tirsdag 9. mai 2017

Gold and Silver for the Intelligent

They all make it sound so simple. Invest in physical gold and silver! Secure your savings, your future and if you are lucky… your soul.

If you wish to make a small profit, buying and selling physical silver and gold, ask yourself the following questions:
How much do I have to pay for the metals?
How much do I get if I sell it back at once?

   If you ask for the buyback price you can on the spot calculate the premium. Don’t be surprised if the buy/sell provisions turn out to be 12– 17 %. In other words, the value of the gold you have bought has to increase 12 – 17 % before you break even when selling it. This again means that the value of gold at the spot market has to increase even more if you want to make a profit.
   You have persuaded yourself to invest some of your hard earned paper money in small pieces of metal. Ask yourself:
What shall I buy?
How much shall I buy?
What kind of weight unit shall I buy?

Yes please, both!
You are going to invest in both silver and gold and you see at once that there are pros and cons for both metals. In Norway, you buy investment coins because there are no value added tax on coins, but 25 % value added tax on bars. This in spite of Customs' insistence that coins are a commodity and liable to value added tax if you import bullion coins to Norway.

Question two is relativistic
Your personality, your intentions and your wealth will help you decide. Silver is 66/68 times less expensive than gold. This means you can buy 2.2 kilo pure silver for the price of 31,103 grams pure gold. In other words, you get one ounce silver coins for the price of 167 NOK, or 19 US dollars and one gold coin for 11200 NOK or 295 US dollars. (09052017)
However, before you buy, you should ask yourself a couple of more important questions:
What kind of silver- and gold coins should I buy?
Where can I sell the silver and gold?

I recommend the 1 ounce Canadian Leaf silver- and gold coins. They have 999,9/1000 parts precious metal. They are sold by the millions, they are beautifully minted and cost less than most other investment coins. American Eagle silver dollars cost more, but they are also worth considering. Canadian Mint
The second question is very important to consider if you are going to buy silver and gold with the intention of selling with a profit. Some gold dealers are not willing to buy the investment coins back from you. Moreover, be aware that the coin aspect is gone. You sell the metal! Research your local dealers before you buy.

More is less
Both silver- and gold coins are minted in several different weight units. I recommend that you buy the 1 ounce coins = 31,103 grams. These are the best bang for the buck a gram. They are beautiful, easy to handle and acknowledged all over the world.
   However, if you find a 1 oz. gold coin too expensive, buy some Silver Canadian Leaf coins as a worthy substitute. The price of silver is low… So low that many feel that the price is manipulated artificially low. Deutsche Bank Silver Price Rigging

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