By MoneyMorning.com.au
Within the space of 18 months, the debt crisis has grown from a hatchling in Greece, consumed a few bloated PIIGS, and then gestated into a full-blown, fire-breathing monster with a wingspan the width of Europe.
Europe’s debt crisis has grown into a monster very rapidly.
Politicians can scurry around and have as many emergency meetings as they want, but they’re delusional if they reckon they can fix debt with debt.
And all this debt is eroding the value of your cash.
But there are alternatives instead of holding onto paper notes.
Like precious metals.
It’s best to think of precious metals as an alternative to holding cash in a portfolio.
The risk, of course, is that gold and silver prices fall significantly. But I don’t expect this to happen. As you’ll know if you read my articles earlier this week…
It’s best not to think of gold and silver metal as a way to make you rich though. Think of it as something that will work for you as a store of value.
Even though the spot price of gold has dropped from its earlier highs – investor demand for the metal is outpacing supply.
The increase in popularity in bullion has left many investors new to the gold and silver market wondering which is the best way to get their hands on precious metals.
My favourite option is buying physical bullion.
Buying physical gold or silver is more expensive because dealers charge a premium. You then have the cost of delivery, storage and insurance. But the nice thing about it is you actually know you own it!
You can choose from coins, antique coins, nuggets and bullion bars.
Coins are pretty, but because of the detail they’re more costly to buy. Antique coins are a specialised market. And nuggets are great, but the price varies on purity and other factors.
If you’re investing for the long-term, in my opinion it’s best to do it with bullion.
You can buy the metal directly from a dealer’s office. Or put an order by phone or online. Delivery is easily arranged. But ask questions about the method used and whether it’s insured.
While there are plenty of bullion dealers in Australia, there’s another surprising way to get your hands on the shiny stuff.
Bizarrely, eBay has quite an active silver market! I’ve bought and sold successfully this way quite a few times.
This is much riskier than going through a registered dealer. And it’s essential to get the metal tested. This is as easy as going to a business that buys scrap gold and silver, and asking them nicely to scan it for you.
Importantly, stick with good sellers when you find them. And it’s a smart move to get the seller to send it recorded delivery and insure it.
Enjoy that bullion!
Alex Cowie
Editor, Diggers & Drillers
[Ed note: Alex gave subscribers a complete rundown on how to buy, hold and sell physical gold bullion in the May 2011 issue of Diggers & Drillers. If you’d like to know more about Alex’s investment advisory service and buying gold, click here…]
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From the Archives…
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2011-10-12 – Kris Sayce
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2011-10-10 – Kris Sayce
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