Should I Buy Gold and Silver? Investing for Beginners Series #14

Should I Buy Gold and Silver? Investing for Beginners Series #14


Should I Buy Gold and Silver? Investing for Beginners Series #14 david moadel welcome to looking at the markets with
David Modell should I buy gold and silver that’s the topic of today’s video
we’re also going to cover some essential gold and silver terms that you really
need to know if you’re going to consider buying and/or selling gold or silver and
this is part of a series of videos that I call investing for beginners and if
you have questions or if you’d like some help
putting together an investing or trading plan maybe you want to know more about
gold and silver or stocks bonds crypto currencies options whatever it is you
can email me anytime at David Modell at gmail.com and that email address is
right down below all right so should I buy gold and silver well let’s first
understand some terms that we need to know about gold and silver first of all
precious metals those are the most rare and highly valued metals especially
we’re talking about gold silver platinum and palladium those are precious metals
and the opposite of that would be base metals those are common non-precious
metals such as copper zinc and aluminum now what is the spot price that’s a
super important term you’re going to want to know the spot price is what you
would pay if you bought a precious metal immediately right out of the ground spot
price does not include what it costs to make bars or coins out of the metal or
to ship it store it protect it etc therefore generally speaking you will
always pay more than the spot price when you buy a precious metal
here’s another term you’re going to want to know bouillon bouillon is gold and
silver that is officially recognized as being at least 99.5% pure bullion comes
in the form of bars or ingots not coins and what are ingots well a picture says
a thousand words so rather than try to describe it here they are
these are ingots now what is a troy ounce
that is a measure of weight sometimes used by precious metals dealers one troy
ounce equals approximately 31 grams numismatic value that is the historical
or collectible value of a coin as opposed to the value of the raw material
itself here’s an interesting one junk silver that’s US coins minted before the
early 1960s which contain 90% silver and by the way there’s no such thing as junk
gold interestingly enough junk silver isn’t really junk at all and can be
surprisingly profitable as an investment and here’s what junk silver looks like
the gold standard that’s dollars and other currencies
having value because they are backed by gold and could at least theoretically be
exchanged anytime for gold in 1971 the United States took the dollar off of the
gold standard and onto the fiat system in which dollars now had value simply
because the government said so so here’s a question should I buy precious metals
well I cannot tell you what to buy or what to sell but I can tell you this
unlike stocks dollars and crypto currencies gold and silver have been
around for over 5,000 years as a currency and as a store of value and
here’s a chart from 2005 to 2008 teen gold has actually outperformed the S&P
500 believe it or not and the S&P 500 I’m having SP why that is the ticker
symbol for an ETF that tracks the S&P 500 and that is the blue line and I’m
using the iShares gold trust ticker symbol is IAU and that tracks the value
of gold and that is represented by the red line and notice that from early 2005
all the way through mid 2018 you might think that stocks did better than gold
nope as we can see here it did quite a bit better at least according to these
two ETFs and this is from Google Finance com all
right so we can see that the iShares gold trust went up 200 percent while the
Spyders the the s py or State Street 500 SP 500 ETF trust went up much less than
that 100 about 126 percent so precious metals often tend to hold
their value better than stocks when economic recessions and depressions
occur therefore I feel and it’s just my opinion that it’s not a bad idea to own
a reasonable allocation of precious metals when the stock market is
extremely overvalued so when I feel that stocks are too expensive or the stock
market is just too high and possibly bound for a correction or recession or a
bear market that kind of thing when stocks go down a lot what I may do is
increase my allocation in precious metals holdings gold silver that kind of
thing but I will never over allocate I will never buy more than I can afford
and I will never put too much of my portfolio into one thing including
precious metals as much as I like them I’m not going to over allocate into that
or anything else all right so I hope this gave you a perspective and some
terminology some information that you’ll need to know about precious metals and
especially gold and silver again if you’d like some more help putting
together a plan for your investing because you really need to have one if
you’re investing without a plan then you are really asking for problems so my
name is David Modell my email address is David Modell at gmail.com that’s how you
can contact me for more help and if you like this video please give it a thumbs
up on YouTube and leave a comment and please subscribe to my youtube channel
and hit that bell on youtube so you can receive the latest updates on my
financial educational videos thank you so much I really appreciate it and I’ll
talk to you again soon you

2 Comments

  1. Nice. I am a fan of stacking silver. Many overdid it w silver around $30 but both silver and gold are proven places to store value.

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