If you are investing in physical gold or physical silver, you will quickly get an understanding of why precious metals make great investments. Of course, you probably already heard that you should invest in gold, silver or platinum to protect your hard-earned money against inflation. This piece of advice is spot-on and will always be correct. Precious metals go up in price when the price of everything else is shooting up. In other words, it helps you keep up with inflation.
Just as importantly, it helps you keep up with currency devaluation. Heaven forbid if the U.S. dollar crashes, the value of your gold and silver holdings will skyrocket. At the end of the day, you don’t lose any money. Compare this with just putting your money in the bank. If you put paper money in the bank and the price of everything goes up, guess what? Your paper money is worth less – that’s the bottom line. People find this out the hard way when they invest in stocks that don’t really go up in value. This is basically just as good as putting their money in the back and leaving it to rot. If you want to keep up with inflation, if you want to protect the value of your money, consider precious metals.
However, there are different ways to invest in precious metals. You can buy the stocks of silver or gold mining companies, you can buy Exchange Traded Funds and you can buy gold or silver coins. Finally, you can buy physical gold or silver. All these different methods in precious metals investment options have their advantages and disadvantages. I’m not going to go into those advantages and disadvantages with this article. You need to however, keep those advantages and disadvantages in mind. Depending on your investment style, depending on your outlook, your lifestyle, also your attitude regarding investments, some would make better sense than others. Regardless, you need to diversify into precious metals if you want to protect the value of your hard-earned money.
With that said, if you have decided to invest in precious metals and are looking to invest in the physical forms of those metals, in other words, you’re buying 1 gram silver bars or 1 gram gold bars, you have to always focus on safety. Physical gold and physical silver are in such demand and they are so easy to sell that you’re basically rolling a dice with your physical safety if you’re walking around with a silver bar or a gold bar. It’s very important for you to figure out how to keep your 1 gram silver bar safe if you are invested in silver. Thankfully, there are some simple steps you can follow so you can make sure that your 1 gram silver bar investment is safe and is protected from theft. Also, by keeping your physical metal investment safe, you’re protecting yourself from possible robbery or possible violence.
Depending on the amount of precious metals you have, it may or may not be a good idea to store your precious metals investment in your home. You have to keep in mind that people all over the world know that a 1 gram silver bar can easily be traded in for cash. This is one of the most enduring qualities of precious metals. They are very liquid. You can easily sell them off. As long as you find a precious metals dealer, you stand a high chance of getting the actual market price for your precious metals holding.
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The same can’t be said of real estate and other investments. They are not very liquid. With that said, it only makes sense to store small amount of physical gold or physical silver in your home. If you are storing kilos or pounds of precious metals, your risk of being robbed increases. It would be a good thing if people just entered your home to take your stuff but chances are, if they come to your home armed, they might take your life or the life of a loved one as well. Keep this in mind when thinking of storing your 1 gram silver bar in your home.
With that said, you can increase your protection by making sure that you store precious metals only if you live in a safe neighborhood. You would also do yourself a favor if you buy a safe that is bolted to the ground, is very hard to crack and you also have an alarm system in your home. The big downside with storing precious metal investments in your home is that you have to spend lots of money on safety precautions like a closed circuit TV cameras, alarms, you might even need to hire a guard. It can be a headache if you’re storing a lot of precious metals in your home.
A better alternative would be to store it at a bank.
There are many local banks that have safety deposit box service. This is like renting an apartment. Your bank give you access to your safety deposit box and you put in whatever you want to put in and then they take it from you and put it in a vault or put it in a safe area.
The great thing about this is that it’s normally safe because when they give you the box, you have the key. You open the box, you put your 1 gram silver bar in there or your 1 gram silver bars, you turn the key, you lock it and then they put it back into the vault. The problem with this type of system is that it can only accommodate so much 1 gram silver bars. Precious metals tend to be heavy -- gold is definitely heavy. So if you are going to be storing kilos or many pounds worth of 1 gram silver bars in your safety deposit box, this might not be a practical way to do so.
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Also, it might not be very cost-effective. You have to remember that you’re paying for this storage. You have to spend money in terms of the space. However, the more gold bars you are going to keep safe, the bigger the space you need. It can take a lot of your money. It might not be cost-effective if you reach a certain volume of physical silver bars.
A third approach would be to use a professional precious metal depository. These businesses exist to store precious metals. That’s what they’re in business for, that’s what they are trained to do and that’s what their infrastructure is for. As a result, you can be sure that they have the proper security and the proper processes to store your 1 gram silver bar safely.