How To Buy Gold and Silver: Everything You Need To Know with Adam Taggart

what's the best way to buy gold and silver we're getting asked this question a lot lately especially as more and more people look to protect their wealth against the accelerating currency debasement that the trillions in recent stimulus is creating so if you're looking for a crash course into how to buy precious metals where to buy them and how much to buy then strap in hi folks i'm adam taggart founder of wealththeon i get asked all the time what's the best way to buy gold and silver turns out most people aren't aware of the full spectrum of options available and in which situations each option makes sense to consider so to correct that i'm going to provide a concise breakdown on how to build exposure to the precious metals all the way from physical coins and bars to mining stocks and to save you from taking notes i've summarized everything i'll talk about here in a free report that you can download it's available at wealthyon.com how to buy and i'll remind you that url at the end of this video so if you've been thinking about converting some of your paper fiat currency into precious metals but have been unsure how to proceed then this explainer video is for you but before continuing further let me make something absolutely clear this is not personal financial advice this material is for educational purposes only as an aid for you to discuss these options more intelligently with your professional financial advisor before taking any action let's begin with option one this is for those folks just getting started for them we recommend purchasing bullion and i mean actual physical gold and silver that you store locally now the primary reason for buying precious metals is armageddon insurance to own a form of money that will still have purchasing power should our paper-based currency suddenly become valueless and don't think that can happen in modern society well just talk to somebody in venezuela or argentina today they'd gladly trade you millions of bolivars or thousands of pesos for a single gold coin this is why many believe it's wise to have a stash or a stack in precious metals pilots of gold and silver in physical form that you can quickly get a hold of in your hot little hands should a currency crisis arise a physical gold and silver is referred to as bullion and its most common form factors are coins and bars now when buying gold bullion for your emergency stack most experts recommend restricting your purchases to one ounce sovereign coins these are coins currently minted each year by select governments around the world most notably the eagle and the buffalo in the u.s the maple leaf in canada the krugerrand and south africa the philharmonic in austria the panda in china the kangaroo in australia and the sovereign which is from the united kingdom now you want to stick to these well-recognized sovereign coins because they have a low premium to the spot price of gold so you're buying your gold at a good value versus most other options now i just introduced a term there the spot price of gold here's why that's important the futures market sets the price of an ounce of gold called the spot price at any given minute of the trading day now because it takes cost and effort to convert a lump of gold into a specific shape and then ship it to a dealer the mints tack on an extra fee when they sell their products to precious metals dealers and these dealers in turn add their own markup before selling it to you the total price above the spot value that you pay at the store is referred to as the premium so your goal is to try to buy your gold for the lowest premium per ounce and that's why experts recommend sticking to the one ounce sovereign coins if you purchase gold in increments smaller than an ounce the premium per unit of gold increases sharply the smaller you get in size and if you buy numismatic coins the collectible value often results in large premiums over spot price and if you're wondering what numismatic coins are they're coins that have collectible value generally they're no longer minted today they exist in the secondary market where they're traded between collectors those building their emergency gold stack should steer clear of numismatics in my opinion because in a crisis coins are likely going to be valued primarily for their gold content any collectible value could easily be discounted or disregarded altogether and also unless you've got years of experience trading them it's easy to lose money or just plain get ripped off by buying numismatics a sovereign coins are a safer store of value than numismatics also because the coin dealers these are the folks that you're going to sell your gold to back someday they are by far the most familiar with these coins over all other forms they can spot fakes more easily so if you're buying from a reputable dealer you can have confidence that you're getting a pure product and more importantly when the time comes to sell your gold if you're holding it as sovereign coins a dealer will be much more likely to accept them all right well that's gold what about silver government mints also make sovereign silver coins and these are fine to buy there are also private mints that make coins but they're referred to as rounds and these rounds tend to have a lower premium to spot than the sovereign silver coins do but you do need to be a bit careful here if you buy rounds make sure to buy a brand that your local dealer recognizes and agrees to accept otherwise when it comes time to sell you might find he's only willing to buy them from you at a discount to spot or maybe even not at all by far the cheapest way to buy silver is by purchasing bags of pre-1964 u.s coins these are quarters dimes etc which is also called junk silver prior to 1964 these coins were comprised of 90 silver so today dealers sell pre-weighted bags of these coins at very small premiums over spot bags of junk silver also give you the option value that should a crisis ever force us back to transacting in silver you've now got small increment coins with which to buy low-cost everyday items like bread and milk etc but as every silver investor learns quickly silver is heavy and beyond a certain amount it becomes challenging to store and transport stacks of gold silver coins and rounds which is why those looking to own hundreds or more ounces of silver typically purchase silver bars as with rounds there are many mints that issue bars but there are two brands that have been around for a very long time that dealers are especially comfortable dealing with that's johnson matthey and engelhard all right so where can you buy gold and silver bullion well you can purchase sovereign coins rounds and bars from your local coin dealer or from an online dealer if you stick to buying the products i've mentioned here there shouldn't be any product quality differences between the two in both cases i highly recommend you deal with a firm that's been in business for years ideally a decade or more and has a well-respected brand these firms have a reputation to protect and thus will be less likely to gouge you so you inferior product or do anything shady or illegal and if possible choose a firm recommended by a long-time gold buyer whose opinion you respect ordering online offers an advantage over local dealers usually on price selection inventory dependability and personal privacy some of the most established online dealers are jm bullion apmex and mike maloney's goldsilver.com though i prefer goldsilver.com for a whole host of reasons it's a first class operation with excellent customer service order and fulfillment dependability and a wide range of solutions and no one i mean no one is better at keeping clients well educated about precious metals the reasons for owning them and what their latest price outlook is than mike maloney also and in full disclosure the investors in gold silver also back wealthy on so i can personally speak to the integrity of the people involved there now how much gold and silver should you buy for your emergency stack i get that question an awful lot you know this is one of those uniquely personal decisions that a general video like this can't give you like a specific dollar amount for so the right answer is consult with your professional financial advisor to determine the amount that best suits your risk tolerance and goals but i'll say that time and experience has proven that an effective rule of thumb is whatever amount lets you sleep well at night you should buy enough that you no longer worry about not having a plan b in place should a currency crisis suddenly hit but don't buy so much that you're going to worry about getting robbed or that you'll panic every time the gold price drops in the market and it's going to often as gold is very volatile and silver even more so so for most people you know they're going to buy somewhere between a couple hundred dollars maybe a few thousand dollars worth maybe up to about five figures of dollars uh worth of bullion to store at home just remember though that 99.9 of u.s households own less than one ounce of gold if any so if we suddenly reverted to using gold and silver as currency again if you only have a few ounces of gold and a little more than that of silver you're still going to have way more than most other people all right well once you've bought your emergency stack where should you keep it here we go this is very important the first rule of owning bullion is to convince the world that you don't own any so don't tell anyone about it greed and crisis do weird things to people so don't make yourself a target unnecessarily by revealing your holdings or where you've stashed them except maybe perhaps to your spouse or key family members whom you trust you know you don't want your gold disappearing forever if you suddenly passed away unexpectedly the point of having an emergency stack is to be able to get your hands on it quickly should you need to so some people put it in a home safe some in a bank safety deposit box nearby some hide it in the walls or buried outside there are pros and cons to each and you'll need to decide for yourself which is the best option for your unique situation the main risks to holding precious metals on your own property though are personal safety and loss so if you decide to keep boeing in your home in a safe or elsewhere nearby the smart thing to do is to tell no one the fewer people who suspect you have any gold the lower your risk of robbery and as for loss many insurance companies won't cover more than a small sum if your bullying is lost due to theft or disaster so be sure you've reviewed your homeowner's policy to know what your limits are okay holding your medal in a bank reduces the theft and loss risk but it also introduces other complications for example your access is more limited as it depends upon the bank being open right and it might not be during a financial crisis we've all heard of bank holidays that they used to have in the end you'll need to decide for yourself which option or combination of options best fits your personal risk tolerance level all right that finishes our discussion of option number one locally stored physical bullion now let's talk about option number two what should you do if you want to increase your core position beyond that well for those folks we recommend purchasing physical bullion but this time that you store remotely as mentioned most households emergency stash is going to range between a couple hundred dollars worth to a low five figure dollar sum of bullion among those households a number will want to own more precious metals than that for increased protection against monetary devaluation economic crisis asset price bubbles whatever but they don't want to expose they don't want exposure to the increased risks involved with storing greater amounts of bullying at home for investors like this who i'm guessing is probably the majority of those watching this video bullion storage companies can be an excellent solution in this space wealthyon endorses solutions like gold silver and the hard assets alliance which are representative of the benefits that these type of storage companies can offer at gold silver for example they've got a commercial grade platform that allows you to purchase gold and silver at very competitive prices and then have that metal stored in your name in a high security vault of your choice they can offer such good pricing because they use gold bullion international's industrial grade platform it's the same one used by major financial institutions like merrill lynch and bank of america which ensures that a minimum of four dealers are competing to fulfill your order in terms of storage options gold silver holds any precious metals you buy in your name this is what's called allocated storage no one else has claimed that same bullion this differs from what's called unallocated solutions where buyers have a fractional claim on a pool of bullion so when using a storage company definitely choose allocated solutions over unallocated gold silver gives you the choice of storing your bullion in any of six ultra secure non-bank vaults around the world which are audited several times each year these vaults are owned and operated by world-renowned security companies like brinks and loomis and they're in the u.s in new york and salt lake city and switzerland australia singapore and the uk so you can diversify your country risk too should you wish to and should an act of god impact the vault where your bullying is stored the contents are insured at full replacement value in bullion meaning that if anything were to happen to your bullion there you'd get back the same amount of metal as opposed to compensation via cash and should you decide at any point you want your vaulted bullion sent to you they'll ship it to you upon demand so for most investors a reputable industrial grade vaulting service offering like these it offers great benefits and is an excellent solution for expanding your gold and silver holdings beyond your initial emergency stash moving on to option number three which is for folks who want to speculate on the future price of gold and silver these are what we call the paper gold and paper silver solutions oftentimes they represented by etfs and etns these are exchange traded funds and exchange traded notes now for those looking to go beyond a defensive position in bullion and be a little bit offensive about speculating on the price action there are a number of options for risk seeking investors to speculate on the price of gold and silver but note this is heading into riskier territory versus just owning physical bullying itself those who wish to bet on the price of precious metals rising or falling can trade within the growing number of etfs and etns tied to the price of gold and silver these are securities that trade on the financial markets much like a stock does they are essentially funds that have exposure to the price of precious metals either by owning bullion themselves or more likely futures contracts so it's very important to understand that many of these etfs and etns are not fully backed by bullion instead they're exposed to what's called counterparty risk which is why they are often referred to as paper gold or paper silver don't think of them as owning the same thing as owning an equivalent dollar amount of bullion now the main reason to own one of these securities is as a bet on where the price of the underlying metal is headed if your time horizon for the bet is short well then etfs and etns they can be the better choice they're extremely liquid and they don't have the premiums and storage and shipping fees that come with buying physical bullion now the most heavily traded of these funds are gld and slv but those are heavily stacked with futures contracts as i mentioned earlier for folks who are looking for funds that are fully backed by bullion sprott offers fizz p-h-y-s that's a fund for gold pslv that's for silver and cef which holds both and venek and the vanic merc gold trust offers ounce that's o-u-n-z which has the additional option of converting your stake to physical bullion which it will ship to you upon demand there are also an array of leveraged precious metals etfs and etns for those really looking to take bigger risks on the price direction but you know unless you're an experienced precious metals trader with discretionary capital to lose i really recommend you stay away from these at last there's option number four for those with a high risk tolerance who want to win big if gold and silver rocket higher you can gain leverage speculation through owning mining shares now think about it this way where does gold and silver come from well mining companies dig them out of the ground so when the price of the precious metals rises so do the prices of the companies that mine them but the mining shares generally rise or fall much more than the price of the underlying metal why is that that's because the miner is still sitting on ore in the ground so as the price of say gold goes up not only is the gold the miner is selling today more valuable but all of the ounces it will dig up in the future just became more valuable too so in this way shares of stock and gold mining companies are said to be a leveraged play on the price of gold itself investors who think that gold is undervalued right now and position for a sharp bounce can buy shares of gold mining companies and expect to ride a much bigger wave higher versus just owning bullion if their prediction indeed comes true but there's no guarantee of that mining shares also introduce company risk and i got to tell you many of these companies in the past have been run quite poorly so it's absolutely critical to understand that mining companies are extremely risky and over the past decade precious metals mining shares have been one of the worst performing sectors of the market i mean folks they have been absolute widowmakers that said with many poor quality players having died off in the past decade and the remainder forced to upgrade their balance sheets and their management teams the prospects for these miners are suddenly looking pretty darn bright with gold now above seventeen hundred dollars an ounce and silver above twenty five dollars an ounce so if you're interested in the space the experts strongly advise that those investing here diversify and do so by owning general indices of mining companies gdx is a fund that's very popular that holds a portfolio of the major the largest mining companies there's also gdxj which is a fund that offers an index of junior miners remember though those have even more risk than the majors but the other thing you can do is you can follow the guidance of analysts who follow this space closely and do their best to identify the most promising most solvent companies from all the riff raff a few good newsletters here our gold newsletter and gold stock analyst are those are two respected newsletters also jeff clark who's gold silver's senior precious metal analyst he shares his mining stock trades with the public for free at his twitter account at the gold advisor now while shares of individual precious metals mining company can offer truly staggering results in a gold bull market and you know i'm talking like you know sometimes in excess of a thousand percent in certain cases don't put any capital at risk in the space that you can't afford to lose these are wildly risky all right now at this point in the conversation the question that i get often is how do i decide how much of my capital to allocate across each of these options well the answer lies in clearly understanding your current financial situation your future goals and needs and your risk tolerance this is why we're so adamant in encouraging investors to make their decision in partnership with a professional financial advisor hopefully not one that sneers at the mere thought of owning gold like the normal kind of conventional advisors do so if you're looking for a good one or having trouble finding one on your own just schedule a free consultation with a financial advisor who's endorsed by wealthyon you can do that by filling out the short form at wealthyon.com these guys who you've seen on my program every week they've got years of experience working with investors to answer this exact question of how much to own and where to invest it along the spectrum of solutions that i'm giving you so why publish this video now as i mentioned at the start i was at a conference recently where precious metals were a key topic at that conference all the speakers underscored the fact that the fed is in a trap of its own making having increased the currency supply by nearly 10 times since 2008 first through qe1 then qe2 then 3 and then the massive stimulus response to the covid pandemic the fed can now neither raise interest rates nor reduce its balance sheet without killing the economy and the financial markets from here on out it looks like it's going to be ever more easy credit and ever more stimulus until the economy collapses under the weight of too much debt on that kind of trajectory the purchasing power of the us dollar looks like it's only going to decline faster and faster the best hope for the average investor is to own tangible assets that can't be inflated away gold and silver are the easiest way for the average investor to do this but to benefit from the purchasing power protection of precious metals you have to be positioned in them in advance of the coming fiat currency devaluation so if you're not well positioned already today make it a near-term priority to become so all right folks if you've enjoyed this explainer video and how to purchase precious metals to support us in making more of these please take one second and click the subscribe button below as well as the little bell icon right next to it and to get the free report summarizing everything i talked about in this video simply go to wealthyon.com how to buy all right thanks for watching you

Channel: Wealthion

Views: 314,121

Keywords: gold, gold and silver, silver bullion, buy gold, how to buy gold, how to buy silver, gold bullion, adam taggart, wealthion adam taggart, how to buy gold and silver, silver gold, best way to buy gold, buy gold and silver, buy gold or silver, buy gold bullion, buy silver and gold, gold price, guide to buying gold and silver, how to invest in gold, how to invest in silver, how to buy precious metals, how to invest in precious metals, which gold coins to buy

Id: RdeZUlMVfeE

Length: 22min 46sec (1366 seconds)

Published: Wed Jun 09 2021