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Saturday, June 18, 2011

simple steps to invest in gold and silver

simple steps to invest in gold and silver ; In my 6 years of investing in gold and silver, I have been asked this question many times: "How do I invest in gold and silver?", to which, I reply: "Why you invest is more important than How you invest. 'How to' is the easy part. 'Why' requires some research and learning.". But, since this article is about 'How to' invest in gold and silver, I won't make a lecture about the 'Why', but I would be robbing you of your understanding if I didn't at least cover the topic briefly. Also, the next question I usually get is "Should I get bullion or stocks?" To which, I answer: "Both, but get bullion first." And this article is about investing in Gold and Silver Bullion.

Here are my 3 BIG 'Why's.

Gold and Silver as an inflation hedge: I believe Gold and Silver are the ultimate inflation hedge. History and markets have proven that the more inflation grows, the higher the prices rise. And gold and silver always beat inflation by a wide margin. In an inflationary environment - in which I strongly believe we are in - these metals are Kings. The supply and demand fundamentals of gold and silver remain firmly intact to serve as inflation hedge against a devalued currency such as the US dollar.

Gold and Silver as investments: Since I believe we are in an inflationary environment, Gold and Silver are my preferred investment choices. I have been proven right, and I have already made handsome gains in my investments, and I have no reason to believe that I will suddenly be proven wrong any time soon. The bull market for precious metals are just getting started, since we are only in the first quarter of a commodity super-cycle that may last upwards of 40 years, and this cycle started in 1999. More on this later. Since 2001, Gold has risen from it's 21st century lows of $250 to our current $1530+ in 2011, a rise of 612% over 10 years or an average of 61.2% annually. Now, try to beat that in the stock market!

Gold and Silver as a protection against social chaos and mayhem: History has proven many times that when inflation is very high or extremely high, social chaos and mayhem usually follows right behind. I am hoping I would not have to use bullion for this reason, but I will be ready like a boy-scout when this happens. It's better to be prepared and not have to use it, than to be unprepared and wish I had bullion when things go bad. In 1980 when OPEC created a politically driven oil embargo, the price of oil and gold and silver skyrocketed, and long lines of cars are seen at every gas station. Those who had silver coins were given priority in certain gas stations, and a 10 cent silver coin (pre-1965 dime) would buy a gallon of gas. Today, that still holds true - since the market value of a pre-1965 dime (which contains 90% silver) is worth about $5, and gasoline is just around $4 per gallon.

Now, to the How To's of Gold and Silver Investing: The 5 Simple and Safe steps to investing in Gold and Silver Bullion.

Step 1. Take time to learn about Gold and Silver. Do not skip this step!! This will allow you to understand the markets and give you the advantage of knowledge that could save you from financial loss and also take advantage of opportunities that could reward you with substantial gains. My recommendation is to read the book "Rich Dad's Guide to Investing in Gold and Silver" by Michael Maloney. This is a great book that covers extensive background on money and precious metals and great recommendations that I personally follow. You can buy the book, or borrow it from the library or a friend who has it.

Step 2. Make a Plan to Invest. First, what is your goal? Next, what is your plan to achieve that goal? For example, a plan would be to buy 1000 ozt (troy ounces) of silver over 2 years. Your plan to achieve the goal could be to buy 500 ozt of silver each year, or roughly 42 ozt of silver every month for 24 months. This will give you a clear idea of what is necessary to achieve your financial goal. If you are unsure how to do this, you can get a mentor or hire a coach such as myself.

Step 3. Create an Exit Strategy. No investment plan is complete without an Exit Strategy. An Exit Strategy is necessary to complete your financial goal. Find out how you can sell your gold and silver BEFORE you buy it. This is counter-intuitive to most people. My philosophy is to begin with a clear end (goal) in mind. This includes where and when to sell it, as well as minimizing cost and legal issues and tax issues in mind. You can currently sell your gold and silver bullion back to the same place I bought it from, or on eBay. Other options are to sell it to a knowledgeable person who understands the value of gold and silver. Following Step 1 will allow you to know what kind of bullion will give you the tax advantages.

Step 4. Find a Reputable Dealer. Now, this is what most people want to know when they ask me. After "How do I invest in gold and silver?" comes "where do I buy gold and silver?". Actually, this is the easy part for me, but not without some research. My personal choice of a reputable dealer is APMEX (American Precious Metals Exchange), an online precious metals dealer that has an A+ rating from Better Business Bureau, and I have never lost an order from them. Other choices are: Bullion Direct (bulliondirect.com), an online precious metals dealer, and Kitco (kitco.com), also an online precious metals dealer, and GoldSilver.com, an online precious metals dealer owned by Michael Maloney, the author of "Rich Dad's Guide to Investing in Gold and Silver". GoldSilver.com and Kitco provides different private storage services.

Step 5. Execute the Plan. Now, this is the exciting part, and this is where the rubber hits the road. Nothing is as exciting as actually ordering your very first order of bullion and coins. Actually, that's not true. It is as exciting to open up your first package of your order. When you hold that very first gold or silver coin or bar, it will change your life forever, for there is something very psychologically fulfilling about holding physical bullion in your hands that you bought with your hard-earned money. Source ; http://www.commodityonline.com/news/Five-safe-and-simple-steps-to-invest-in-gold-and-silver-40050-2-1.html

IMPORTANT: Remember to start small so that the cost of any mistake you make will be small. For the latest updates PRESS CTR + D or visit Stock Market news Today

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