How to Buy Precious Metals

The race to debase currencies around the world are hurting ordinary people who saves their money and pay their expenses under a fiat system. For example, if you purchased an item in 2000 for $1, it will cost you $1.28 today! This is a 27.5% rate of inflation change based on using the phony Consumer Price Index (if we used the Austrian Money Supply, the numbers would be much higher). This occured from a series of bad fiscal and monetary policies from government around the world. They were taught that printing cheap money is the best way to combat recessions and depressions, but one of the consequences from this policy is inflation.

Inflation is a loss of purchasing power. One of the symptom of inflation is higher prices on food and energy. In order to preserve your purchasing power, you must start accumlating precious metals as part of your portfolio and asset ownership. We recommend buying gold and silver as a hedge against currency devaluation and civil unrest that is occuring around the world. Many people on Main Street have never purchase gold or silver before so we will give you some useful tips and advice.

How Do I Purchase Precious Metals?

There are many ways to purchase gold and silver. The easiest way is to buy jewelry. However, it does not possess pure gold or silver so you will not be fully protected against inflation. This does not mean that we don’t encourage buying jewelry though. We believe the best way to own gold and silver is to pruchase the physical bullion through a bullion dealer.

There are many ways to purchase from a bullion dealer. Nowadays, many dealers make tranactions through the internet only. If you choose to take that route, we recommend researching for reviews and testimonials on the bullion dealers before making a purchase. Here are some resources where you can find reviews:

Should I Buy the Coins or the Bullion Bars?

It depends on your preferences. If you prefer paying less premium, then you should buy the silver/gold bar rather than the coins. The coins are in high demand since they are popular and one of the cheapest way to own pure gold or silver.

The (Perth) mint sold 10.7 million 1-ounce silver coins since July 1 last year, according to Sales and Marketing Director Ron Currie. That’s 66 percent higher than the previous full fiscal year and about 10-fold more than five years earlier. Sales of 1-ounce gold coins will be close to a record, he said.

The bullion bars are in less demand since you must pay more such as the 10 ounce silver or gold bars. Therefore, the premium is lower compared to coins. Many people prefer the coins just because it is easier to store and maintain.

How Do I Know if the Bullion is Real?

One of the easiest way to test your silver bullion is to perform the magnet test. If the marget does stick to the metal, then that indicate that the silver is real. If it doesn’t stick to the metal, then it is not real. Check out this video below as an example.

If you want to test your gold bullion (this will work for silver bullion too), then you can try the acid test. All you have to do is place a small drop of acid onto the metal and if the acid doesn’t change color then that indicate the gold is real. However, we do not recommed performing this test on your physical gold bullion because it can damage the value of the bullion.

The best way is to take the gold bullion to a jewelry or pawn shop and they can help you verify if your holdings are real.