Investing in gold and silver is an often-overlooked way to diversify and add depth to your
investment portfolio, with most investors in 2020 just looking for a simple index or mutual fund
to toss some excess income into and hope it accrues moderate interest passively. Gold and silver,
however, are a different investment vehicle entirely compared to other modern investment
options, but are just as reliable and low maintenance as the more popularly traded funds out
These two assets can be a great addition to anyone’s portfolio, whether you’re looking to retire
soon and share your wealth, or you’re young and just getting into financials. That said, here are
some ways you can make money with gold and silver:
Remember, There’s More Than One Way To Purchase
Gold and silver are typically thought of as concrete, physical assets you can hold in your hand.
Maybe you’ve imagined silver investors to be buying it in the form of expensive jewelry, or gold
investors to have a stack of golden bricks buried in the yard. This is not the case at all, and
ownership of these two assets comes in many different forms.
- Online Holdings
Gold and silver can be bought, sold, and held digitally just like any other publicly traded
fund. Did you know you could have a silver IRA? Yes, you can add silver to your IRA’s
portfolio diversification strategy, and it’s a great asset to have in there as the dollar
continues to erode in value and inflation perpetuates.
Investors will also be pleased to know they can purchase and hold gold in the form of
gold funds, gold ETFs, gold futures options, or even gold mining stocks as a form of
investing in the companies mining for this actual asset itself. All of these can be found on
your everyday public exchanges, and through your choice of personal brokerage.
The same can be said for silver and its publicly traded assets as well, with both being
easily accessible and easily researched through a myriad of online trading sources. There
are several gold and silver ETFs on the market expected to churn out north of a 35% rate
of return in the fourth quarter of 2020, and would serve as a solid investment to any
- Physical Metals
Of course, there’s always the classic option as well. Investors who want physical gold in
the form of coins, wafers, or even gold bars themselves, can simply purchase the straight
precious metal itself from certified online sources, and likely local ones as well if the
desire to obtain is there. The upside to this form of buying gold or silver is nothing
outside of trust and the ability to handle your investments yourself—but that also can’t be
underestimated. Buying physical gold or silver could be on the table even for someone
with digital shares.
It does also come with its own potential pitfalls as well, as is with any investment with a
physical presence. This may present a slightly riskier investment because of the potential
for theft and the fact that it does have to be stored somewhere, but each investor’s
scenario and preferences are unique.
Why They Are A Quality Investment
Investors know that the value of the dollar, be it USD, British Pounds, Euros, or any other form
of currency, does depreciate over time, typically within a range of about 3% to 5% give or take a
few digits in some cases. This is why you invest, not only in the hopes of outgaining inflation
and avoiding the slight loss in relative value your money will take annually as a sitting duck, but
hopefully to actually turn a profit as well.
Gold and silver are one of the best ways to achieve this, with their appreciation rate generally
holding steady over the last 20 years. Although they do fluctuate significantly at times due to
speculation, the fact that they’re not just a physical asset, but a precious metal as well, projects
well for their long-term value as a safety net or a secondary and alternative investment option.
Gold also serves as a great asset to have in your portfolio when it seems that everything else is
going negative. You’ll likely be a lot less anxious about the cost per share dropping on a physical
gold or silver asset than you would for any other index or relatively novel fund, and this is
especially true if your assets are held physically or at home.
The Bottom Line
Certainly, it may not be the best idea to put your entire portfolio into gold and silver, just as
being too narrow on any other asset would be a rough go of it as well. Staying away from the
extremes, however, these two precious metals can suffice to be a very wise investment for a
well-managed, properly maintained portfolio. Whether you’re investing for the future and hoping
to preserve your family’s wealth, or speculatively checking into gold and silver for the first time,
there’s an asset for everyone here.