Best way to invest in Gold and Silver - Satori Traders

Best way to invest in Gold and Silver
For more information, visit our website: https://satoritraders.com/precious-metals/gold/ira/way
Investors use Precious metals to store value, hedge against economic disturbances, and diversify
their Portfolios. Held long enough, these Investments may also appreciate in price, producing
some hefty profits when sold.
Gold and Silver are the most common Precious metal
Investments. The history of these metals goes back
thousands of years and they come in all shapes, sizes,
and forms: bars, Coins, Stocks, ETFs, Trusts, even
Cryptocurrencies.
We believe the best way to invest in Gold and Silver is to
have a little bit on hand and then trade some of your
paper retirement assets (Stocks, Bonds, Mutual funds)
for the security of physical metal.
You can purchase physical metal at your local Coin shop and this is the method that we prefer.
Develop a personal relationship with the store and they will take good care of you. You can also
purchase Precious metals online from Bullion dealers like APMEX or JM Bullion.

How to buy Gold Bullion
Government-minted Gold and Silver Bullion comes in two main forms: bars and Coins. You can
purchase them through authorized dealers with the peace of mind that they meet specific purity
standards (i.e., you know you’re getting what you paid for). Purchasing Bullion directly and taking
possession of it means you can physically touch your Investment, which some investors prefer.
To start, sellers price Bullion higher than the
metal’s spot price. These premiums cover mining,
minting, and distribution costs. Once the Silver and
Gold is in your hands, you’ll have to consider (and
pay for) proper storage and insurance costs to
secure your assets against loss and theft. When
it’s time to sell, you’ll find that buyers expect a
discount to spot price and that some types of
Bullion are less liquid than others.
Then there are tax considerations. The IRS taxes most Precious metals at the collectibles tax rate,
meaning you’ll pay up to 28% of your capital gains to the government.

Physical Gold Investment
Government-minted Bullion is usually eligible for IRA Investments which means you can use your
tax-advantaged retirement savings to invest in physical Gold and Silver. With an IRA you can avoid
the 28% tax rate and know that your metals are securely stored with an IRS-approved Custodian.
PROS
● Tangible ownership of physical assets
● Available in a range of types, weights, and purities
● Bullion is highly liquid
CONS
● Dealers charge markups for purchase and then
repurchase at a discount
● Storage and insurance costs
● Taxed at collectible rate (unless held in an IRA)
● Physical metals don’t generate revenue

Contact Details:
Satori Traders LLC
4930 Del Mar Ave. #106
San Diego, CA 92107
Phone: (619) 320-1900
Website: https://satoritraders.com/precious-metals/gold/ira/way
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Best way to invest in Gold and Silver

Bullion bars and Coins
You can buy Gold Bullion bars in varying weights and sizes ranging from a single gram up to a 400-
ounce brick. Silver Bullion bars typically start at one ounce and range up to 1,000 ounces.
The exact price of Bullion bars – and whether you can
include them in your IRA – depends on the specific
metal, weight, purity, and mint of origin.
Bullion Coins provide another popular way to invest in
Gold and Silver.
You can divide Coins into two basic groups: collectors’
Coins (“Numismatics”) and IRS-approved Coins. Both
types of Coins come with the security of mind that
you’re getting a certain purity, though their prices may
differ substantially.
Collector’s Coins carry additional value on top of the price of the included metal. Some of the highest-
priced Coins were minted prior to the U.S. government removing Gold Coins from circulation in the
1930s. These Coins, typically referred to as “pre-1933 Gold Coins”, can attribute half or even more of
their price to their current desirability as a collectible item.

Bullion rounds
Unlike government-minted Bullion, metal rounds are privately-minted metal assets that aren’t
considered legal tender. They come in several metal types, including Gold, Silver, Platinum,
Palladium, and even Rhodium (the 5th Precious metal). Most rounds weigh between 1 and 5
troy ounces and are priced by metal weight and purity. Not all rounds are IRA-eligible.
PROS
● Several beautiful designs and metal types
available
● May be cheaper than government-minted Coins
● Value determined by metal weight and purity
● Widely available
CONS
● Not considered legal tender
● May not be IRA-eligible
● Physical metals don’t generate revenue

Gold and Silver stocks
Precious metal-related Stocks derive value from activities related to the mining, production,
manufacturing, and distribution of Gold and Silver. These activities begin with exploration (i.e.,
prospecting), progress through multiple development stages, eventually move into production, and
then culminate in refining and minting. As paper assets, you can easily incorporate Precious metal
stocks into your Investment accounts. Doing so
allows you to gain exposure to Precious metals and
diversify your Portfolio without taking actual
possession of physical assets.
There are drawbacks to investing in Precious metal
stocks. To begin with, their prices tend to be volatile.
They rise and fall along with metal prices, but
investor sentiment and company success (or lack
thereof) also affects their valuation.
Also, there are over 2000 companies involved in exploring for and mining Precious metals. Only a
handful of these companies are (or will be) successful.

Gold and Silver stocks (cont.)
While Stocks are riskier than buying physical Precious metals, they do provide another way to
potentially profit from Silver and Gold.
PROS
● Diversify your paper Portfolio with exposure to
tangible assets
● May generate dividends and price appreciation
● More flexible than taking possession of physical
metals
CONS
● Prices don’t directly correlate to metal values
● Prices can be volatile
● Must vet companies

Precious metals ETFs
Exchange-traded funds (ETFs), Mutual funds, and Trusts are also “paper assets,” but like Precious
metal Stocks, there’s often something real lying beneath the surface.
ETFs and Mutual funds are “basket” Investments.
These vehicles purchase shares in a variety of
Stocks – in this case, Precious metals mining,
minting, and/or distribution Stocks. Then, they bundle
those Stocks together in a basket and sell tiny pieces
of the bundle as ETF or Mutual fund shares.
Bullion funds or Trusts, take another route. These
vehicles purchase large amounts of physical Gold
and Silver Bullion and store it securely.
Then, the Trust issues market shares worth a specific amount of Bullion. As Bullion prices
fluctuate, so do share prices, linking value to tangibility.

Precious metals ETFs (cont.)
ETFs, Mutual funds, and Bullion-backed Trusts are popular ways to invest in Precious metals without
having to store and insure physical assets. The costs incurred by these vehicles (management,
storage, insurance) are spread across all investors, potentially lowering the overall cost.
PROS
● Highly liquid and convenient
● Can invest in small dollar amounts
● May be cheaper than storing and insuring physical
Bullion
● Diversify your paper Portfolio with various levels of
tangibility
CONS
● Doesn’t give you access to physical commodities
● You can’t claim or redeem shares for physical
metal Bullion-backed ETFs may be taxed at higher
rates
● Unexpected tax expenses caused by the
Investment vehicle selling assets

Gold futures and options
Futures contracts are standard contracts wherein a buyer and seller agree to trade an asset at a
set price and time frame. When the contract matures, the seller will deliver the Precious metal,
while the buyer hands over the cash.
Options on futures contracts give buyers the right, but
not the requirement, to buy an asset under similar
conditions. In this way, options contracts provide the
same leverage as a futures contract without the risk of
being forced to take delivery of the Precious metals.
PROS
● Can produce hefty profits
● “Paper assets” don’t require storage or insurance
● Relatively liquid
CONS
● Involves significant financial risk
● Values are highly volatile because of the
leverage involved

Gold and Silver certificates
Certificates of ownership, also called promissory notes, are issued by Bullion banks like the Perth
Mint. Each certificate promises the delivery of a certain amount of Bullion if the certificate is
redeemed. Certificate investors, however, don’t technically own the Bullion backing the certificate.
Certificates come in two styles:
● Allocated (fully reserved) certificates set aside a
specific quantity of Bullion that is stored in your
name
● Unallocated (pooled) certificates don’t
correspond to specific Bullion – when you
redeem your certificate Bullion is pulled from the
mint’s operating supply of metal

Gold and Silver certificates (cont.)
Some investors buy certificates because they cut down on the burden of owning physical Bullion
(storage and insurance costs, risk of theft, etc.). However, certificates are not risk-free: as glorified
IOUs, they are not legal tender and they are only redeemable at the issuing mint. Additionally,
Bullion banks don’t always have enough Bullion on hand to back their certificates.
PROS
● No responsibility to arrange storage and insurance
● Lower markups to acquire metal
● Provide another way to own physical Bullion
CONS
● Bullion banks don’t always keep promised Bullion
on hand
● If the bank goes bankrupt, you may not recover
your Investment
● Banks may charge premiums over the spot price
● May be required to purchase large minimum
amounts
● No direct ownership prior to certificate redemption

Digital Precious metals
Digital Precious metals are fairly simple. Backers issue tokens on blockchains, with each token
equivalent to a set amount of metal. Investors can buy these digital assets and rest easy knowing
the value of their Investment moves in lockstep with metal prices.
PROS
● Portrayed as convenient and easy to access
● Brings the Gold standard into the modern age
● The blockchain is touted as incredibly secure
CONS
● Some investors think Bullion-backed tokens
defeat the purpose of metal ownership
● Blockchains have been hacked before
● Can’t exchange your tokens for physical metals
Several online marketplaces now permit investors to securely buy, sell, and redeem digital assets
backed by Gold and other Precious metals. They strive to marry Precious metal fundamentals with
the ease and modernity of blockchain-based technology.

Invest in Gold and Silver
With all the options available, identifying the best way to invest in Gold and Silver can be difficult.
And truly, the answer depends on you, your investing objectives, your tolerance for risk, and the
depth of your wallet. At Satori Traders we make two general recommendations:
1. Take possession of some physical Silver and Gold.
Store this metal where it is readily accessible when
needed.
2. Diversify at least 3 to 10% of your retirement
savings into physical Precious metals.
We believe the best way to invest in Gold and Silver
is to have a little bit on hand and then trade some of
your paper retirement assets (Stocks, Bonds, Mutual
funds) for the security of physical metal.
You can purchase physical metal at your local Coin shop and this is the method that we prefer.
Develop a personal relationship with the store and they will take good care of you. You can also
purchase Precious metals online from Bullion dealers like APMEX or JM Bullion.

Gold IRA Investment
There is only one way to purchase and hold Silver and Gold using your tax-advantaged savings: a
self-directed Precious metals IRA.
With a Gold and Silver IRA, you can invest in physical
Precious metals using your tax-advantaged savings.
Although you can’t touch the Bullion in your IRA until
retirement, you can rest easy knowing it’s pure and
safe in an IRS-approved Depository.
This alternative retirement strategy allows you to hold
IRS-approved gold coins and bars in a tax-advantaged
account. The primary goal of a Gold IRA is to diversify
the investment portfolio, providing a hedge against
inflation and economic uncertainties.
By owning tangible assets like gold, you can safeguard your retirement savings from stock market
volatility and currency fluctuations. However, it is crucial to understand IRS regulations, choose
reputable custodians, and consider long-term financial objectives when investing in a Gold IRA.

Fake Bullion
Fake gold and silver, also known as counterfeit precious metals, are imitation products that are
made to resemble genuine gold and silver but lack their intrinsic value. Counterfeiters often use
various techniques to produce fake coins, bars, and jewelry with the intent to deceive unsuspecting
buyers and profit from the high value of precious metals.
Detecting fake gold and silver can be challenging, as
some counterfeits can closely mimic the appearance and
weight of authentic items. Common methods used by
counterfeiters include gold-plating cheaper metals or
mixing real gold or silver with cheaper materials.
Advanced technology has also made it possible to
produce more convincing fakes.
Investors and collectors must exercise caution when
purchasing precious metals to avoid falling victim to
counterfeit scams.
It is essential to buy from reputable dealers or sources, conduct thorough research, and be aware of
the telltale signs of fake gold and silver. Testing the authenticity through professional assays or using
specialized testing kits can provide additional assurance when dealing with these valuable assets.

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