When I say trading, I mean the purchase and selling of a product. What most traders and investors will do is purchase gold and silver in bulk, hold on to it for some time, and then sell it when the price is high. I suggest trading in “physical” gold and silver rather than paper ETF’s, “leveraged” gold and silver products, or futures contracts. The advantage of possessing physical gold and silver are many: it is private, portable, liquid, secure, and if you buy collectibles, beautiful and historical.
I generally prefer dealing with gold and silver coins because it can be easily transported rather than the bullion bars. But it all depends on you what type of gold and silver bullion you want to purchase and sell. Gold and silver bullion come in different sizes either in bar or coin. Gold and silver bullion coins are easy to conceal when you store them in your house.
This is how one aspect of how physical gold and silver trading works. The traders will purchase their metals from the supplier at a price, after which the trader will sell it to different gold and silver dealers and jewelers at a standard price in the market. This allows them to profit and earn bigger returns from their investments.
I don’t recommend you make your gold and silver purchases all at once. Rather, I prefer to dollar cost average purchases over many months to take into account the fluctuating price of gold and silver. If you have paid attention to the markets over previous years, you will have noticed despite the ups and downs in the market, the prices have steadily risen.
One unique service I really like is called Silver Saver. After setting up a silver savings account, I simply create an automated purchase and set it on a schedule. In other words, I am making a scheduled purchase every month. Once I have 20 ounces in my account, I have the physical bullion delivered to me.
Another program I have used to accumulate silver is called Silver Snowball. With this program, I purchase a silver coin every month. With my membership I am also given a website to refer others to, and when they purchase silver coins I earn bonus silver. With just a few people buying coins from Silver Snowball I have been able to get my silver way below the market spot price.
The price of gold and silver is not permanent, it changes every day. There are instances wherein the price of gold and silver goes up and there are instances that it goes down. You have to be constantly alert and aware of the spot price changes in gold and silver.
You can go online if you want to find out more about gold and silver coins and bars. Gold and silver coins have different designs and characteristics, and so do gold and silver bars. Researching online about physical gold and silver trading is easier and more convenient.
There are also a slew of online trading websites where you can compare the prices of gold and silver coins and bars. These websites allow you to log on to window shop before you purchase your choice of gold and silver. Be sure to get a well-known supplier or dealer. Also be reminded to be careful when buying gold and silver through the internet. This business involves large amounts of money so you have to be alert of frauds in online physical gold and silver bullion trading business. Never buy gold and silver from TV ads.