The choices for gold and silver investors and speculators today are truly varied (fabulous dah-ling!). No one should say “I don’t know how to get it into my situation” or “but I have a 401(k) plan so forget about precious metals!”
By the way, in this article you’ll see some gold- and silver-related considerations for your portfolio that are new and different.
Make sure the stock is profitable with good fundamentals and a solid portfolio of mines with provable reserves. Top that off with good reviews from industry analysts, and you’re good to go!
Unless you’re eating hot dogs and ramen noodles every night, it’s not a life-changing amount. But what if the stock does strike gold (literally!) and it’s in the middle of a historic bull market? Then it could be a life-changing windfall. Imagine how many cases of hot dogs and ramen noodles you could get (all cash, of course)!
Typically, it would have a portfolio of mining stocks. As a mutual fund, the investment managers actively buy, sell, and hold a portfolio of various mining stocks. The managers choose the stocks using their selection criteria. Essentially, you choose the industry, and the managers of the fund choose all the individual securities. If the industry is doing well, then your mutual fund will do well, too.
In the late 1970s, for example, the most prominent gold mining mutual at the time earned more than 1,000 percent gain during that gold bull market that lasted from 1976 to January 1980 (when gold and silver had their highs), but the fund was among the biggest losers in the subsequent years. So, the lesson is clear: Choose your sector fund when that particular sector is doing well — in a bull market!
For 2020, gold- and silver-related mutual funds were among the big gainers. If the bull market continues in 2021 and beyond, the gains can continue, too.
When I say “quality,” I mean that your selection is a top grade (brilliant uncirculated or Mint State 60 or better) and that the other numismatic aspects of it (coin series, scarcity, professionally certified grade, and so on) are also excellent. Numismatic coins are beautiful and can easily grow in value, especially when a bull market in precious metals is sandwiched nicely between when you bought it and when you’re selling it.
Because leveraged ETFs are regularly rotating positions offering some combination of futures, options, and other derivatives right inside the portfolio, I like them because they don’t have the risk of expiring, which is the primary risk with options.
A good approach (to minimize risk) is to stagger your purchases of a leveraged ETF. Perhaps buy 50 shares in the beginning and buy some more shares in a week or so to take advantage of a pullback.
Besides simply finding them in your change much the same way you find other coins more valuable than their mere face value (such as Lincoln wheat cents dated 1909–1958), you can actually buy a quantity with most gold and silver bullion dealers.
Junk silver is based on silver content and no other consideration, so do price-shop this one. Ask for price quotes from multiple dealers, including any shipping and insurance charges, for the lowest cost.
During 2020, there are at least five new cryptocurrencies available with a nice twist — backed by precious metals. Those that are backed up by gold and silver offer some strength and advantages that aren’t present in the conventional cryptocurrencies.
Gold- (or silver-) backed cryptocurrencies have the dual benefit of being today’s digital means of transactions while being supported by metals with a 5,000-per-year track record, so yeah, I’d take this route if I was enamored with cryptocurrencies.
The transactions are done through a website account, and every week you can see how much of either (or both) metals you accumulated. If you need to sell a portion or all of your metal holdings, you can do it in a few clicks (or taps). Silver is purchased in ounce units, and the minimum for gold is 1 gram.
To find out more, go to their websites: