In today’s digital online world, we seldom own assets that we can physically see and touch that hold and increase their value despite market whims and fluctuations. Gold and silver are the only currencies that have been in use for the last 5,000 years. What (with that in mind) is the best way to buy gold and silver in today’s markets?
Assets such as gold and silver are ruled by the law of physical supply; there is only so much gold and silver available. When you buy gold or silver, you can physically see the item and weigh it yourself if you chose, so it is much easier to determine the actual value.
Where does gold and silver bullion come from? After the metal has been mined and then refined, it is generally sold to bullion banks. These banks are the middlemen between the suppliers and the buyers.
Just like a normal bank is the middleman between you and the government’s reserve bank, bullion banks are the intermediaries between the gold suppliers and the buyers.
Gold producers sell to the banks, despite what the market demands at that particular moment are, and buyers purchase from the bank. The bank stores the gold, handles financing and basically distributes the gold across the globe for investment or industrial purposes, or jewelry. The buyers in this instance are the companies or mints that sell the bars or coins.
Buying Gold or Silver Bars
Perhaps the easiest and best way to buy gold and silver is to simply purchase bars. Investors generally buy gold or silver in bars as they are less expensive (or closer to commodities exchange prices) than coins.
Gold and silver bars are purchased per ounce. You can buy them as 1-ounce bars, 10 ounces, 100 grams and 1 kg (32.15 ounces). Gold and silver prices are easy to find online, making it simpler to determine your budget. These precious metals are sold in troy ounces that is slightly (about 10%) heavier than a normal ounce.
