How to Buy Gold and Silver / Methods of Ownership

1. The most secure, but most challenging method of gold and silver ownership is to buy and store the physical metal. Storage can be done using a safety deposit box or a safe. If possible, this is most preferable method, but costs and risks associated are higher.

2. A popular way to own precious metals are ETF (Exchange-traded fund). Gold and silver ETF's function like shares and are traded on stock exchanges. Storage is not an issue, but reporting methods are becoming dubious with some ETF's clearly over-extended. We do not recommend this method of buying gold and silver UNLESS the ETF states clearly in their documentation that they have a 1:1 ratio. This means that for every ounce of the metal they sell, they keep an equivalent amount of the metal in their vaults. If this is not clearly stated then buyer beware.

3. Physical gold and silver trusts make an excellent buying option for those who are unable or unwilling to store precious metals themselves. However, you must be aware that these also trade on stock exhanges and can be vulnerable to wider price swings.

How to Own Gold and Silver

Own them for the long-term. These are not investments you buy into for a few months and then sell off to earn a small profit.

The biggest thing a new buyer must understand is that precious metal prices can be volatile and they are becoming moreso as we enter uncertain financial times. Gold and silver can flucuate significantly during a trading day (unheard of a few short years ago). You must get used to this and focus on the historical trend. Buy them and HOLD them. Remember the following:

In 1975, gold was selling between $130 and $185 per ounce (over the 12 month period). Today gold is nearing $2000 per ounce. IF you had bought $10,000 worth of gold in 1975 it would be worth approximately $140,000 today.

Gold and silver are your best option for protecting your financial future.

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