Is buying physical gold and silver a good idea?

Investors should avoid taking physical possession of their gold or silver unless they believe there is an emergency. It's much safer to store your ingots in a secure vault. It's also much easier to sell metals that are stored in a secure vault because the chain of custody doesn't break. However, investing in gold and other precious metals, and particularly in physical precious metals, involves risks, including the risk of loss.

To ensure you make the best decision for your investment, it is important to compare Gold IRA companies before making a purchase. While gold is often considered a safe investment, gold and other metals are not immune to price drops. Learn about the risks associated with marketing these types of products. While silver can be volatile, the precious metal is also considered a safe asset, similar to gold, its sister metal. Safe assets can protect investors in times of uncertainty and, as tensions rise, they could be a good option for those seeking to preserve their wealth during difficult times.

The dollar has not been able to turn into gold since President Richard Nixon ended that practice in 1971. Before that, people bought gold bars as a way to diversify their investment portfolio and give them protection against inflation. And some people still do, but instead of burying gold ingots in their backyard, they buy stocks or mutual funds that invest in gold. He confirmed that many investors turned to gold traders to invest part of their savings in gold and silver ingots and coins. As can be seen in the diagram above, there is 46% of physical gold in jewelry, 17% of gold is stored by central banks, and almost a quarter of all gold reserves are still underground.

There is no centralized list of gold traders approved by regulators, but, like other companies, you can find some gold traders accredited by the Better Business Bureau. This means that there is enough paper gold in the form of an ETF or XAU, while there are limited quantities of physical gold that investors can buy. If you think about the global obsession with gold, it's easy to get carried away by adventure and mystery, such as searching for gold during the gold rush, pirate ships and treasure maps. If conservative investors want to buy physical metals — a very wise solution, in my opinion — the key safety measure they can take is to ensure that they can distinguish between real gold and fake gold.

While some states have passed laws making gold and silver legal tender, you still can't buy food or a new car with gold coins or silver ingots.