I see them as a bridge between the past and present of finance, serving as a hedge against inflation and currency devaluation. An essential part of any investment portfolio.

In this blog we look at how to invest in gold and silver while creating a diverse portfolio.

Table of Contents

• Gold and Silver Volatility
• Storing Gold and Silver
• Gold and Silver Strategic Investing
• Strategic Ways to Invest in Gold and Silver
  • Bars and Coins
  • ETFs
  • Mining Stocks
  • Cryptocurrency
• Gold and Silver Investing

 When I consider investing in gold and silver, I look at two paths: owning the metal outright, such as in coins or bars, or opting for non-physical investment products like ETFs, mining stocks, or even digital assets tethered to the price of these metals.

Gold and Silver Volatility

Investing in precious metals comes with a set of unique benefits. They’re seen as safe havens during economic turbulence. Yet, no investment is without its risks.

Prices of gold and silver can be volatile, influenced by global markets with the banking industry buying and selling to meet their obligations for capital. Indeed, Central Banks also take advantage of the ups and downs to buy or sell adding to the volatility.

An example of this is the Chinese government who announced they were buying gold. The price went up and up to new highs before China announced they had stopped buying. As soon as the price dropped they started buying again.

Storing Gold and Silver

Holding physical gold can bring concerns over storage and insurance.

If holding small quantities of gold and silver a safe will generally suffice but check with the requirements of your insurance company as specialist insurance may be needed.

Online companies will also offer storage for a small fee with the commodity being held in their vaults.

Pension companies are increasingly allowing gold and silver to be added schemes and will provide storage facilities.

The storage being used comes down to the quantity being stored.

Gold and Silver Strategic Investing

Strategic Investing is my whole philosophy for investing.

I advise adding some sparkle of gold or silver to an investment portfolio simply because they typically don’t move in the same direction as stocks and bonds. This why precious metals are considered a haven in difficult economies.

Spreading the investment risk into different asset classes, including commodities such as gold and silver is a prudent strategy.

Strategic Ways to Invest in Gold and Silver

You know the basics and the allure that gold and silver hold as part of a diverse investment portfolio. Now, let’s shift our focus to how you can invest in these precious metals. The strategy you choose should align with your investment goals, whether that’s long-term security, short-term gains, or simply the pleasure of owning tangible assets.

Bars and Coins

I am frequently asked is “do I buy bars or coins?”

It comes down to personal choice; the amount being purchased, and the exit strategy.

Personal Choice – which do you prefer? Many people like the variety of choices for coins. I have country currency coins as well as movie-related coins and historical landmark coins. Limited edition coins offer both the price of the metal and the collector value of the coin.

Purchase Amount – if buying large quantities of gold and silver, coin storage can be difficult and this is where bars make more sense. They are compact requiring less storage space.

Exit Strategy – how do you intend to sell your gold and silver holdings? If the intent is to sell small quantities then coins are probably easier to sell than bars. Know your exit strategy and it aid the decision on bars or coins.

ETFs

For a more fluid investment, exchange-traded funds (ETFs) provide exposure to the precious metals markets without the complications of storage.

When you invest in a gold or silver ETF, you’re buying shares that track the price of the metal. This form of investment is popular for its ease of trading and correlation to the precious metals market.

The benefit of using ETFs is the ability to buy or sell quickly.

Mining Stocks

Mining company stocks are a different beast. By investing in companies that mine gold or silver, you’re putting your money into the performance of those companies, not directly into the metals.

It’s essential to research and understand the mining sector or consult a financial advisor to grasp the full picture of these investments.

Cryptocurrency

Cryptocurrency backed by gold and silver introduces a modern twist to metal investments. These digital assets, tied to the value of a physical quantity of gold or silver, offer a novel approach to metal investment through blockchain, though they come with their own set of risks to be mindfully navigated.

Gold and Silver Investing

Ultimately, each method has its own set of advantages and considerations. Veer away from impulsive decisions. Carefully weigh the pros and cons, consult with a financial advisor, and make an informed choice.

My investment strategy is adverse to putting my eggs in one basket. Diversification is the backbone of my investment in gold and silver.

However, you should always prioritize the long-term stability of your portfolio, and remember that the key lies in understanding your investments and setting clear, achievable goals.

Karen Newton

Karen Newton is a Business and Wealth Strategist, 3x International Bestselling Author, and founder of Karen Newton International. She combines practical experience with AI-Powered Entrepreneurship to help smart entrepreneurs build online income, invest strategically, and create long-term wealth through business growth, investments and joint ventures.

karennewton.co.uk

Table of Contents

• Bitcoin Acceptance
• Bitcoin Halving
• How High Will Bitcoin Go?
• How Can You Invest?
• When Is The Best Time To Buy Bitcoin?
• Disclaimer
• Is it Too Late to Invest in Bitcoin?
•  

Bitcoin Acceptance

Bitcoin has been a part of many people’s lives since its launch in 2009. But it wasn’t until the approval of ETFs by the SEC (US Securities Exchange Commission) that the finance industry accepted Bitcoin as an asset.

With the US the first country to accept Bitcoin there is a flurry of activity around the world with other countries trying to get ETFs approved.

This global demand for Bitcoin is part of the reason for the hike in price.

Bitcoin Halving

Bitcoin has a unique system to help increase value called the halving.

How the halving works is that all data related to Bitcoin is recorded on blocks of data. Once 210,000 blocks have been filled it triggers a halving of the amount of Bitcoin that can be mined and the amount miners are paid.

It has been estimated that the next halving will happen in April 2024. The current mining of 900 Bitcoins per day will drop to 450 Bitcoins.

The halving creates scarcity increasing value at a time of high demand due to the number of institutional investors coming into the Bitcoin market.

How High Will Bitcoin Go?

This is a question being asked by many ordinary investors with the answer being how long is a piece of string.

In reality, no one knows how high Bitcoin will go. The only thing known for sure is that Bitcoin is finite. Once it reaches the maximum amount to be mined no more will be available.

If we look at other assets – for instance – gold. When demand and price are high, gold miners will mine more gold to meet demand.

However, because bitcoin is finite and governed by the halving, there is no more bitcoin to be mined so Economics 101, supply and demand, suggests the price of bitcoin will go higher.

There are varying calculations on price with economists suggesting that by the end of 2024, it will be worth anything from $100k to $400k.

Yet most of them agree that it will be worth $1m by 2030.

It has been estimated that 99% of all Bitcoin will be mined by 2034. It will take 100 years to mine the remaining 1%.

How Can You Invest?

It is quite easy to invest in Bitcoin through online apps.

For myself, I use crypto.com and have a set amount each week that goes into the app.

Bitcoin allows people to buy very small amounts.

It is possible to buy £10 worth of Bitcoin in each transaction even though, the price is around $65k for a Bitcoin small investors are certainly welcome.

When Is The Best Time To Buy Bitcoin?

Bitcoin is a volatile investment. If you worry about losing money don’t invest.

If you are more flexible and willing to take a risk the best time is now.

Disclaimer

This article is not intended as financial advice. You should always check with your financial advisor.

Karen has been an investor for 40 years and has a wide range of experience with many investment strategies and financial markets. What Karen invests in is not suitable for everyone. Those who do invest may have different results and may lose their money.

Is it Too Late to Invest in Bitcoin?

No, I believe that Bitcoin still offers great investment opportunities for both small and larger investors. Be aware that this is not a get rich investment strategy any investment should be for the long term.

With institutional investors now in the Bitcoin market, Bitcoin is likely to be extremely volatile with big swings in price. Only invest what you can afford to lose.

Bitcoin investing will be around for many years to come and with such a low entry price for purchasing a share of a Bitcoin will offer plenty of opportunities in the future.

Karen Newton

Karen Newton is a Business and Wealth Strategist, 3x International Bestselling Author, and founder of Karen Newton International. She combines practical experience with AI-Powered Entrepreneurship to help smart entrepreneurs build online income, invest strategically, and create long-term wealth through business growth, investments and joint ventures.

karennewton.co.uk