Rule # 1: Let’s Get Physical!
Paper ETF’s like the SLV silver fund are ran by banks and in short, not recommended in any way. Holding paper silver will do you no good at all in a situation where you no longer have access to this or the banks no longer function to support the value of your non physical asset.
To unlock their true potential of precious metals as a portable and anonymous investment vehicle, you need to buy the physical precious metal and not the digital, paper or fund version.
Rule # 2: Pay Spot. It’s that Simple.
Remember, gold and silver are traded based upon their weight of pure metal. A tarnished and scratched up old silver round is worth as much as one in brilliant uncirculated mint condition, once they hit the melting pot of a refiner. You should be looking to pay as close to spot price as possible. Collecting precious metals has a skill and “art“ to it, but it is not quite investing.
There are many costly mistakes to be made by beginners in rare coin collecting, banknote collecting and precious metals purchasing. When beginning, I would stick to the 1 oz. Rounds and silver coinage like walking liberty coins and silver maple leaf coins. Certified bars of bullion like gold and silver can be found online and in many local shops.
Avoid intellectual property items (ie, featuring cartoon characters, actors, etc.), commemorative coins or specialty coinage like holiday themed items, and use only reputable dealers for the purchase.
Rule # 3: Start Simple. Start Small.
Too many investors, upon deciding to get into precious metals, buy too much physical silver or gold at once and in the wrong types. A good strategy for a beginner is to set aside an amount each month they can afford and purchase on a schedule. For example, buying one or two silver rounds each payday. This keeps your stockpile growing gradually
and avoid getting caught losing money on a swing in the spot price of silver.
Rule # 4: Watch the Price “Highs and Lows”
New highs in gold and silver prices bring new investors and market attention to the precious metals market. This generally causes a downshift in fiat currencies backed by banks. After this period, the banks will flood the market “shorts” to drive the price back down. Forbes, as well as many other outlets online, have great information on shorts and how to understand them. Mainly here, you should familiarize yourself with how the market operated in relation to gold and silver. It will help you avoid investing too much, into the wrong metal, at the wrong time.
Rule # 5: No Fakes. No Frauds.
Historically, precious metals like silver has not been a major victim of counterfeiting due to its lower cost on the market. Gold buyers however, have seen many fakes on the market over the years. As the price of both these precious metals rise, we will continue to see an increase in the amount of counterfeit products on the market. Buyers should educate themselves before purchasing to make sure the seller is reputable and the product is as advertised.
Rule # 6: Learn. Learn. Learn.
You should always be educating yourself on important things like money, government, free markets, and how they all are connected and affect our day to day lives. You should learn more so you are better able to position yourself for what could be coming. Utilize your free time by finding new avenues to learn from. This will always pay of. Use internet resources like my website (VarietyErrors.com) to read articles and access FREE resource guides on coins, banknotes and precious metals.
Consider reading some books on the history of silver and the role it plays in society and politics. This information has played a big part in my collecting experience as you will notice trends repeating themselves over the course of human history. Like I said, things are connected and intertwined… including currency and precious metals.
As a silver investor, you are a commodities investor. You should study how the commodity market works, and how it relates to currency fluctuations and general market conditions. Knowledge is golden, and the more you have, the less you will be blown around by the winds of ignorance.
Rule # 7: Protect Your Investment
While it is wise to keep some of your silver where you can get to it easily, it is also important to keep the bulk of your precious metals in a safe place. This can be a hidden safe, buried cache (Companies like BuildandSurvive.com offer these), or a storage facility of some type. You can establish an account with a brokerage warehouse or other public storage facility, but you should make sure your holdings are kept segregated and accessible to you when you wish to inspect them. Safety deposit boxes are a good place to store physical metals. Secured storage of your metals is nice, but you must always be aware that any metals you keep in banks are subject to government confiscation. Your precious metals do absolutely nothing for you if you cannot access them.
Rule # 8: Stacking Mode
Once you have built your “insurance” stack of gold and/ or silver, and have also secured your backup metal position, then you are in “stacking mode”. At this point you should be steadily buying silver and gold. Keep within budget and keep some spare cash reserves for unexpected expenses. Also have cash ready for when a good deal comes along!
Rule # 9: When to Hold ‘Em, When to Fold ‘Em
Just like many things in our lives, money flows in cycles. Assets go from overvalued, to undervalued, to overvalued again. Those who are willing to learn and recognize the cycles can profit by buying undervalued assets and cashing them in once they become overvalued. Buy physical gold and silver now while it is still at affordable prices.
Rule # 10: When All Else FAILS.
It is not that fun to think about a dystopian future, but should a severe economic collapse occur, leaving paper currency and other assets worthless, silver and gold will be primary currency for purchase of goods and services along with the classic trade/ barter system.
Gold will be a great resource for long term wealth stores, but silver will be the most useful for day- to- day transactions. Stock up on silver primarily, it will be super useful in the event of an economic collapse or emergency.