When most people think of gold and silver investments today, they think of futures contracts, of ETFs such as the SPDR Gold Trust (NYSEARCA:GLD), and the iShares Silver Trust (NYSEARCA:SLV), and of mining companies.
However, many precious metal bulls advocate that investors hold some of their precious metals in coin form.
This seems burdensome. First, gold and silver coins need to be purchased. This means finding a dealer, figuring out which coins to buy, and paying a premium to the spot price. Then these coins need to be stored.
Furthermore, they can be lost, stolen, or damaged. None of these issued arise with precious metal ETFs or with mining companies. Why go through the trouble?
The reason one would go through the trouble of buying gold and silver coins is very much related to why one might invest in gold and silver; gold and silver coins function as insurance against the banking system.
Gold and silver are stores of value!
The reason one would go through the trouble of buying gold and silver coins is very much related to why one might invest in gold and silver; gold and silver coins function as insurance against the banking system.
Gold and silver are stores of value!
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