Jump to: Precious Metals Markets | Why Buy Gold and Silver | Physical Gold and Silver Options | Gold Coins and Bars | Silver Coins and Bars | Buying Gold and Silver Online vs. Locally | How to Evaluate Reputable Dealers | How to Buy Physical Gold and Silver | Gold and Silver Mining Stocks | Gold IRAs | Investing in Gold and Silver ETFs | Buying Gold and Silver | FAQs
Want to buy gold and silver? I created this guide to show you how. I started buying gold and silver off the streets back in 2009. Today, I run the world's largest independent Gold & Silver e-Tailer.
Quick Facts
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Understanding market dynamics—supply and demand, economic indicators, currency values—is key to making smart decisions when buying gold and silver.
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Buying gold and silver can hedge against inflation, diversify your portfolio and preserve wealth during economic uncertainty.
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When buying gold and silver you have options—bullion, coins and bars—and you need to evaluate dealers, consider storage and understand spot prices vs premiums.
Precious Metals Markets
Precious metal prices are affected by various factors. Here are a few:
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Supply and demand
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Geopolitics
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Currency values
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Economy fluctuations
Limited supply and high demand means prices could go up, making gold and silver good assets during economic uncertainty. Gold and silver also move opposite the US dollar, so when the dollar goes down, precious metals inherently go up in value.
Economic data like jobs reports and GDP growth also impact the precious metal market. For example a strong US economy leads to a possibility of higher interest rates and gold becomes less attractive so prices can go down. During economic downturns investors flock to safe-haven assets like gold and silver bullion to preserve their wealth and prices can go up.
Why Buy Gold and Silver
Buying gold and silver offers:
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Inflation hedging
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Preserving purchasing power during inflation
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Protecting wealth during economic uncertainty
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Safe-haven assets, less volatile than traditional markets.
Beyond inflation hedging, holding gold and silver offers great portfolio diversification benefits. They have a low correlation to other asset classes like stocks and bonds, which reduces overall portfolio risk and volatility and can enhance risk-adjusted returns.
Silver is also a versatile investment with industrial and monetary uses, so it’s a valuable asset during market downturns. Buying physical gold and silver means you own physical assets that have held their value over thousands of years.
Historically, gold has been less prone to market fluctuations. Its primary use in jewelry making and as a traditional investing vehicle makes its price movements more stable and driven by macroeconomic factors and geopolitical events.
On the other hand, silver has significant industrial uses. That can lead to higher market volatility, as changes in industrial demand can deeply impact silver prices.
Read our article on the differences between gold and silver.
Physical Gold and Silver Options
When it comes to physical gold and silver investments, you have:
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Coins: A precious metal wafer struck in a coin format by a government mint typically stamped with a legal tender face value. For example, the American Silver Eagle Coin has a face value of $1.00. So technically, you could use it as a $1.00 bill. Gold and silver coins may also carry numismatic, or semi-numismatic value, drawing demand from both investors and coin collectors.
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Bars: A precious metal lump or ingot struck by both government mints and private mints. Typically, bars do not carry legal tender face values and cost less per troy ounce than coins.
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Rounds: A precious metal wafer struck in a coin/round format by a private mint. Typically, rounds cost less per troy ounce than coins, and do not enjoy legal tender status.
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Jewelry: The main benefit of buying gold jewelry is the ability to easily transport it anywhere you want. Just make sure you're buying high-grade bullion jewelry and not jewelry from a jewelry store, as that jewelry carries a very high mark-up.
We will break down gold coins and bars separately from silver coins and bars. Understanding the differences between these will help you choose the right one for you and your needs. Whether you want collectible coins, large bars, or something in between, there’s a physical metal investment for you.
Gold Coins and Bars
Gold coins and bars are the most popular forms of physical gold investments. Here are some popular gold coins:
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US Gold Eagles
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Canadian Gold Maple Leafs
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US Gold Buffalos
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Perth Mint Gold Kangaroos
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Royal Mint Gold Britannias
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Chinese Gold Pandas
These coins are known for their quality and purity and come in various fractional sizes so it’s accessible to many investors.
Gold bars are preferred by investors that want lower premiums on the front side and care less about sell back value in the future. 1 oz and 1 Kilo bars are popular, with Argor-Heraeus and Valcambi being well known in the market. Kilo gold bars weighing 32.15 oz are great for those who want to save money buy purchasing in bulk. Gold bullion has historical significance and plays a crucial role as a store of value in the fiat currency system.
Read my article on the Best Gold Bars to buy in 2024.
Silver Coins and Bars
Silver coins and bars also have investment options. Popular coins like US Silver Eagles and Silver Maple Leafs are bought by investors for their quality and liquidity. Other types of silver coins are 90% Junk Silver, Silver Dollars, and Truth Series Coins. These coins are valuable not only for their silver content but also for their collectible value.
Check out our list of the 12 Best Silver coins to buy in 2024.
Silver bars come in different sizes and forms:
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Small 1-ounce bars
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Large 100-ounce bars
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Minted bars which are printed with design
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Poured bars which are created by pouring molten silver into molds
Popular sizes for silver bars are 1 oz, 5 oz, 10 oz, Kilo, 100 oz, and 1000 oz bars for different investment levels and preferences.
Buying Gold and Silver Online vs. Locally
When buying gold and silver bullion, you can either buy online or from local coin shops; each has its own pros and cons. Because we buy and sell in volume, online dealers have a wider selection and better prices. They also provide products in better condition since they ship directly from the source of production.
But buying locally has some advantages:
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Local buying gives you immediate possession.
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And you can pay in cash if you want to.
How to Evaluate Reputable Dealers
Evaluating dealers is key to a safe and successful investment. One factor to consider is the dealer’s industry experience. Dealers with over 10 years in business like SD Bullion have stability and can provide consistent service. Transparency in pricing, fees and buy-back policy is also important to avoid surprise costs.
Also, reputable dealers should:
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Be licensed, audited, and fully compliant with regulations
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Have customer reviews and industry testimonials to provide insight into their reputation and reliability
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Have a physical address, not just a P.O. box, to add to their credibility
How to Buy Physical Gold and Silver
Buying physical gold and silver starts by evaluating the dealers. You need to check online reviews, certifications and market presence to make sure you’re dealing with a trusted source. After you select a dealer, you need to understand the payment methods and fees. It is also important to understand the characteristics and risks associated with gold bullion, including its purity, cost efficiency, and the need for secure storage and insurance.
After you buy, securing storage for your gold and silver bullion is key to protecting your investment. Options are home safes, which are convenient but require security measures, and professional vault services, which provide high-security storage for larger amounts. Also, something most folks don't know is that your home insurance will not cover precious metals in the event of a loss.
Buying
To buy, you need to know the dealer’s accepted payment methods. Bank transfers and credit cards are common but confirm with your dealer. Also, expect to pay a premium over the spot price, which is the dealer’s profit margin and other costs.
Know the current spot price and market conditions. Additionally, consider the dealer’s buy-back policy, as this will affect the liquidity of your investment. A smooth and transparent buying process is key to a successful order.
Storage
Get safe storage for your gold and silver bullion investment to protect it from theft and damage. Home safes are convenient to have your assets with you but require security measures to prevent theft. Safes should be fireproof and secure from unauthorized access.
For larger investments, professional vaulting services provide high-security storage options. These services give you peace of mind with their advanced security and insurance options. Many reputable dealers also offer storage and insurance services, so it’s easier to protect your investment. At SD Bullion, we're one of the only dealers that owns our own storage depositories. Most other dealers simply lease out someone else's storage to you at a markup.
Gold and Silver Mining Stocks
Gold and silver mining stocks are another way to get exposure to the precious metals market. These stocks' performance is affected by the market price of the metal they mine, but there's not always a direct correlation. When metal prices are strong, major mining companies can give dividends to their shareholders, and their stock prices may experience modest appreciation.
Junior mining companies that focus on exploration and development are more volatile but offer higher potential returns. Investing in individual mining stocks requires understanding industry specific factors like feasibility studies and reserve estimates. This knowledge is key to assessing the risks and potential returns of mining stocks.
Gold IRAs
Gold & Silver IRAs allow investors to diversify their retirement savings by investing in physical precious metals like gold, silver, platinum or palladium. Setting up a Gold IRA (Individual Retirement Account) requires choosing a reputable company that understands IRS regulations to avoid penalties. These IRAs must be managed by a custodian that will store the metals in an IRS-approved depository. SD Bullion is the only dealer that owns an IRA Approved Depository.
Reputable Gold IRA companies offer fund rollover from existing retirement accounts to a new Gold IRA with specific purity requirements for the coins and bars. The tax benefits are the same you get from your current traditional or roth IRA.
Investing in Gold and Silver ETFs
Gold and Silver ETFs offer a convenient and cost-effective way to invest in precious metals without the need for physical delivery and storage. These exchange-traded funds invest in gold and silver bullion, tracking the performance of their prices. ETFs provide liquidity as they can be easily bought or sold through stock exchanges during market hours. Some Gold ETFs specifically focus on gold investments, while others may include both gold and silver.
Investing in an Exchange-Traded Fund offers the following benefits:
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Diversification due to the low correlation of precious metals with other asset classes like stocks and bonds
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Transparent and easy-to-track pricing
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Popular choice for investors looking to gain exposure to gold and silver without handling physical precious metals products.
*BIG DISCLAIMER: Gold and Silver ETFs are not something I recommend. The reason is that the main objective of owning precious metals is to have something physical outside of the system, that cannot be manipulated. If you buy precious metals ETFs, you never hold the investment yourself, and there's plenty of public evidence that suggests most of the ETF companies do not own or have enough metal to back their positions.
Buying Gold and Silver
Buying gold and silver online is not much different than buying anything else online. You add the product(s) to cart, choose your payment method and shipping information and checkout. You'll receive an order confirmation as well as a tracking confirmation once the order is packaged up and headed your way.
The most important aspect is selecting the right product from the right dealer. You've already found the best dealer. Now, for your first order, pick your favorite gold or silver bar or your favorite gold or silver coin, and you'll be on your way. Once you hold your first order of gold and silver in your hands, you'll know why they call them precious metals.
FAQs
How do I start buying gold and silver?
Research reputable dealers, know the different forms of physical metals, and your investment goals and risk tolerance.
How do I buy gold and silver smartly?
The smartest way is to compare prices from multiple dealers, know the spot price and premium and choose the form of metal that fits your investment objectives.
Can I buy gold and silver from my bank?
Some banks sell precious metals but it’s often better to buy from specialized dealers with better prices and selection.
Who to buy gold and silver from?
Reputable dealers like SD Bullion are recommended because of their industry experience, transparency and customer reviews.
Should I buy coins or bars?
It depends on your investment goals. Coins are more collectible, bars are more cost effective for large investments.
Conclusion
In summary investing in gold and silver can offer many benefits: wealth preservation, portfolio diversification and protection against economic uncertainty. Knowing the precious metals markets, the different forms of physical metals and the buying options can help you make smart investment decisions. Whether you choose to invest in physical bullion, ETFs or mining stocks, make sure to research reputable dealers, consider your storage options and know the costs.
