Investors seeking exposure to precious metals must deliberate between the convenience of buying shares of an electronically traded fund (ETF) and the ultimate security of owning physical gold and silver bullion. We tasked ourselves to take a closer look at each to understand their important distinctions.
If you are new to investing in gold, you may be confused by the difference in purity levels and if they matter or not. Let's dig into this topic and give you a simple understanding of gold purity and its relation to bullion investing.
Smart investors know that buying gold and silver makes sense. These and other precious metals can help diversify an investor's holdings, offsets risks in other assets, generate income and more.
What is a Troy Ounce?
First-time precious metals buyers are often confused by the difference between a troy ounce (ozt) and a "regular" ounce, especially when their 100 oz silver bar actually weighs 6.85 lbs on the scale instead of 6.25 lbs. Did they receive more silver than they paid for? The answer lies in an antiquated system of measurement still used today for precious metals known as troy weights.
Why is the silver price per ounce for American Silver Eagle Coins and Silver Buffalo Rounds so different? It's perhaps the most commonly asked question of bullion dealers from first-time buyers.
If you're a first-time gold buyer, you shouldn't be intimidated by the prospect of buying gold. Though the task may seem daunting, the process is rather easy once you know the basics. You should start by asking yourself several questions.
A common misconception among gold buyers is that gold dealers make money when the price of gold increases, and subsequently lose money when the price of gold decreases. Generally speaking, nothing could be further from the truth. Gold dealers are highly risk averse given the volatility of the metals market, and so they are very unlikely to speculate on future spot price. (Review: Spot price is the over-the-counter commodities exchange price for a 400 oz good delivery gold bar. It is the price quoted on new stations as the "gold price".)
The term “junk silver coins” can be very misleading to anyone not familiar with the bullion industry. After all, how could a bag of “junk” cost thousands of dollars? It is only when we discover the nature of the contents of the bag that we realize that junk silver coins are anything but junk.
Silver is a versatile precious metal offering myriad uses and investment opportunities. As an element, it is much more abundant in nature than gold and therefore is significantly more affordable per ounce than gold.
How much is gold worth? Under normal circumstances most of us don't dwell on how a product we pick up on a store shelf came to get its price. If we take a few moments to contemplate the raw materials, labor and transportation costs needed for that product to reach us, not to mention the retailer's markup, it is clear that the price assigned to a given product is the result of a series of complex yet logical forces involving various actors and transactions throughout the supply chain. Is the price of gold any different?
The Engelhard Corporation was founded by Charles Engelhard in 1902. In the following years he made many business acquisitions, converting the company into the world's largest precious metal refinery and developing silver alloys for industrial applications. He is also credited with inventing liquid gold for decorative purposes.