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In times of economic uncertainty, it’s difficult for investors, especially new ones, to know how to protect themselves. There is some risk with every purchase or investment, but when are you going too far?
Precious metals have represented wealth for as long as wealth has existed. If you’re looking at your investment portfolio, unsure of your next move, you might wonder whether it’s time to involve precious metals.
If you’re thinking, “Should I buy gold or silver in 2023?” research is the first step to answering your question. Oxford Gold Group is here to help you understand the benefits of buying gold and silver, things to consider when you purchase, investment options, and more.
Benefits of Buying Gold
The first precious metal to come to your mind is probably gold. Gold is renowned for its value across cultures and time, but is it a good investment?
In 2023, there are several benefits to buying gold.
Safety and Reliability
Gold is one of the most reliable investments you can make. As stated above, it retains its value over time. It’s known as a safe haven investment for this reason. It’s also valuable across cultures, not just in the United States.
In times of economic uncertainty, which 2023 certainly is, gold is one of the few investments you can depend on.
Inflation is a hot topic in 2023. While other investments decrease in value as the value of the dollar drops, gold is an exception. It actually increases as the value of the dollar decreases. Even if inflation negatively impacts some of your portfolio, you can always rely on gold to act as a hedge against it.
You never want to put all your eggs in one basket. Your portfolio can’t rely on one type of investment. Gold is a great way to diversify your portfolio since it reacts differently to economic conditions. Moreover, it comes in various forms, like gold bars and coins.
Benefits of Buying Silver
Gold isn’t the only contender when considering investing in precious metals. Many people, especially if they have no experience with precious metals, think of silver as gold’s runner-up, but it has plenty of unique benefits.
In 2023, the demand for silver continues to grow across industries and nations. Without the supply to meet this demand, the price and value of silver will increase. You might consider investing in physical silver like coins or bullion before it becomes harder to purchase.
Silver’s Upside Potential
In 2023, silver has significant upside potential, referring to experts’ predictions about how the price of certain assets or investments will increase. Silver costs $23.37 per troy ounce at the time of this writing. Experts expect this number to increase with demand.
One reason the demand for silver continues to grow is its practical use. Solar panels, phones, silverware, jewelry, and electronics use silver. Since so many industries use this precious metal, you can depend on it to maintain its value well into the future.
Since silver is valuable universally for both investment and industrial purchases, you can buy and sell silver in almost any part of the world. In times of economic uncertainty, investment in silver has a high risk tolerance because you can easily turn it into liquid assets if needed.
Silver vs. Gold: Things To Consider
While investing in one precious metal doesn’t eliminate your ability to invest in another, understanding their differences is always smart. Whether you’re a new or seasoned investor, you know investments must be strategic. If you wonder, “Should I buy gold or silver in 2023?” you want to know everything you can before making your move.
Silver is less expensive than gold. While the price of both precious metals changes depending on certain economic conditions, gold retains more value because it is more scarce.
When purchasing a precious metal, know that the “spot price” is not always what you will pay. The spot price represents the metal’s current market value if you buy it in bulk. If you’re buying smaller amounts, this price will change.
Consider the sum you’re willing to invest. Experts say that silver can be a good starting point if you want to purchase a smaller amount of precious metal since it is less expensive. If you have a larger amount to invest, gold offers more gains over time due to its scarcity.
The time of year also determines the price, value, and demand of precious metals. If you look at market trends, you’ll see the best times to buy gold are toward the beginning of the year (January, February, April) or in the summer (June, July).
More specifically, January, March, and late June are statistically the most popular choices for purchasing silver compared to other seasons. These are the times when the price of silver is at its lowest.
Should You Buy Bars or Coins?
There are several ways to invest in silver and gold, including the following:
- ETFs (exchange-traded funds) and mutual funds
- Mining stocks
Out of these options, bars and coins are the only tangible assets. Generally, you have more control over tangible assets compared to stocks, which are more vulnerable to changes in interest rates. Having tangible assets in addition to stocks and bonds is another way to diversify your portfolio.
Bars come in rectangular form and are 99% pure. You can purchase these in ounces. Coins come in ounces and fractions of ounces. Depending on the rarity of the coin, its value can surpass the standard melt value of gold or silver. Oxford Gold Group offers coins and bars in silver and gold, which you can browse on our products page.
Tangible assets come with risks, too. They require very secure storage, which often means having a safe in your home or paying for storage elsewhere. Choosing the form you want to purchase your precious metal is a personal choice you can make based on your portfolio and resources.
Investment Tips for Buying Gold or Silver in 2023
If you’ve never invested in gold or silver before, it may seem intimidating. You have many options, but how do you know what to do?
Investments are for the future. One investment option that reflects this well is a self-directed silver IRA or gold IRA. An IRA is a type of retirement account that traditionally holds stocks and paper assets. Self-directed IRAs, on the other hand, can hold commodities like silver and gold. This account also gives you more control over your assets.
Taking this route can help protect your retirement portfolio. Note that this type of IRA has the same withdrawal limits as a regular IRA. If you invest in a self-directed IRA, the IRS requires you to store your gold or silver at a storage facility.
EFTs (exchange-traded funds) or mining stocks are other investment options if you want to avoid having to worry about the security of tangible assets. These will increase in value as gold and silver do without having to store your bullion.
Selling Options for Gold or Silver
A call option is a contract that gives you the right to purchase a stock, bond, or commodity — like gold or silver — at a specified price (strike price) for a certain period.
You pay the premium and have the choice to purchase the silver or gold later. If the value of gold or silver increases, and the price in the contract is lower than its market value, you benefit. However, if its value drops, the seller benefits. If you decide to sell the call option instead, you must sell it at the agreed-upon price in the contract.
On the other hand, if you’re selling your gold or silver through a put option, you have the right, but not the obligation, to sell the gold to a buyer during a set period at a specified price. In this case, you want the value of gold to decrease, so you can profit off the difference your buyer pays.
Legitimacy and Buyers
Whether you’re selling or buying gold or silver, always do your research first. Look out for red flags, and come to any meeting with questions. You should be 100% confident that you can trust the other party before moving forward with any transaction. If you’re buying gold or silver, ask yourself:
- What is the reputation of the other party?
- Are the coins or bars in mint condition?
- What is the purity of the bullion?
- Is the metal stamped or graded?
- Are the assets IRA-approved?
Invest in Your Future With Oxford Gold Group
When asking yourself, “Should I buy gold or silver in 2023?” Oxford Gold Group can help. As an industry leader in precious metals, we work hard to convert your retirement fund into precious metals. Contact us at 833-600-GOLD or visit our products page to learn about our gold and silver bullion options.