Categories
Gold & Silver

Gold Investment Companies

In this article we discuss different gold investment companies and provide our gold price forecast for 2021 and beyond. We’ll also look at why gold may be a solid addition to your investment portfolio based on political and economic changes today.

Gold Investment Companies to Watch

Many Investors Believe that Gold Investment Companies Will Perform Well in the Future

The gold mine stock industry has been overlooked for many years. Moreover, precious metals have been unpopular and considered irrelevant. Since the 1990s, investors have been advising others to invest in stocks for pensions and 401(k) investments. In short, this advice was largely correct. As a result, Wall Street has hit all-time price levels in the past 20+ years. However, things may have shifted in 2020. Consequently, could this be the time to invest in gold investment companies?

Millionaire investor Doug Casey has been a proponent of owning gold investment companies for decades. In fact, he has been investing in gold mines for most of his life. During a recent interview, Casey discussed the political turmoil happening in the United States and rising gold prices.

“Look, there are quality small gold-mining companies run by really good, serially successful people that are geologists and mining engineers. That’s the kind of stuff you should buy. Buying major miners like Newmont and Barrick would also be profitable. But better to buy the next tier down — smaller, leveraged, growing. When these smaller gold stocks run, they can go 10 to 1 easily; some of them go 100 to 1. I’ve personally owned gold stocks that have gone 1,000 to 1… within just one gold cycle. So, this is the place to be, assuming I’m right about gold. I think I am.” -Doug Casey, The International Man

Accordingly, here are some gold investment companies that may be worth considering:

Barrick Gold (GOLD)     

One of the world’s largest gold mining companies, Barrick mines gold and copper. They operate in 13 countries. Barrick has been popular lately because of its ability to generate a cash flow resulting from mining.

Warren Buffet recently invested millions of dollars in Barrick Gold Stocks. It’s interesting to note that Mr. Buffet has avoided gold for many years. Apparently, he has reversed course and believes investing in gold stocks is important.

Franco-Nevada (FNV)    

A leading gold-focused royalty and streaming company. It operates from Toronto, Canada. Founded in 2007, they provide investors with exposure to the gold investment companies while limiting risk in the investment.

SPDR Gold Trust (GLD)

An ETF that holds physical gold. SPDR is billed as a cost-effective way for investors to profit from the gold bullion market with limited exposure to risk. It has been in operation since at least 2010. The fund also provided greater liquidity than holding physical precious metals.

Newmont Mining (NEM):

One of the world’s most popular gold investment companies. It claims to have the largest gold reserves in the world. It operates in 9 countries, including the United States.

Rio Tinto (RIO)

It is one of the largest international miners, operating in 36 countries worldwide. It mines iron ore, aluminum, copper, diamonds, titanium, borates and gold.

Kirkland Lake Gold (KL)

A much smaller operator, Kirkland Lake operates in Canada and Australia. Although Kirkland Lake is smaller, it boasts having no corporate debt and holds cash on hand.

Market Bubbles Historically Destroy Markets and Smaller Investors

In 2000, Many Retirees Lost 50% of Their Investments When the Dot Com Bubble Burst

The Dot Com Bubble that began in March 2000 caused the S&P 500 Index to drop almost 50%. This bubble bursting lasted until 2007. That means that if you were planning to retire in 2000, and many of your investments were locked into a Wall Street 401(k) that fell 50%, you couldn’t retire. Many people at this time were forced to return to work because they couldn’t afford to retire.

Currently, Wall Street stock prices are at record-breaking levels. Prices are high, interest rates are low, and everyone is cheering the mania. The question is whether markets are overpriced in a bubble.

Current Economic Crisis in the United States

According to Experian data, consumer debt has grown to around $14 Trillion in 2019. Debt for Americans has been increasing steadily since at least 2009. This debt includes things like credit cards, home loans, vehicle loans and student loans.

In addition, Americans are struggling financially right now because of COVID-19 shutdowns. Many people live paycheck-to-paycheck and have no savings. As a result, a sudden loss of employment caused them to face economic ruin or bankruptcy. Unemployment rates are estimated to be around 10-20%. This is the highest unemployment rate seen in decades.

Debt, Mortgages and Home Foreclosures in the United States

  • Total Debt to GDP for the United states is over 150%
  • The Federal Reserve currently owns approximately 30% of all mortgages in the U.S. today (over $2 Trillion)
  • US National Debt is now over $26 Trillion
  • Home foreclosures are beginning to increase

Alarming Trends at the Federal Reserve and Debt-to-GDP Ratio

Two alarming trends are that the debt to GDP ratio is at 150% and that the Federal Reserve Bank owns 30% of US mortgage securities. First, most experts agree that when the debt-to-GDP ratio climbs higher than 100%, you are in the economic danger zone. Historically, high debt-to-GDP ratios have ended badly.

Unfortunately, this is bad news for the United States economy. As a result, people’s investments and retirements could be badly damaged. So, what does an investor do to minimize risk and survive the upcoming economic depression? Let’s look at gold.

Gold Has a Limited Supply and Growing Demand

The Supply of Gold Is Finite; Demand for Gold Includes Industry, Jewelry and Money

There is a limited supply of gold on Earth. Moreover, gold miners throughout the world have a finite quantity of gold available for mining. At some point, the amount of gold removed from mines will diminish and become zero.

At the same time, gold demand continues to grow. For instance, gold has many uses in technology, jewelry, medicine and money. Jewelry made of gold has been popular for millennia. In addition, gold continues to grow in demand and popularity, especially in Asia. In fact, 70-80% of gold mined today goes to create jewelry.

Also, there are many industrial uses for gold including electronics, aerospace and medicine. For example, gold is a very efficient conductor of electricity. This property is utilized in many electronic components such as cell phones and computers. In addition, gold is a superior element to work with in dentistry. More important, gold is non-reactive, malleable and has anti-bacterial properties.

Finally, gold coins remain in demand all over the world. Coins made of gold have been used for hundreds or thousands of years. They are easily recognizable and highly desirable. More importantly, gold coins have withstood the test of time and continue to be sought after in the 21st century. Real money is sound money. Obviously, gold is real, sound money. Clearly, gold investment companies can be a great addition to an investment portfolio.

Five Reasons to Buy Gold:

  1. Gold is a store of value. National currencies (even the U.S. Dollar) come and go. But Gold has been around for thousands of years as real money. 
  2. It is a liquid asset. Gold (and other metals) can be easily bought and sold in most large cities around the world. It can be exchanged for most currencies this way.
  3. Gold is a tangible asset. You can hold gold coins in your hand or put them in your safe. No waiting for the bank to open to get them. No worrying about destruction by fire or a hacker.
  4. It is a hedge against inflation. Gold tends to thrive during a crisis. Investors tend to jump into gold when stocks go lower.
  5. Gold is private. No other asset offers privacy like a gold coin. A transaction in gold between you and another person is truly a private affair.

Gold in Your Portfolio

It is common to hold anywhere from 5-10% of an investment portfolio in gold investment companies. In fact, there are some international investment portfolios known to hold as much as 30% of assets in both physical gold and gold investment companies.

History of Gold

The use of gold as a commodity and as money dates back at least 4,000-6,000 years. Approximately 4,500 years ago, the Mesopotamians made jewelry from gold. However, it’s believed that gold was being used even prior to this era. For example, gold was used as a construction material to decorate walls, burial sites and masks of cultures such as the Egyptians, the Greeks and the Romans.

Gold for Trading and Exchange

It is believed that around 1,500 B.C. in Egypt, gold was being used as the official currency of exchange for merchants and traders. Shortly thereafter, gold took its place as the primary trading currency throughout the world. Mining for gold became a major industry world-wide. Coins made of gold were produced and distributed throughout Europe and Asia.

Gold Standard Dollars

Fast forward to the year 1792. The United States passed the Coinage Act which dictates that silver and gold will be used as the standard for valuing currency. The Act defined the U.S. Dollar as equivalent to 24.75 grams of gold and 371.25 grams of silver. The paper currency printed in the United States was officially backed and redeemable in silver and gold.

Later, in 1968, U.S. Currency was no longer backed by gold. Then in 1971, the U.S. Dollar is devalued in price and the program of conversion of dollars back to gold was terminated. In other words, U.S. Dollars were no longer backed by gold.

The Beauty and Utility of Gold

Shiny gold coins and jewelry have been considered beautiful for centuries. Women and men have donned gold jewelry for as long as we have kept track of history. From a physical perspective, gold is malleable and easily altered to make jewelry, coins or even thin sheets. Scientifically, gold is non-reactive and non-corrosive, both of which are highly desirable characteristics. Gold is even safe to use in the human body. For example, dentists have used gold for years to repair teeth.

How to Buy Gold

Buy Gold as Physical Coins/Bars or Gold investment companies

Investing in gold has never been easier. Gold merchants and brokerage firms are competing for your business online. If you want to purchase physical gold, you can do this at your local coin shop.

Another option for purchasing gold is buying online. Buying from a website has become more secure in recent years, but you must do diligent research to verify the buyer. Only buy from established suppliers that have been around for a long time and have positive feedback. Preferably you can get a recommendation from a friend.

Finally, buying gold stocks is just as easy as buying stock in GM or Amazon. Many online brokerage firms offer the ability to buy these shares for a reasonable fee.

Future of Gold and Gold Investment Companies

Unemployment, Debt, 0% Interest and Fed Money Printing Drive Gold Prices Higher

We at Piggy Bank Coins believe that gold (and silver) and gold investment companies have a bright future. Holding a real money asset such as gold and gold investment companies will always be highly regarded by investors. In addition, having gold in your investment portfolio is considered by many to be a safe and secure option. It’s important to grow your wealth while minimizing risk. Specifically, gold is a real, tangible money that can be a store of wealth for a lifetime.

We believe the gold price forecast indicates that demand will continue to grow and that investors should continue to hold gold and silver. With the political and economic instability created in the United States, gold prices will likely increase. For instance, investors will continue to move toward safe harbors. Make no mistake, gold is the safe harbor.

Second, since 1944 the US Dollar has operated as the world reserve currency. However, the US economy appears to be faltering with high unemployment, high national debt, near-zero percent interest rates and inflation from Federal Reserve money printing. As a result, investors will be looking for something safe to hold on to, and precious metals may be that rock.

The Gold Price Forecast Predictions

Four Gold Price Predictions: $2,300, $3,000-$8,000, $15,000 and $26,000.

Goldman Sachs raised its gold price forecast in July 2020. The investing firm believes that gold will hit $2,300 per ounce as investors flee other falling price investments such as real estate.

According to Jeff Clark, Senior Analyst at GoldSilver gold has a 95% likelihood of going higher in 2021. In addition, he is predicting $3,000-$8,000 gold in the next 5 years.

In an interview with Kitco News in mid-2020, Investor Jim Rickards predicts that gold will rise to $15,000 per ounce before 2025. He bases his prediction on inflationary forces.

In the same interview with Jim Rickards, Investor Peter Schiff predicted gold will rise as high as $26,000 per ounce. He bases his prediction on extrapolating DOW Jones trading values in relation to gold in 1932 and currently.

Learn More about Gold and Silver

Get a copy of the “Free Gold and Silver Buyer’s Guide” today. It’s free and has some great information in it about investing.

If you want to learn about the history of money, check out Mike Maloney’s free “Hidden Secrets of Money” video series. It’s a gold mine of information that can help you better understand money and where the world stands today financially. Highly recommended!

Read More:

Best Silver Coins to Buy

Gold and Silver Exchange

Why is Silver So Cheap?

Best Gold Coins to Buy

Buy Gold Bullion

Gold Price Forecast

Platinum Vs. Silver

Silver Mining Stocks

Buy Junk Silver

The Cheapest Way to Buy Silver

Disclaimer: It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.

Categories
Gold & Silver

Best Canadian Silver Stocks

We will discuss the best Canadian silver stocks and provide our silver price forecast for 2021 and beyond. We will also look at why silver stocks and other forms of silver should be in your investment portfolio.

Silver Stocks to Watch

Many Investors Believe that Silver Stocks Will Perform Well in the Future

The best Canadian silver stocks have been overlooked for many years by investors. Moreover, precious metals have been unpopular and considered irrelevant. Since the 1990s, investors advisors have been recommending equities such as blue chip and now tech stocks for pensions and 401(k) investments. In short, this advice was largely correct. As a result, Wall Street has hit all-time price levels in the past 20+ years. However, things may have shifted in 2020. Consequently, could this be the time to invest in silver stocks?

Millionaire investor Doug Casey has been a proponent of owning the best Canadian silver stocks for decades. In fact, he has been investing in gold and silver mines for most of his life. During a recent interview, Casey discussed the political turmoil happening in the United States and rising gold prices.

“Look, there are quality small gold-mining companies run by really good, serially successful people that are geologists and mining engineers. That’s the kind of stuff you should buy. Buying major miners like Newmont and Barrick would also be profitable. But better to buy the next tier down — smaller, leveraged, growing. When these smaller gold stocks run, they can go 10 to 1 easily; some of them go 100 to 1. I’ve personally owned gold stocks that have gone 1,000 to 1… within just one gold cycle. So, this is the place to be, assuming I’m right about gold. I think I am.” -Doug Casey, The International Man

If you are bullish on gold stocks, then you should be bullish on silver stocks as well. In fact, many gold mining companies also mine silver. Accordingly, here are some of the best Canadian silver stocks that may be worth considering:

Franco-Nevada (FNV)    

FNV is a leading gold and silver royalty and streaming company. It operates from Toronto, Canada. Founded in 2007, they provide investors with exposure to the gold and silver stocks while limiting risk in the investment. This company has historically done well during economic downturns and is positioned to reap the benefits of increases in silver prices.

Pan American Silver Corporation (PAAS CFD)     

One of the world’s largest silver mining companies, Pan American mines gold and silver. They are considered one of the leaders in the silver mining industry. Their silver stock price has performed well in 2020 and the expectation among many investors is that it will continue to grow.

First Majestic Silver Corporation (AG)   

First Majestic is an international silver miner based in Canada. They also have mining operations in Mexico. The pandemic of 2020 led to bottlenecks in silver production, causing share prices to decrease recently. However, many analysts believe the company is positioned to make a strong recovery.

Wheaton Precious Metals (WPM)

Wheaton is considered a leader in traded stocks in the United States. It is the world’s largest silver streaming company. Wheaton has contracts in gold, silver and palladium. Its debt level is considered manageable and the company maintains a solid cash flow. This Canadian silver stocks company is headquartered in Vancouver, Canada.

canadian silver stocks

SilverCrest Metals (SILV)

This is a junior silver stock and mining company that operates in Mexico. This one is probably considered riskier than the others detailed in this report. In fact, SilverCrest has only been listed on silver markets since March of 2018. However, it has shown continual price increases during this time period and may have future promise as an investment. This Canadian silver stocks company is headquartered in Vancouver, Canada.

MAG Silver (MAG)

This is a smaller silver mining company that still trades on the NYSE. MAG has historically been a stable stock to own and has been increasing in price throughout much of 2020. Mining operations in Mexico are promising with low extraction costs and a lot of upside potential. This Canadian silver stocks company is headquartered in Vancouver, Canada.

Market Bubbles Historically Destroy Markets and Smaller Investors

In 2000, Many Retirees Lost 50% of Their Investments When the Dot Com Bubble Burst

The Dot Com Bubble that began in March 2000 caused the S&P 500 Index to drop almost 50%. This bubble bursting lasted until 2007. That means that if you were planning to retire in 2000, and many of your investments were locked into a Wall Street 401(k) that fell 50%, you couldn’t retire. Many people at this time were forced to return to work because they couldn’t afford to retire.

Currently, Wall Street stock prices are at record-breaking levels. In late 2020, the Dow Industrial Average rose to an all-time high of 30,000. Prices are high, interest rates are low, and everyone is cheering the mania. The question is whether markets are overpriced in a bubble. Smart investors will see this as the time to get off the stock roller coaster and move to safer bets like some of the best Canadian silver stocks.

Current Pandemic and Subsequent Economic Crisis in the United States

According to Experian data, consumer debt has grown to around $14 Trillion in 2019. Debt for Americans has been increasing steadily since at least 2009. This debt includes things like credit cards, home loans, vehicle loans and student loans.

In addition, Americans are struggling financially right now because of COVID-19 shutdowns. Many people live paycheck-to-paycheck and have no savings. As a result, a sudden loss of employment caused them to face economic ruin or bankruptcy. Unemployment rates are estimated to be around 10-20%. This is the highest unemployment rate seen in decades.

Debt, Mortgages and Home Foreclosures in the United States

  • Total Debt to GDP for the United states is over 150%
  • The Federal Reserve currently owns approximately 30% of all mortgages in the U.S. today (over $2 Trillion)
  • US National Debt is now over $26 Trillion
  • Home foreclosures are beginning to increase

Alarming Trends at the Federal Reserve and Debt-to-GDP Ratio

Two alarming trends are that the debt to GDP ratio is at 150% and that the Federal Reserve Bank owns 30% of US mortgage securities. First, most experts agree that when the debt-to-GDP ratio climbs higher than 100%, you are in the economic danger zone. Historically, high debt-to-GDP ratios have ended badly.

Unfortunately, this is bad news for the United States economy. As a result, people’s investments and retirements could be badly damaged. So, what does an investor do to minimize risk and survive the upcoming economic depression? Let’s look at silver and some of the best Canadian silver stocks.

Many investors recommend including precious metals like silver in your investment portfolio. It’s important for everyone to own silver. Here we’ll discuss the history of silver, why everyone should own silver, how to buy it and the best silver coins to own. Commodities such as silver (and gold) have stood the test of time. In fact, silver has been money for thousands of years. So, it makes sense to find the cheapest way to buy silver.

History of Silver

For thousands of years, silver bars and coins have been used as currency. Silver has the properties of money, which are portability, divisibility and tangibility. In fact, money was backed by silver and gold until 1933. Read more about the “US Dollar History: How the Dollar Became the World Reserve Currency” to learn more.

Why Everyone Should Own Best Canadian Silver Stocks

Silver is real money: It is Tangible, Secure, Private and Maintains Its Value Against Inflation

Silver is real money, which is tangible and is backed by something of value. You can hold it in your hand. Silver cannot be taken from a bank account. Hackers cannot steal silver from your computer, like Bitcoin. Finally, silver is kept safely and privately in a secure location. And the best Canadian silver stocks are just as secure as regular tech or blue-chip stocks like Apple or Microsoft.

Real money is resistant to inflationary forces and has a value that is based on demand. First, silver has a long history of maintaining its value against the currency of the day. No matter what the value of a dollar is, one ounce of silver is always equal in value to one ounce of silver. In addition, silver maintains a special balance with the value of gold, which fluctuates.

Physical Silver Coins are Affordable and Practical

Don’t have much money to spend? Purchasing silver, one-ounce coins, such as the American Silver Eagle, is one of the cheapest ways to buy silver. Currently, silver one-ounce coins sell for approximately $25. Silver coins easily fit in your pocket or purse. They can be used as gifts or exchanged for cash.

Silver Has a Limited Supply and Growing Demand

The Supply of Silver Is Finite; Demand for Silver Includes Industry, Jewelry and Money

There is a limited supply of silver on Earth. Silver Miners throughout the world have a finite quantity of silver available for mining. At some point, the amount of silver removed from mines will diminish and become zero. This is part of what creates the value and profitability for silver stocks.

At the same time, silver demand continues to grow. Silver has many uses in technology, jewelry, medicine and money. Jewelry made of silver has been popular for millennia, and continues to grow in demand. There are many industrial uses for silver including batteries, solar panels and electronics. In fact, more than 50% of silver mined today goes to industrial use. Of course, silver coins remain in demand all over the world.

One other important point about silver is that it has traditionally outperformed gold in bull markets. For example, from 1970 to 1980, silver increased in price (compared to US Dollar) by over 3,000%. Many investors believe that the best Canadian silver stocks will continue to increase in value over the next few years.

Real money is sound money. Silver is real, sound money.

How to Buy Silver

Buy Silver as Physical Coins/Bars or Goldmine Stocks

Investing in silver has never been easier. Silver merchants and brokerage firms are competing for your business online. If you want to purchase physical silver or gold, you can do this at your local coin shop.

Another option for purchasing silver is buying online. Buying from a website has become more secure in recent years, but you must do diligent research to verify the buyer. Only buy from established suppliers that have been around for a long time and have positive feedback. Preferably you can get a recommendation from a friend.

Finally, buying the best Canadian silver stocks is just as easy as buying stock in GM or Amazon. Many online brokerage firms offer the ability to buy silver stocks for a reasonable fee.

Silver Coin Dealers and Coin Shops

There are several methods for finding the cheapest way to buy silver coins and bars. The first option is to search for reputable coin dealers near where you live. Ask friends or look online for reviews of the local shops that buy and sell silver coins. Next, visit several coin dealers or coin shops in your area and get to know who they are and what they offer. Find a dealer who you enjoy dealing with and who is knowledgeable about silver and silver coins. Ask questions, like how they determine silver spot price. In addition, determine what fees apply. Get comfortable with whom you are dealing and get to know them.

Best Silver Coins to Buy

Silver Coins Recognized Around the World Include: Silver Eagle, Maple Leaf, Philharmonic, Panda and Britannia

Now that you understand the history and significance of silver and why buying real silver coins is important, let’s explore the best silver coins to buy. This is the cheapest way to buy silver. It’s also one of the easiest ways to stock up on silver.

There are five important one-ounce silver coins that are important to buy. The five most highly regarded silver coins are:

  • American Silver Eagle
  • Canadian Maple Leaf
  • Austrian Philharmonic
  • Chinese Silver Panda
  • British Silver Britannia

These are the best silver coins to buy because they are recognized and trusted around the world. These coins are minted with precision and integrity. The minting is overseen and secured by the respective governments who are involved. When you travel around the world, all of these coins are well-known and recognized universally.  Buying any one of these is considered to be a relatively safe bet.

Best Silver Bars to Buy

If you have more money to buy silver and don’t want to have stacks of coins lying around, then buying silver bullion or silver bars is an option. Silver bars have a few options that make them desirable when compared to silver coins. Silver bars take up less storage space than a comparable Dollar value of coins. In addition, bullion bars have lower premiums compared to silver coins. And silver bars come in varying sizes from one gram up to 400 ounces.

Smaller bars are recommended for several reasons. Large silver bars are not very divisible. For example, how do you pay for dinner with a 400-ounce silver bar (currently valued around $10,000)? In addition, larger silver bars require assay when exchanging and there is also a higher rate of counterfeiting with large bullion bars.

What the Future Holds for Silver

We at Piggy Bank Coins believe that silver has a bright future. Holding a tangible asset such as silver will always be highly regarded by investors. Having the best Canadian silver stocks in your investment portfolio is considered by many to be a safe and secure option. It’s important to grow your wealth, but retaining a portion of your wealth is critical too. Silver is a real, tangible money that can be a store of wealth for a lifetime. We believe demand will continue to grow and that investors should continue to hold the best Canadian silver stocks.

Many market watchers predict that gold and silver stocks will trend much higher over the next few years for several reasons. First, analysts believe that demand for silver and gold will continue to increase for uses in technology, jewelry, money and various other uses. Second, many economists are concerned about world-wide debt rates increasing, which can lead to inflation. As economies struggle with increasing inflation, silver tends to increase in price relative to paper currencies. As a result, many smart investors move money to silver and gold portfolios.

Silver Price Predictions in 2021

Most forecasters foresee silver climbing to around $30 per ounce in 2021. This is a modest increase that most expect. However, there are many more market experts who see prices going much higher into the $30-40 range. Although it is impossible to predict the future and know exact prices, it seems clear that silver is heading higher in the foreseeable future. And if hyperinflation ever hits the US Dollar, the best Canadian silver stocks and the silver price will reach hundreds or thousands of dollars per ounce.

Get a copy of the “Free Gold and Silver Buyer’s Guide” today. It’s free and has some great information in it about investing.

If you want to learn about the history of money, check out Mike Maloney’s free “Hidden Secrets of Money” video series. It’s a silver of information that can help you better understand money and where the world stands today financially. Highly recommended!

Read More:

Best Silver Coins to Buy

Gold Bullion

Best Gold Coins to Buy

Goldmine Stocks

Value Investing Books

How Much Savings You Should Have at 40

Wealth Building Cornerstones

Real Estate Market Predictions

Why Saving Money is Important

Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.

Categories
Gold & Silver

Best Gold Bars To Buy

Our picks of the best gold bars to buy, five reasons to buy gold bars, the history of gold and where to find gold dealers.

Wondering where the best gold bars to buy are? Find out the answers to your gold questions, such as:

  • Why you should buy gold bars and coins
  • History of gold
  • Best gold coins to buy
  • Best gold bars to buy
  • Gold coin dealers and coin shops

Why Buy Gold Bars?

First, buying gold bars means you are buying something that you can hold in your hand. This may not seem important to you now, but it may be critical in the future. Cash can be destroyed and loses value. In addition, stocks go up and down in price. In addition, Banks and businesses fail every day. Living things, such as livestock and farm crops die. However, threats such as these do not impact gold.

Five Reasons to Buy Gold Bars:

  1. Store of value. National currencies (even the U.S. Dollar) come and go. But Gold has been around for thousands of years as real money. 
  2. Liquid asset. Large cities throughout the world trade gold and silver on a daily basis.
  3. Tangible asset. You can hold gold coins in your hand or put them in your safe. No waiting for the bank to open to get them. No worrying about destruction by fire or a hacker.
  4. It is a hedge against inflation. Silver tends to thrive during a crisis. Investors tend to jump into silver when stocks go lower.
  5. Privacy. No other asset offers privacy like a gold coin. A transaction in gold between you and another person is truly a private affair.

Gold in Your Portfolio

It is common to hold anywhere from 5-10% of your investment portfolio in gold. In fact, some very larger international portfolios hold approximately 30% of their assets in gold.

History of Gold

Circa around 4,000-6,000 years ago, gold was first used as a commodity and as a money . Then, approximately 4,500 years ago, the people of Mesopotamia made jewelry from gold. Some historians believe that the use of gold is much older. Cultures such as the Egyptians used gold for purposes such as to decorate walls, burial sites and masks of cultures such as the Egyptians, the Greeks and the Romans.

Gold for Trading and Exchange

Circa 1500 B.C., gold was the official currency of exchange for merchants and traders in Egypt. Shortly thereafter, gold began to take hold as the superior trading currency throughout the world. Mining for gold becomes a major industry world-wide. Europe and Asia begin using gold coins for payment.

Gold Standard Dollars

Fast forward to the birth of the United States. First, in 1792, the United States passed the Coinage Act.The Coinage Act requires that silver and gold are the new standard for currency valuation. The Act defines the U.S. Dollar as equivalent to 24.75 grams of gold and 371.25 grams of silver. Next, the paper currency printed in the United States was officially backed and redeemable in silver and gold.

Once again, fast forward again, approximately 180 years. First, in 1968, the U.S. Government removed gold from backing the Dollar. Then in 1971, the price of the U.S. Dollar was devalued. Then, US Currency was no longer convertible to gold. As a result, gold does not back the American Dollar any longer.

The Beauty and Utility of Gold

Humans have long believed that gold jewelry and coins were things of beauty. For instance, women and men have donned gold jewelry for as long as we have kept track of history. Moreover, from a physical perspective, gold is malleable and easily altered to make jewelry, coins or even thin gold sheets. Scientifically, gold is non-reactive and non-corrosive, both of which are highly desirable characteristics. Gold is even safe to use in the human body. For example, dentists have used gold for years to repair teeth. In conclusion, gold has many uses.

Best Gold Coins to Buy

Best Gold Coins to Buy

Now that you understand the history and significance of gold and why buying real gold coins is important, let’s explore the best gold bars to buy.

There are four important one-ounce gold coins that are important to buy. The four recommended gold coins are:

  • American Eagles
  • South African Krugerrands 
  • Canadian Maples
  • Austrian Philharmonic

The aforementioned coins are the finest gold coins available. The respected governments of each country oversee the minting and distribution of these fine gold coins. All four of these coins are well-known and recognized world-wide. As a result, gold coin buyers and sellers hold these four coins in high regard.

Best Gold Bars to Buy

If you have more money to buy gold and don’t want to have stacks of coins lying around, then buying gold bullion or gold bars is an option. Gold bars have a few options that make them desirable when compared to gold coins. Gold bars take up less storage space than a comparable Dollar value of coins. In addition, bullion bars have lower premiums compared to gold coins. And gold bars come in varying sizes from one gram up to 400 ounces.

Smaller to medium size bars are recommended for several reasons. Large gold bars are not very divisible. For example, how do you pay for dinner with a 400-ounce gold bar (currently valued around $800,000)? In addition, larger gold bars require assay when exchanging and there is also a higher rate of counterfeiting with large bullion bars.

Gold Coin Dealers and Coin Shops

When buying and selling gold coins, you have several options. The first option is to search for reputable coin dealers near where you live. To start, ask friends or look online for reviews of the local shops that buy and sell gold coins. Next, visit several coin dealers or coin shops in your area and get to know who they are and what they offer. Find a dealer who you enjoy dealing with and who is knowledgeable about gold and silver coins. Finally, ask questions, like how they determine gold spot price or how their fees are determined. Get comfortable with whom you are dealing and get to know them.

Wrap Up: Best Gold Bars to Buy

Hopefully you now understand the reasons investors buy gold coins and bullion. In addition, you may now have a better understanding of the best gold bars to buy and why to buy gold. Gold has stood the test of time and will be around much longer. It is the oldest, real money you can own.

Want to learn more about how to invest? Check out The Best Investing Books of All Time.

Read More:

Best Silver Coins to Buy

The Cheapest Way to Buy Silver

Wealth Building Cornerstones

Best Investing Books of All Time

How to Become a Millionaire from Nothing

How Much Savings You Should Have at 40

Disclaimer:

It is important to note that Piggy Bank Coins does not provide financial advice. We don’t endorse or recommend any financial investments. Instead, we provide information for educational purposes to those seeking knowledge regarding personal finance. However, in the spirit of transparency, note that the author is an investor in cryptocurrencies, precious metals and some equities.

In addition, The Federal Trade Commission (FTC) requires that Piggy Bank Coins disclose to readers that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. Moreover, we try our best to keep things fair and balanced, in order to help you make the best choice for you.