If you are thinking about putting some money into coins as an investment, then you might like to know whether you should buy gold or silver ones. It would be fair to say that investing in silver coins is not quite as common as investments made into gold ones. However, with this said it does not mean that putting your money into silver coins is not just as attractive. Many people choose to place some money into silver coins because they are relatively easy to trade should you wish to do so at any point in time although it is fair to say that of the two commodities, silver is the more volatile.
Gold coins offer you a sound investment but so do silver coins
Why Gold & Silver Coins Are Both Good Investments
The reason gold and silver coins are such a good investment is simply because they are small and therefore easy to trade. Add to this the demand for them; it makes it even more of an attractive investment option. However, you need to be cautious when investing in rare coins and any excessive premiums. The thing to bear in mind is that numismatics may have a high price but you may not be able to sell them should you need or want to later on in time. If you come across higher premiums which have to be added to a price, then consider this to be a bad signal and therefore avoid buying the coins whether they are silver or gold.
Silver Coins are a Good Investment
Silver coins are a good investment because of what is known as the analysis of their gold/silver ratio. This is used to establish both the relative as well as the absolute price of silver and gold. It is generally accepted the ratio is based on historical evidence. Silver is used in many industries including the camera industry which naturally means there's a demand which affects its value although heavy industrial use of silver does mean it can be more volatile than gold.
Silver coins are a good investment because silver is used in many industries
Deciding How Much to Invest in Gold & Silver Coins
You might like to consider investing in both gold and silver coins which not only allows you to hedge against inflation but it allows you to hedge your coin investment too. However, you should also decide whether to invest in more gold or more silver. Bear in mind that gold coins tend to be more expensive to buy whereas silver coins are more affordable, but as previously stated, silver is thought of as more “volatile” which means the price is prone to swing more than that of gold.
If you have a limited budget, you may want to buy more silver coins in the knowledge that silver boasts more growth potential because of the fact it's so much in demand in heavy industry. However, gold boasts being the universal reserve currency although it too does have some industrial use.
Keeping Tangible Investments as Safe as Possible
It is very important to make sure any investment you hold whether it's in gold or silver coins, are kept as safe as possible. It would be fair to say that all investments carry some degree of risk but you need to minimise this as much as you can. However, because coins are physical investments. There's an added risk which means they need to be stored in a secure place at all times.
Get Advice from the Experts
If you are unsure, you should discuss your plans with an expert before you commit to buy any gold or silver coins. A reputable dealer would be in a position to advise you which in turn means you can make a more informed decision and not end up with less sought after coins that are considered as having a lower value.
Conclusion
Whether you decide to invest in gold or silver coins, the most important thing you have to bear in mind is that not all coins whether gold or silver are a good investment and if you have any doubts, then you should seek the advice of a reputable and well established dealer. It is also very worthwhile keeping up to date with trends where precious metals are concerned which allows you to widen your knowledge and therefore improve your investment strategies. This in turn will positively impact your portfolio.