrong font. Plus, the fine details on the design may also appear cruder upon comparison. The tool marks are another significant clue when you’re determining the authenticity of a gold coin.

In the process of trying to hide their imperfections, fake gold coins commonly leave behind a distinctive abrasion, besides altering the mintmark. This is a great way of telling the genuine Morgan dollars apart, thanks to the rare ”CC” mintmark designed by the Carson City mint. It would help if you were cautious about suspicious marks, most of which conspicuously exist next to the key design features of the rare coin.

As mentioned above, coins that are attracted to magnets are fake in most cases. However, it is not always true that coins that don’t stick to the magnet are genuine. After doing the magnet test, you should also include other measures of determining a coin’s legitimacy 一 examining it thoroughly, for instance, while comparing it to a genuine sample is essential. You should also invest in a jeweler’s loupe or magnifying glass, which can come in handy when you’re conducting the comparison.

4. Measuring Weight

The weight plays a crucial role in discovering fake gold coins from real ones. It’s common for gold coins to have different weights despite having the same gold content. The trick in such cases is knowing the standard weight of authentic gold. The standard weight of gold is as follows:

  • 24 karat gold coins (1 ounce) 一 for example, Canadian Gold Maple Leaf coins 一 weigh 31.1 grams.
  • 22 karat gold coins 一 for instance, South African Gold Krugerrands and American Gold Eagles 一 weigh 33.93 grams.
  • There’s also the Saint-Gaudens and $20 Liberty Head gold coins, both of which weigh 33.43 grams.

That said, it would be helpful to bring a reliable portable weighing scale on the purchase day. Many metal experts recommend the American Weigh digital scale, thanks to its unmatched reliability. It is affordable, around $10 at major retail stores, and suitable for both small- and large-scale buyers. As you focus on the weight as a measure of authenticity, consider that an accurate weight doesn’t necessarily guarantee it is 100% original. 

Thanks to their standard dimensions, this tip is most suitable for government-minted bullion coins. You should visit the official mint website and familiarize yourself with the measurements before shopping. Whenever you come across an extremely thick or large gold coin, odds are it is a fake.

Most counterfeit gold coins tend to be larger and thicker, making them heavier than the original ones. Besides the weight scale, you should also bring a set of calipers to the store to measure the sizing dimensions.

5. Measuring Diameter and Thickness

As buyers become more and more cautious about fake metals on the market, con artists are also enhancing their skills at the game. Today, they pay close attention to the weight of these fake coins to ensure that they match that of the real ones.

Luckily, matching the diameter or thickness of the authentic coins remains a great challenge for these scammers. A caliper is, thus, an essential requirement whenever you go out shopping for gold coins. Tekton calipers are one of our best recommendations. You should check both the diameter and the thickness of the coins as it is almost impossible to match the weight, thickness, and diameter of real gold and silver coins.

6. The Acid Test

The acid test is the successor to the touchstone test. The touchstone test is credited for the debut of the coin-based monetary system during ancient times. Currently, the touchstone is used together with aqua regia to measure gold purity levels.

Aqua regia is a mixture of hydrochloric and nitric acid. This method involves scratching the coin on the stone. You can also fill a notch on the coin to kill any chances of accidentally rating plated products as pure. There are many acid kits available for gold and silver, but they do carry risks you should consider before following through.

Common Warning Signs of Fake Gold and Silver Coins

If you still have doubts about the product’s authenticity after the above tests, here are additional warning signs to be cognizant of before buying. Gold, for instance, is an expensive product, and you can’t risk your money when your instincts feel that something is wrong.

Despite the latest move to produce more convincing counterfeits, the market still has numerous distinctively fake coins. It would help if you look for errors in the designs, wrong inscriptional fonts, a soapy or flat appearance, and other missing fine details on the coins.

It’s easy to identify extremely flat or uneven relief as a feature of a fake coin — and it would be best to look out for impossible dates, such as the popular fake-dated 1906 American Silver Eagle, which wasn’t minted until 1986.

Other features to look out for regarding fake precious metals include non-uniform or nonexistent reeds on the edges, seams on the edges, or places where the sprue was filed off from the counterfeit cast. Thanks to federal law, every replica of an existing coin should have the word “copy” stamped on it. Older replica coins were minted with an “R” on them to indicate they were replicas. Most con artists try to hide this stamp, which should be a warning sign. Others include:

  • Dealers who rush you into buying
  • Prices that seem unreasonably low
  • Reluctance to provide photos, concrete details, and a thorough inspection of the coin
  • Lack of online ratings and reviews
  • Attempts to switch the product after you have checked it out
  • Unwillingness to meet and transact in an open place under closed-circuit TV surveillance

Ways to Avoid Being Scammed By Fake Gold & Silver Coins

The best way to stay safe from dishonest dealers is by buying from reputable and established coin dealers 一 these dealers have A+ ratings with the Better Business Bureau and are well regarded within the precious metals industry.

Another tip is to complete thorough research on the identified coin before buying it. Knowledge is power, and it significantly reduces your chances of being fooled while buying gold and silver coins.

If you’re wondering where to buy authentic gold and silver coins, view our selection here at Wall Street Metals and enjoy great deals on our trusted precious metals.

 

IRA Eligible Coins

Wall Street Metals are experts in all things gold, silver, platinum, and palladium coins. We’ve got years of experience in the precious metals industry and have the connections to get you the best deals on your coins whether you’re investing or collecting.

But with great power comes great responsibility, and we get asked a bunch of questions on a regular basis by both our new and regular clients. One of the key queries we receive here at Wall Street Metals is relating to IRAs, and which coins are eligible for an IRA purchase.

So, we thought it would be a good idea to write a blog about the subject so you’re fully in the know when it comes to IRA eligible coins.

Let’s jump in with IRA eligible coins from the Royal Canadian Mint.

The Gold Maple Leaf Coin

The 1oz Gold Maple Leaf Coin is one of the most popular coins from the Royal Canadian Mint. It’s the primary piece in the series and debuted in 1979 as the second-ever gold bullion coin in the world. It contains 1 Troy oz of .999 pure gold in BU condition and is one of the many IRA eligible coins available at Wall Street Metals.

It also comes in a range of different options, with the ½ oz Canadian Gold Maple Leaf Coin also available to not only buy online, but coming in as one of our IRA eligible coins.

And of course, you can also purchase the ¼ oz Canadian Gold Maple Leaf with Wall Street Metals, and this is also one of the many IRA eligible coins we have in stock online.

Gold Bars for Your IRA

Moving away from IRA eligible coins and we have the 1 oz Credit Suisse Gold Bar (NEW W/ Assay) available to buy online from Wall Street Metals.

Credit Suisse has a rich history in the precious metals industry and a world-famous reputation for quality. The 1 oz Credit Suisse Gold bar is true to form, and is available in brand-new condition with Wall Street Metals.

It is a brilliant, significant initial investment in gold and features the Credit Suisse logo engraved at the top of the bar alongside its weight, metal content, and purity. Not to mention the assayers mark and individual serial number which are included on the face. Each purchase of this piece also comes with an assay card to validate your gold bar.

And crucially, this particular gold bar is also eligible for your IRA.

The American Gold Eagle

Another one of our IRA eligible coins is the 1 oz American Gold Eagle Coin (Random Year, BU), which you can buy online today at our website. It’s one of the most popular and sought-after coins in America thanks to its glorious design and reputation in the industry.

It’s the largest gold coin ever produced by the US mint and is comprised of 91.67% gold and 22 karats. It does however still contain 1 troy oz of pure gold content because the coin itself actually weighs 1.0909 troy ounces in total. The 1 oz American Gold Eagle Coin features Augustus Sant-Gaudens iconic Lady Liberty image with an observe design unique to these coins.

It’s also eligible for your IRA, alongside the ½ oz American Gold Eagle Coin and the ¼ oz American Gold Eagle Coin. All three of these magnificent coins are available in brilliant uncirculated condition with Wall Street Metals, and each one of them is a fantastic addition to your investment portfolio or collection.

With them being IRA eligible coins, you can also reap the many tax benefits of buying precious metals through your IRA.

4-Coin Proof American Gold Eagle Set (Random year, Box + COA)

The American Gold Eagle coin is the official gold bullion of the United States, and one that’s been available since 1986. It’s struck annually by the US Mint, and the coins we have for sale in this series are available in bullion, proof, and burnished versions.

The 4 Coin Proof American Gold Eagle Set is sure to bring your portfolio or collection to life, and each box arrives in original US Mint box with a Certificate of Authenticity. It includes all four weights in the Proof American Gold Eagle Series, with designs featuring Lady Liberty from Augustus Saint-Gaudens and the family of bald eagles by Miley Busiek.

This is a truly unique and sought-after set and is available for you today with Wall Street Metals. It’s also part of our offerings which are fully IRA eligible, so don’t miss out on this fantastic opportunity and get yours today.

Book an IRA Appointment With Our IRA Experts

We proudly offer you, our customers, precious metals and coins for your IRA, and have partnered with New Direction IRA, Equity Trust, GoldStar Trust, Strata Trust and more to provide the lowest and quickest IRA setup and maintenance. Setup takes three simple steps, and we even have the option of speaking to an IRA advisors to help you buy your coins and reap the tax benefits.

Book your IRA appointment today with Wall Street Metals. And for more info on the coins you can purchase through your IRA or IRAs in general, visit our dedicated IRA page right now.

Download your free IRA brochure here, we also have a limited time opportunity to schedule in a call with our CEO. Avoid pitfalls and protect your wealth and future retirement. Get an inside look on how to invest in precious metals and have your questions answered.

Get in Touch With Wall Street Metals Today

If you’d more information on the IRA eligible coins we provide or any queries relating to the other precious metals on our website, or to be honest, anything at all, then do not hesitate to get in touch with the experts at Wall Street Metals.

Our reputation and buying power in the industry means that all of our coins are available as close to spot price as possible, and we even feature live spot checkers and historical data on all gold, silver, platinum, and palladium listed on our website. We also love speaking to customers.

Best of all? Wall Street Metals guarantees to beat any quote provided by a competitor at our website, yes you read that right, we guarantee to beat any written quote from a competitor.

So what are you waiting for? To get in touch, you can contact us via email at sales@wallstreetmetals.com or give us a call on 1-800-632-4154.

 

Tax Metals

Wall Street Metals are experts in the precious metals industry. We’ve got thousands of happy clients over the years to prove it, and we offer the absolute best prices on gold, silver, platinum, and palladium available online.

We even offer to beat any written quote from a competitor, so we can say that we provide the best deal with absolute confidence.

And while there are profits to be made in the world of precious metals, there are also various tax implications you need to be aware of if you’re looking to invest. With this in mind, we’ve decided to put together this guide on everything you need to know about capital gains tax on precious metals, so you understand fully what you’re getting in to.

Capital Gains Tax on Precious Metals – The Basics

If you have holdings in gold to silver, platinum, or palladium, they are considered by the IRS to be collectibles. This means they have a cap of 28% when it comes to capital gains tax, which is in place to encourage long-term investment.

Of course, this does some with some caveats and rules.

For starters, it only applies once you actually sell your pieces. Capital gains tax on precious metals won’t be assessed until this happens, meaning that if you buy gold, for example, and it increases in value while you have it in a depository, the capital gain won’t be realized because it hasn’t been sold.

This means that the most vital element of working out how much capital gains tax you might be liable for is determining your cost basis, otherwise known as the original cost of the metals in question. You use the original cost you purchased your pieces for as a basis, and work out the capital gains tax based on the profit made when you sell.

Precious Metals as Inheritances and Gifts

While the above forms the basis of understanding when it comes to capital gains tax on precious metals, there are conditions that may be applicable to your personal situation that will influence how much capital gains tax you pay.

Lots of people receive gold or silver as part of an inheritance, for example, for which there is a different method used for calculating the original cost basis and therefore capital gains tax owed.

With inheritance, instead of working out the original cost basis of your coins from the date of purchase, you use the day the person passing them on to you passed away. This forms the basis of the amount you will owe once sold, and how much capital gain has been realized in the eyes of the IRS.

When it comes to tax on precious metals you receive as a gift, you might expect the cost basis to be calculated from the day you are presented with the precious metal, however, this is not the case. Instead, the market value of the original purchase date of the metals from the gift-giver is used.

At the end of the day, it’s as simple as understanding that if your precious metals are worth more than they were originally purchased for, you’re almost certainly going to have to pay a rate of 28% tax on the profits. Unless they were inherited, then it’s calculated from the death of the person who passed them down to you.

However, this isn’t always the case…

Short-Term, Mid-Term, and Long-Term Capital Gains Tax on Precious Metals

As we’ve mentioned, to encourage long-term investments, capital gains tax is capped at 28% for long term investments. This is the case if your tax bracket is between 33% and 39.6% and in a nutshell, even if your profits put you into a higher bracket, the tax on precious metals you will pay is capped at 28%.

But remember, qualifying for long term investment status means you have to hold on to your coins for a longer period of time (more than one year) between buying and selling.

When it comes to shorter time periods, short-term capital gains on precious metals apply. These are taxed at ordinary income rates, so if you’re within the 10-25% bracket, your gold, silver, platinum, and palladium assets will be taxed at the standard rate of tax, which is 10%, 15%, or 25%, depending on the total amount earned.

Capital Gains Tax on Precious Metals if You Lose Money

Precious metals are a stable investment that see increases in price over time as a general rule. But in the (very) unlikely event that you lose money when you sell your gold, silver, platinum, or palladium, then there is no capital gains tax to be paid.

That’s because you will actually have a capital loss on your hands, rather than capital gain.

While this isn’t exactly good news because you’ve lost out on money, you could actually use your capital loss to offset capital gains in that tax year, or even tax years down the line.

You can also offset this loss against your standard income, but there are a number of limitations and limits in place for this which you’d have to discuss with a tax professional.

Invest Today with Wall Street Metals

If you’re looking to invest in gold, silver, platinum, and palladium, then there’s no better place to do so than with Wall Street Metals. We provide answers to all questions you might have surrounding the best practices and nuggets of information, and have years of experience in the industry.

In these years we have accrued a sensational amount of knowledge as well as vital connections within the industry, enabling us to provide gold, silver, platinum, and palladium to our customers as close to spot price as possible.

And like we mentioned earlier, if you provide us with a written quote from a competitor, we guarantee to beat their price.

We provide a fantastic service bespoke to your requirements and pride ourselves on the high standard of customer service we provide to you. We also offer expert IRA advice, live spot price checkers and historical data on all pieces we stock, so you can make a truly informed decision on your investment.

For more information, give us a call on 1-800-632-4154, or email sales@wallstreetmetals.com and one of our friendly team will get back to you promptly to discuss your requirements.

Best Precious Metals To Invest In 2021

In the world of investments, it can be tricky to know what’s worthy of your time and money and what isn’t. Do you go for something new and unpredictable like crypto, or something a little more tried and tested like energy, real estate, or precious metals?

Precious metals are a great investment for a few reasons, and in this blog, we’ll take a look at this reasons in detail. We’ll cover the difference between the various coins on the market, and which are the best precious metals to invest in 2021.

Let’s start with the difference between the forms of precious metals.

What’s the difference between bullion, proof, uncirculated, and circulating coins?

Coins are key to the precious metals industry. So, to fully understand precious metals, you must first understand the difference between bullion, proof, uncirculated, and circulating coins.

What Are Bullion Coins?

The term “bullion coins” covers precious metal coins that are intended solely for investment purposes. They are valued by the weight of the precious metal, which fluctuates based on its daily price, and they are not sold to the general public through the United States Mint.

Instead, these coins are sold through dealers located throughout the United States, dealers such as Wall Street Metals. Other coins are sold directly by the United States Mint for collectors to boost their collections, and to others as gifts and keepsakes.

What About Proof Coins?

Proof coins are the finest quality of coin produced by the United States Mint. The term “proof” refers to the coin’s finish and blanks are specially treated, hand-polished, and cleaned to ensure high-quality strikes on each and every piece.

The blanks are fed into presses fitted with specially polished dies and struck at least twice, and the coins are then carefully packaged to showcase and preserve their exceptional finish. Proof coins are struck at least twice, giving them a frosted, sculpted foreground for a beautiful shine that is defined and intricate with a mirror-like background. They also come with an official Certificate of Authenticity and are encased in a protective capsule.

Circulating and Uncirculated Coins

Circulating coins are produced for circulations and used in everyday life. However, those sold directly by the United States Mint are never released to the Federal Reserve Bank.

Circulating coins are generally provided by the Mint in rolls, bags, or boxes, which do not include Certificates of Authenticity as they are commonplace and used as currency.

Next up are uncirculated coins which are hand-loaded into the coining press and struck on specially burnished blanks. They have a soft, matte-like finish appearance and are made like circulating which are used every day as money, only with an additional special process to produce a brilliant finish.

Like proof coins, uncirculated coins come with an official Certificate of Authenticity.

So, with these differences covered, let’s discuss the best precious metals to invest in 2021.

Best Precious Metals To Invest – Gold

Gold is a fantastic commodity for a number of reasons, mostly because it is the most popular of the precious metals for investment purposes. It is easily recognizable and therefore easily traded, it has high value, and it is virtually unaffected by changes in the stock market.

Gold has been used for years as an investment tool as well as for collections, and is the absolute top dog in the precious metals investment industry. There are many beautifully designed gold coins that are a fantastic addition to your investment portfolio available with Wall Street Metals which you can buy safely and securely online today.

Take a look at our gold collection and take advantage of our promise to beat any written quote from a competitor.

Best Precious Metals To Invest – Silver

Silver is next up in terms of popularity and ease of trade when it comes to precious metals, which has been the case for as long as gold and silver have existed.

Another easy to identify set of coins, silver has a long reputation as second in command to gold in terms of price and popularity. It has similar benefits to gold in that it is rarely affected by the stock market and other unpredictable elements of investing in general, which makes it a brilliant investment opportunity and one of the most profitable tangible assets you can invest in today.

At Wall Street Metals, we provide a range of silver coins available to buy today. Take a look at our silver collection and buy online with confidence.

Best Precious Metals To Invest – Platinum and Palladium

And finally, platinum and palladium. These are relative newcomers in the precious metals industry and are finding their footing in terms of popularity. They are much rarer than gold and silver which means that while they aren’t as easily recognized, they have more value attached to them as a result.

They’re also absolutely stunning and are a worthwhile addition to any collection or investment portfolio on this basis alone. However, money and value is always a welcomed addition!

Platinum products are available at Wall Street Metals to buy online today, as are palladium coins.

Get in Touch and Invest in Precious Metals Today

If you’re interested in buying or investing in any precious metals today, be it gold, silver, platinum, or palladium, then don’t hesitate to get in touch with Wall Street Metals.

We’re experts in the industry and have years of experience. We’re very passionate about the coins and precious metals we provide online, and we pass our highly coveted knowledge on to our customers. Our coins are available as close to spot price as you’re likely to find them anywhere and we even feature live spot checkers and historical data on all gold, silver, platinum, and palladium listed with ourselves.

Our customer service is second to none and we love helping our customers. We even guarantee to beat any quote provided by a competitor at our website, so take a look today.

And if you have any questions relating to any of the precious metals that we have listed for sale at Wall Street Metals, please get in touch with us. To do so, you can contact us via email at sales@wallstreetmetals.com or give us a call on 1-800-632-4154.

Introduction to buying gold

Whether you are looking for a long-term investment or just want something tangible that you can sell quickly in the event of another economic crisis, investing in gold is thought by many to be a proven method for ensuring economic security.

This guide will answer the five most common questions about buying gold:

  • Why should you buy gold?
  • What type of gold should you invest in?
  • What do you do when you’re ready to buy gold?
  • How can you avoid getting scammed?
  • What outside factors influence the price of gold?

Question 1: Why should I buy gold?

Gold for investment vs. gold for insurance
There are two main reasons people buy gold: as insurance and as an investment. People who are concerned about the recent economic crisis tend to view their ownership of precious metals as an insurance investment. As long as you have physical gold or silver to sell or trade, you will never be broke, even if the economy collapses. As a nationally recognized gold expert, long-time investor and author of “Stack Silver Get Gold: How to Buy Gold and Silver Bullion Without Getting Ripped Off!” Hunter Riley III told me, one of the main things gold bullion has going for it is that it’s a tangible asset you maintain control of, no matter what happens to the global economy.

While bullion is a relatively safe way to buy gold, many investors prefer to invest in precious metals to make a large profit. Mining stocks are a popular form of investment and can be lucrative. Instead of just owning a piece of gold, stockholders own a share of the process of mining gold by investing in companies that own mines. Investing in mining stocks is riskier than buying physical gold bullions or coins, but the payoffs can be greater, including a dividend that you won’t get when you buy a piece of gold. As Don Durrett, long-time investor and author of the book How to Invest in Gold and Silver, told me during our interview, “Mining stocks are potentially the investment of a lifetime opportunity because of the cash flow.”

Most common types of gold to buy
The most common ways for investors to purchase gold are:

  • Mining stocks:A high-risk, potentially high-profit investment that I will explore in more depth later.
  • Gold bullion:Available from Wall Street Metals, bullion can be bought as coins or bars.
  • Gold jewellery:In general, jewellery is not a lucrative form of investment. Retailers add up to a 400 per cent markup on gold jewellery, making it unlikely that you will be able to recoup your investment or make money on top of it later. It is possible to find valuable gold jewellery at estate sales or antique shows that don’t have the added markup, but this is time-consuming and only works if you really know what to look for. Because of all these factors, I did not investigate the ins and outs of buying gold jewellery as an investment for this guide.

Question 2: Buying gold bullion vs. mining stocks. Which is better for me?

Gold bullion
Bullion is sold in the form of bars or coins. The two easiest types of coins to buy and sell are the Canadian Maple Leaf and the American Eagle gold coins. The 22 karats Canadian Maple Leaf sells best in countries outside of the U.S., while the 24 karats American Eagle gold coin sells best within the U.S., The U.S. mint also offers the 24 karat American Buffalo gold coin through reputable dealers like Wall Street Metals, which costs more upfront and is less popular than the American Eagle. Other common gold coins include the Australian Gold Nugget and the South African Krugerrand.

While it might seem like buying common mints of coins would yield a lower return than buying less common mints, the payoff comes when you are able to easily sell one of these more popular mints of coins when you need the cash. It is relatively easy to buy gold bullion, and once you have purchased it you don’t really need to do anything but store it.

In fact, even though he prefers investing in mining stocks, Durrett recommends that people begin investing in gold bullion before jumping into stocks: “I always tell people to buy some physical gold or silver coins – buy them and stick them in a safety deposit box and see how it feels.” If owning gold makes you feel more secure, it’s time to start thinking about investing in mining stocks.

Even though it is relatively easy to find and buy gold bullion from companies like Wall Street Metals, there are some risks to consider and research before jumping into your purchase. Here are six things to think about before you buy any type of physical gold:

  1. Storage:Where will you store your precious metals? Bank safety deposit boxes are an option, but many precious metals investors don’t trust banks. You might prefer purchasing a home safe for your gold, which will add additional overall cost to your investment.
  2. Insurance: Home insurance won’t cover the loss/theft of your gold, which also may affect where/how you store your bullion.
  3. Taxation issues: In his book How to Buy and Sell Gold and Silver Privately, Internet marketer and business coach Doyle Shuler explains many of the complexities surrounding taxation and buying gold. Some states apply sales tax for gold, and others do not. Buying from an online dealer like Wall Street Metals might be a way for you to bypass your state’s taxation law.
  4. Scams: Do not buy Gold at 20%- 40% above the spot price you will never recoup your investment, instead deal with companies like Wall Street Metals who not only guarantee to beat any price for Gold coins and Bars in the U.S. but sell at only 4 % – 6 % above spot price.
  5. Reporting: Many gold buyers are critical of the U.S. government and therefore do not want their gold purchase to be noted to the IRS. According to Shuler, simply paying cash isn’t enough to keep you off the grid. By law, precious metals dealers are required to report purchase amounts over $10,000 cash to the IRS. However, they are only reporting the amount of money that was spent per transaction, not what was bought or who bought it. Shuler recommends paying with a bank wire or check if you are purchasing more than $10,000 worth of gold in cash since banks do not report to the IRS.
  6. When to buy: You will need to follow the price of gold for some time before deciding that it is the right time to invest. You don’t want to buy at the peaks, so you will need to understand what factors affect the price of gold.

Durrett emphasizes the risks involved with investing in mining stocks saying, “You can never think that mining stocks are a non-risky investment.” He explains that anything can go wrong, like political events, geological events, flooding events, currency situations or new taxation rules. “You never know what you can get blindsided by.”

Because of the risk involved with mining stocks, Durrett recommends that new investors start small: Investors “really want to start out using money they can afford to lose until they get an understanding” of how mining stocks work and what causes their prices to rise and fall. “It takes at least one year to get a little bit of comfort level that they get an understanding of what they’re doing. There’s a lot of unknowns,” but “over time you can understand what makes a mining company strong.”

Durrett advises gold bullion buyers to buy and sell from online companies like Wall Street Metals, explaining that local retailers can’t compete with online stores and so charge customers more money.

Mining stocks
While many people prefer to have a tangible asset such as gold bullion, bars and/or jewelry, investing in mining stocks can be a more lucrative investment opportunity that will lead to greater wealth. In his book Durrett states, “if you only want to maintain your wealth, then bullion is the place to be invested.” Durrett opted to invest in mining stocks, “since my focus has been on increasing my wealth and not just protecting it.”

While it may be lucrative, investing in mining stocks isn’t for everyone. During our interview, Durrett described successful investors of mining stocks as “contrarian” and “speculative.” He further noted that a successful investor will pay attention not only to their particular mining stock(s) daily but also to gold generally and external factors such as oil prices, geological events and natural disasters that can affect the price of gold.

Question 3: I’m ready to buy gold. What do I do next?

Know when to buy gold
As with all investments, the general rule of “buy low, sell high” applies to gold, whether in coin, bullion or stock form. To know the right time to buy, you need to do some research and keep your eye on the market. If you’re going with stocks, you will want to pay attention to the market for a few months before deciding that the timing is right.

Understand how gold is priced
The price of gold is constantly fluctuating, and the current price of gold is called its spot price. This reflects the most recent average bid price according to global professional traders. Several things can influence the spot price on any given day including war, the central bank, supply and demand and the size of the average transaction. When you buy gold, you will buy at a percentage (generally five to eight per cent) above the spot price, and you will sell for below the spot price. Some dealers maintain that gold coins are worth more than just the metal contained inside of them, which is how they can justify charging a premium of 20% – 40% when you buy. There’s really no getting around this, so be cautious of any dealer who claims they aren’t charging a premium.

Find the right gold dealer
Take some time to research reputable gold dealers to find a good price on gold coins. In general, avoid buying gold online through bidding sites as you can end up in a bidding war and end up paying more for a gold coin than it is even worth. Here are five things to consider when you’re looking for a gold dealer:

  1. Price: Shop around dealer websites to make sure you are paying a fair price for gold. Check exchange sites to find out what the spot price is for gold. You should expect to pay a five to eight percent premium above the spot price for a gold coin.
  2. Dealer buyback policies: Before buying from a gold dealer, investigate their buyback policies. Some dealers will charge a premium for you to sell back your gold, while others will not add any additional charge. Get the buyback policy in writing, and keep it in a safe place for the future.
  3. Reputation: Buying anything online poses risks, so be sure to do some thorough research before deciding on a dealer. The U.S. Mint’s listing of gold dealers is a good place to start. While these dealers are not affiliated with the U.S. Mint, the Mint has done some checking to make sure the dealers they advertise are represented by the Better Business Bureau. Reading consumer reviews is one of the best ways to tell if you are working with a reputable dealer or a scam artist.
  4. Red flags: While buying gold is generally a sound investment strategy, there are some red flags to consider when you’re shopping around for a dealer. Dealers that offer free storage or delayed delivery might not be legitimate, and you may never end up seeing the gold that you paid for. Store your gold in your own safe or safety deposit box to reduce your likelihood of getting taken advantage of.
  5. Key sellers to stay away from. There are certain places and people to always avoid when buying gold including Craigslist, online dealers offering massive discounts, pawnshops, TV ads, cold callers and any dealer without a brick and mortar location since there is no way of verifying that the dealer actually exists. Don’t give in to the pressure of late night telemarketers insisting you call them immediately for a limited time discounted rate on gold. Take your time to find a reputable dealer.

Question 4: What common mistakes can I avoid when buying gold?

Buying proof coins
Avoid buying proof coins if you are using gold as an investment. Proof coins are commemorative coins that usually come in a special case and are finely polished to look more attractive than normal coins. While these coins have a higher value for collectors, their monetary value is not guaranteed to stick around in the long-term, making them a poor choice for investors.

Buying fractional coins
Coins are available in a variety of fractions including a half-ounce, quarter-ounce, even a twentieth-ounce. You are better off buying a full ounce because the fractional amounts are charged at a higher premium.

Investing in exploration mining stocks
Durrett emphasizes that investing in exploration mining stocks is “Very very risky because it’s so difficult to find a mine. Only one in about 500 deposits that they drill actually become a mine.” And while the odds might seem to be in favor of a big payout if the exploration company actually finds a mine, “shareholders who invest in successful exploration mines don’t end up making that much.” Instead, the exploration company will sell it to somebody else. A company can find a billion-dollar mine, but they won’t necessarily sell it for that amount. Whatever they sell it for has to be split among all the shareholders. Because of the risk involved for minimal gain, it is best to avoid exploration mining stocks, especially when you are first starting out.

Question 5: What outside factors can influence the price of my gold investment?

Oil prices
According to Durrett, companies focused in Mexico and South America have low price structures but high energy costs, which can affect the bottom line.

Season
James Fraser and Kevin Pederson, authors of the book “The Mining Stocks Investor Guide” (Miningstocksguide.com), recommend that investors stick to “the old saying ‘sell in May and go away’ as the summer months set in and prices tend to flatline.” By September, volumes pick up and continue to rise to go into October and November. December can vary and depends heavily on the gains investors have earned throughout the year.

Country of origin
According to Fraser and Pederson, “First, you want to determine which region of the world the project is in and avoid regions of the world where there is political and social unrest, dubious law enforcement, confiscatory royalty mindsets, nationalization ‘rumors’ and high taxation.”

Management
Fraser and Pederson advise investors to “Always remember the number one goal of any management team should be to maximize shareholder value.” In addition, Durrett advises investors to pay attention to the websites of management companies and to consider it a red flag if a management company doesn’t send out newsletters and update their website with market trends and news.

Bottom line

Durrett anticipates the price of gold to rise to $2500/ounce by the end of this decade, meaning now is a great time to buy gold. Whether you are buying gold as an insurance policy or as an investment, make sure to do your research and take your time learning the ropes of buying and selling gold.

For further info please contact Wall Street Metals at 1-800 632 4154 or email them at sales@wallstreetmetals.com

Misconception #1 – “Gold has a poor return”

Critics argue that gold doesn’t pay dividends and point out that you won’t get rich from buying gold, but this argument misses the point. Buying gold isn’t a get-rich-quick scheme, but a vehicle for wealth preservation. That said, let’s look at historical performance. Since 2002, gold has increased in value of roughly 300%, a period during which the Dow increased by less than 200%. Stocks and bonds have a comparative edge over a 30 year period, but gold still increased more than 170% over that time. And since gold ownership became legal in 1975, the yellow metal has increased more than 500%! Gold may be better suited for wealth preservation than wealth generation, but would you consider those poor returns?

Misconception #2 – “Now isn’t a good time to buy gold”

As we discussed, the primary purpose of gold ownership is to protect your money, not to try and “time” its purchase with the expectation of a huge return. Buying gold isn’t like betting on the next Google stock. Instead, it’s a time-tested way to preserve your money’s value, diversify your holdings, and help safeguard your savings.

Misconception #3 – “Storing gold is complicated and costly”

Storing gold is no different than storing anything else of value – you want to strike a balance between accessibility and safety. Some of the most straightforward options are to keep your gold in a fire-proof safe at home or rent a safety deposit box at a bank. For those concerned about space, consider that even tens of thousands of dollars in gold can fit in the palm of your hand.

Misconception #4 – “Gold won’t hold its value because new gold is mined every year” & Misconception #5 – “There isn’t enough gold to support global commerce”

Let’s talk about these two together, because they’re opposites and yet both are commonly held misconceptions. Is there too much gold, or not enough gold? Neither tells the full story.

First of all, gold is scarce, very scarce, and recent trends suggest that isn’t changing anytime soon. In November 2017, Fortune reported on a revelation made by Pierre Lassonde, co-founder and chairman of mining royalty company Franco-Nevada. Lassonde told a German newspaper he was unsure how the world would be able to keep up the pace of discovery of gold deposits, and warned that a gold supply-demand imbalance could lead to a worldwide price increase. Also in 2017, China, the world’s largest gold producer, suffered a record drop in gold production, while output plateaued elsewhere.

On the other hand, some argue that there isn’t enough gold in the world for it to be used as a viable alternative to government-backed currency, limiting its utility. However, among experts, there are highly vocal detractors of this theory. One of the most influential is N.Y. Times Bestselling Author Jim Rickards. For his piece in Business Insider, titled “Gold Is The Only Option For When Paper Currencies Die,” Rickards calls that argument “complete nonsense,” and defends that the scarcity issue is addressed simply by pricing gold at a figure which reflects that scarcity (a figure which Rickards argues is $10,000/oz).

Misconception #6 – “There’s nothing more reliable than the U.S. dollar”

If only this were true, but let’s look at the facts.

According to the ICE index, which measures the dollar against a basket of six other currencies, in 2017 the dollar’s value fell 10%. That was its worst year in more than a decade, and—despite a partial recovery in recent months—plenty of economists are still sceptical. According to Quartz, “UBS and Lombard Odier expect the euro to keep gaining against the dollar, while strategists at French Bank Société Générale see the dollar falling another 10%.”

The other challenge that the dollar faces is the rising cost of living. According to USA Today, the price of food and groceries is outpacing the inflation rate. Ground beef, for instance, costs 52% more while prescription drugs cost 43% more than 10 years ago. With the prices of necessities skyrocketing, the dollar’s loss of purchasing power can pose serious financial strain.

Misconception #7 – “All this talk of volatility is an overreaction”

It’s easy to get lulled into a false sense of security: Despite tremendous unrest, recent geopolitical tensions haven’t boiled over. No bull market lasts forever, but the current one has already exceeded a record-breaking 3,459 days. And banks have, so far, fared ok against cyberattacks, even as those same banks quietly plan for a “Doomsday” scenario, as reported by the Wall Street Journal (paywall). But what if even one of those scenarios takes a turn for the worse? Consider how gold might fare then. As a physical asset, not a digital one, it can’t be erased by a keystroke. As an internationally recognized asset, its value isn’t tied to the fate of anyone government. So ask yourself: would you rather be a wishful-thinker, or be prepared?

Don’t miss an opportunity because of misinformation. Take control of your future finances by learning the facts and considering what role gold should play in your portfolio. For more information and valuable insights, please call 1-800-632-4154FF or email your questions to sales@wallstreetmetals.com.