If you are new to precious metals, it all can be a little over whelming. Lots of questions arise: Should I buy Gold, Silver, or both? What does "Spot" mean? What type of coins or bars should I buy? From whom should I buy? ...etc.
First and foremost precious metals are an investment no matter how you look at it and more so in this unstable economy. Most people fail to understand that paper money is just a paper representation of real actual gold stored in a vault somewhere, If SHTF, our paper money would be just paper.
Should I buy Gold or Silver? Both have their own benefits. Gold has always possessed a magical lure which has been desired by civilizations throughout time. In fact, the creation story for the Sumerians, the oldest known civilization, alleges that Earth was once mined for gold by an ancient human-like alien race called the Annunaki. But I digress...
Since you are reading this blog, you probably have the foresight to consider emergency preparedness for possible disasters. There are many scenarios that could arise that would leave paper money useless. In such scenarios, bartering is King. And unless you're going for a yacht for gold bartering transaction, silver is the easy choice to buy. So always buy silver, then gold..
What Does Spot Mean? Spot is the current value of the metal. If you are buying a precious metal, stores with charge you more than what the "spot (current) value" is so that they can make money on the transaction.
Do I buy bars, American Eagles,, foreign coins, blanks? (...too many options!!!!) There seems to be good rationale for the different options depending on your motives, but I personally like to buy US Coins as they would be easily recognizable in a barter situation.
From whom should I buy? There are many reputable sites, but also some not so reputable ones. Do research before buying. I personally go through APMEX and have not had a problem yet.
What is the cheapest way to buy precious metals? The most bang for your buck is buying what is known as "Junk Silver." The name can be deceiving. Junk silver is simply US coinage dated before 1965. You can save lots of money this way.
Rule #1: If you are going to invest in precious metals, you should buy physical coins or bars that you can hold in your hand.
Rule #2: Do not keep your precious metals stored at a bank! Store them securely at your home or in another hidden location. When all else fails (including banks as we saw in Cyprus) you can rest assured that you have access to your wealth anytime you need it,
The following article has more great advice on buying silver/gold as it relates to a SHTF situation:
INVESTING IN PRECIOUS METALS