Category: Storage

general info on all things precious metals storage

Inflation Report Puts Pressure on Gold and Silver Prices

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As the latest US inflation report for January came in smoking hot, gold and silver prices are feeling the heat with a slight dip in early US trading on Thursday. At publishing of this commentary, April gold was up $5.60 at $1850.9, while March silver increased $0.143 to $21.715. Brace yourselves, investors, as the US economic data due for release on Thursday includes a ton of hotly anticipated updates, such as the weekly jobless claims report, the producer price index, the Philadelphia Fed business survey, and new residential construction. Not to mention, several Federal Reserve officials are slated to give speeches today.

Despite the technical advantages held by the gold futures bulls, prices are in a fledgling downtrend on the daily bar chart. The bears’ next near-term downside price objective is to push futures prices below solid technical support at $1,800.00, which could spell trouble for the shiny metal. First resistance is seen at Wednesday’s high of $1,870.90, and then at this week’s high of $1,881.60. First support is seen at this week’s low of $1,839.30 and then at $1,830.00. Similarly, the silver bears hold the overall near-term technical advantage, with prices in a fledgling downtrend on the daily bar chart. The silver bulls’ next upside price objective is to close March futures prices above solid technical resistance at $23.00, while the next downside price objective for the bears is to close prices below solid support at $21.00. First resistance is seen at Wednesday’s high of $21.875, and then at this week’s high of $22.085. Next support is seen at this week’s low of $21.41 and then at $21.00.

While global stock markets are mostly higher, US stock indexes are pointing toward a lower opening when the New York day session began. In overnight news, the ongoing tension between China and the US escalated as China blacklisted US companies Lockheed and Raytheon, both major US defense contractors. This move comes after the US blacklisted six Chinese companies linked to the Chinese spy balloons. What does this mean for the market? Only time will tell, but it could lead to some serious turbulence.

The US dollar index is weaker on a corrective pullback from recent good gains that saw the index hit a five-week high on Wednesday. Nymex crude oil futures prices are slightly up, trading around $78.75 a barrel. On the other hand, the yield on the benchmark US 10-year Treasury note is presently fetching a hefty 3.788%, giving traders something to chew on.

Watch out, investors, as gold’s high-convexity allure may be on full display over the next couple of months. With the Federal Reserve taking its benchmark to at least 5.25%, pushing real rates higher, gold is likely to stay tethered around $1,800 an ounce. This could induce short-straddle expressions in the interim. The hotter PPI report falls into the camp of the US monetary policy hawks, who want to see the Fed continue to raise US interest rates to choke off problematic price inflation.

Don’t forget to visit our gold and silver new arrival pages for the newest product releases and to stay tuned for more market updates!

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.

King Charles III, The New Face of British Coinage

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In recent months, Britain has continued its mourning after the passing of Queen Elizabeth II in September 2022. As they heal, many changes have begun with the adoption of King Charles III on coinage and banknotes. The King has not officially been coronated, with the coronation of King Charles and his wife, Camilla, scheduled for Saturday, May 6, 2023. The long period with no official monarch is a long-standing tradition that the country remains in mourning for an appropriate amount of time.

As noted in the GoldClub Review earlier this year, the Royal Mint unveiled the new portrait of King Charles III in October 2022. The design was created by British sculptor Martin Jennings. Jennings is a well-respected artist, known for his ability to capture the likeness and personality of his subjects in his sculptures. The portrait was sculpted from a photograph of the King and incorporates elements from iconic portraits of other monarchs from Britain’s vast history of coinage. This design has been personally approved by King Charles III.

One of King Charles III’s main priorities is sustainability. The royal household advised major governmental organizations to take this into account with the change in the monarchy. The Royal Mint, Royal Mail, and Bank of England all announced the change of effigies will take place gradually to lower the cost and environmental impact. New coinage and banknotes will be produced to replace old, worn-out currency, but banknotes featuring Queen Elizabeth II will continue to circulate. Currency featuring Queen Elizabeth II is expected to be in circulation for at least 20 more years. King Charles will be only the second monarch to be featured on banknotes, as Queen Elizabeth II’s effigy only began appearing on banknotes in 1960.

Updated Features

The new design differs from Queen Elizabeth II’s effigy in a few ways. The new portrait shows King Charles III in left-profile relief, opposite his mother’s. It is a tradition in the monarchy to change the direction the monarch faces when every new monarch comes into power. The King is also portrayed without a crown, contrasting many of Queen Elizabeth’s effigies. Surrounding the portrait is the inscription “• CHARLES III • D • G • REX • F • D,”  which translates to “King Charles III, by the Grace of God, Defender of the Faith” in Latin.

The first coins to feature this effigy were the 50 pence coin and the commemorative £5 coin. The coins’ releases were meant to honor the life of Queen Elizabeth II. The 50 pence coin features King Charles III on one side and a design highlighting the 1953 coronation of Queen Elizabeth II on the reverse side. 9.6 billion coins are going to be produced to honor the Queen’s 96 years of life. The reverse of the commemorative £5 coin features two portraits of Queen Elizabeth II designed by artist John Bergdahl.

Obverse and Reverse

The first 2023 Britannias to include King Charles III on the obverse have now been minted and are available to order from GoldClub Direct. The reverse face of the coin remains the same design. For a limited release, the Royal Mint produced 2023 Britannias that featured Queen Elizabeth II as they were adapting to the largest change in British coinage in decades. Throughout this year and in future years, more and more bullion products from the Royal Mint will feature King Charles III. 

It is not only British coinage that is affected by this change. All members of the British Commonwealth also feature the monarch on their currency. Countries like Canada, Australia, and others will also change their currency to feature King Charles III. These portraits could be different from those of the Royal Mint as each sovereign mint has the ability to create its own design.

2023 Gold and Silver Britannia’s and other King Charles III coinage available now!

If you are looking to be one of the first investors or collectors to get your hands on bullion coins featuring King Charles III, check out GoldClub Direct for some of the lowest prices on the internet. Please don’t hesitate to reach out to GoldClub support specialists for any questions you may have. They are reachable by phone at 1-800-700-4715, by email at [email protected], or through the live chat feature in the bottom right-hand corner.

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC. and should not be construed as financial advice.

Introduction to Precious Metals Investment Strategy Theory: Dollar-Cost Averaging

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Most things in life don’t come with “free trials” or “investment insurance” and starting something is never easy; we all have different goals, risk tolerance and time horizon. When it comes to investing in precious metals, it can be difficult to know where to start and how to come up with a personal investment strategy that works for you.  For many, the journey begins with a desire to protect family wealth and diversify one’s portfolio. As the global economy becomes increasingly uncertain and markets become more volatile, many look to find a way to protect investments from potential downturns.

Enter the potential benefits of investing in precious metals.

It is quickly evident that precious metals have a low correlation with other asset classes and can act as a “safe haven” investment during times of economic turmoil. This makes them an attractive portfolio diversification tool.

There are several different strategies that investors can use when investing in precious metals. Some examples include:

·         Physical ownership: This strategy involves physically owning the precious metal, such as buying gold or silver coins or bars. This can be a good option for investors who want to have direct control over their investment and the ability to physically hold and store the metal.

·         ETFs and Mutual Funds: This strategy involves investing in exchange-traded funds (ETFs) or mutual funds that track the price of precious metals. This can be a good option for investors who want to gain exposure to precious metals without the hassle of physically storing them.

·         Mining stocks: This strategy involves investing in companies that mine and extract precious metals. This can be a more speculative option, as the performance of mining stocks is often closely tied to the price of the underlying metal.

·         Options and Futures: This strategy involves buying options or futures contracts on precious metals. This can be a more advanced and risky strategy, as options and futures trading involves significant leverage and can result in large losses if not executed properly.

·         Collectible Coins: This strategy involves investing in rare and collectible coins, which can appreciate in value over time due to their rarity and historical significance.

·         Allocation strategy: This strategy involves allocating a specific percentage of a portfolio to precious metals. This can be a good option for investors who want to diversify their portfolio and gain exposure to precious metals without over-allocating to the asset class.

 

Dollar-cost averaging

While many of the above options pose as suitable starting points, let’s take a closer look at one of the most commonly used strategies when combining physical acquisition with an allocation strategy. The first thing to understand about  Dollar-Cost Averaging (DCA) is that it is a way to reduce the risk of market timing. DCA is a popular investment strategy that involves investing a fixed amount of money at regular intervals, regardless of the price of the asset. This strategy is often used by investors when buying stocks, but it can also be applied to investing in precious metals, such as gold and silver. DCA can be an effective strategy when investing in precious metals and can help mitigate the risk of market volatility.

 When investing in precious metals, it can be tempting to try to time the market by buying when prices are low and selling when prices are high. However, this can be a difficult and unreliable strategy, as predicting the direction of the market is never certain. DCA helps to mitigate this risk by investing a fixed amount of money at regular intervals, regardless of the current price of the asset. This means that investors are buying precious metals at different prices, which helps to average out the cost of their investment over time.

DCA is also effective at mitigating the risk of volatility. Precious metals are known for their volatility, and the prices of gold and silver can fluctuate greatly over short periods of time. This can make investing in precious metals a risky proposition for some investors. However, DCA helps to mitigate this risk by investing a fixed amount of money at regular intervals, regardless of the current price of the asset. This means that investors are buying more precious metals when prices are low and less when prices are high. This helps to reduce the overall volatility of the investment and ensure that investors are not buying at the top of the market.

Another advantage of DCA is that it encourages long-term investing. When investing in precious metals, it can be easy to get caught up in short-term fluctuations in the market. However, DCA encourages investors to focus on the long-term by investing a fixed amount of money at regular intervals. This helps to ensure that investors are not swayed by short-term market fluctuations and are instead focused on the long-term potential of their investment.

DCA is also a simple and easy strategy to implement. Unlike other investment strategies, which can be complex and difficult to understand, DCA is a straightforward and easy-to-implement strategy. All an investor needs to do is decide how much they want to invest, and then invest that amount at regular intervals. This can be done through a broker or a precious metals IRA, and it can be automated so that the investor does not have to worry about timing the market.

Finally, DCA is a cost-effective strategy. When investing in precious metals, investors often must pay a premium for the metal, which can be a significant cost. DCA helps to mitigate this cost by investing a fixed amount of money at regular intervals, regardless of the current price of the asset. This means that investors are buying precious metals at different prices, which helps to average out the cost of their investment over time. Moreover, investors are likely to closely mirror the 50- and 100-day moving averages by engaging in this type of strategy.

It is important to note that there can be some drawbacks to this strategy:

·         One of the downsides of DCA is that it may not take advantage of market opportunities and result in a higher overall cost for the investment.

·         Another downside is that it may not be suitable for investors with a short-term time horizon and for those looking for a quick profit.

·         DCA may not perform well in a rapidly rising market, as it may lead to buying more of the asset at higher prices, lowering the potential return on investment.

·         It can be a costly strategy as it requires regular contributions to the investment regardless of market conditions, which can be a burden for some investors.

While there is no free trial, DCA does offer a way to test a market and investment while minimizing upfront risk. Dollar-cost averaging is a powerful strategy that can help investors mitigate the risk of market volatility and encourage long-term investing when it comes to precious metals. It is simple, easy to implement and cost-effective. By investing a fixed amount of money at regular intervals, regardless of the current price of the asset, investors are able to average out the cost of their investment over time, which helps to reduce the overall volatility of the investment and ensure that they are not buying at the top of the market.

It is important to note that, like any investment strategy, DCA doesn’t guarantee profits or protect against losses. It’s always important to do your own research.

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC.. and should not be construed as financial advice.

The Future of Gold and Silver: Prices, Predictions, and More

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As investors and traders look to research and forecast for 2023, one of the most important questions on their minds is what the economic outlook of gold and silver will be. With gold and silver being two of the most popular and valuable commodities in the world, understanding the potential price movements and predictions for these precious metals is essential for anyone looking to make informed decisions in the financial markets. 2022 once again provided evidence of how gold preserves when there is turbulence in the market. Are we in for a record bearish or bullish year? Let’s explore the future of gold and silver, looking at prices, predictions, and more.

1. Gold and silver prices have been on an upward trend since the second half of 2022, with gold prices seeing an increase of over 10 percent in Q4.

2. Analysts predict that gold and silver prices will continue to rise in the coming years, with some expecting a bullish outlook for 2023.

3. The US dollar is expected to remain weak in the coming years. Keep an eye on central bank interest rates.

4. Global geopolitical tensions are expected to remain high in the coming years.

5. Gold and silver prices could be affected by key races for governor, mayor and other offices, indicating momentum for the direction of the US presidential election in November 2024.

Overview of Gold and Silver

Gold and silver (next to currencies and bonds) are both considered safe-haven assets, meaning they tend to increase in value during times of economic uncertainty. As such, gold and silver’s price range tends to move inversely to the stock market, meaning that when the stock market is down, gold and silver prices tend to go up. Gold and silver prices are also affected by supply and demand, as well as geopolitical events. Factors such as GDP growth, inflation, and currency exchange rates will all play a role in determining the price of gold and silver.

When it comes to predicting the future of gold and silver prices, there are a few different factors to consider. First, it’s important to look at the current economic environment. If the economy is strong and there is low inflation, gold and silver prices tend to be lower. On the other hand, if the economy is average-to-weak and there is high inflation, gold and silver prices tend to surge higher. It’s also important to look at the physical demand for gold and silver. If institutional, retail, and industrial demand is high, prices tend to increase. Conversely, if demand is low, prices tend to decrease- while if they drop too low, supply will dwindle.

Traders can utilize strong technical indicators to better anticipate price fluctuations and still provide the wrong results due to unforeseen geopolitical activities. If there is political or economic instability in a particular region, gold and silver prices tend to receive a boost. Looking along party lines: when a Democrat is in office metals prices tend to rise, while Republican leadership typically pushes prices down.

II. Economic Outlook for Gold and Silver in 2023

Overall, the economic outlook for gold and silver in 2023 should yield positive energy. As the global economy continues to recover from the pandemic, demand for gold and silver is expected to remain strong. Additionally, geopolitical events such as the Ukrainian invasion will continue to stoke metals prices. Rising inflation in the US leading to expanded global recession pressures could also have a broader impact on gold and silver prices. And while the dollar had a strong annual performance, last year’s gold rally in December showed that the greenback is weakening. The rally doesn’t show any signs of stopping, trading above the 50-day moving average and likely pushing above $1,900. The market’s consensus seems to indicate a more severe downturn is still on the horizon in the short term.

Furthermore, the introduction of new technologies and alternative investments could reduce the appeal of gold and silver as safe-haven assets. While Cryptocurrencies may have lost their luster in recent months, it will be interesting to see how they will rebound in the new year. It’s possible many who favored crypto yet again revisit precious metals as a safe haven asset.

Gold and silver are two of the most important commodities in the world and understanding the future of these precious metals are essential for anyone looking to make informed decisions investing in the financial markets. Will we see any additional unexpected geopolitical activities impact the market? Or perhaps a new trend on TikTok where Gen Z falls in love with physical metals! Overall, the economic outlook for gold and silver in 2023 is positive, and it’s likely that prices will remain high. While easing tensions in Ukraine and Russia could help lower prices, It’s hard to imagine prices falling to pre-covid levels. As such, it is impossible to predict the prices of gold and silver for 2023 accurately. However, by monitoring the market and staying informed of global events, investors can make informed decisions, rather than those based in fear and greed, about when to buy and sell gold and silver.

Don’t forget!  GoldClub Direct currently has 2023 American gold and silver eagles in stock and ready to ship!

 

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC.. and should not be construed as financial advice.

Where can I store my precious metals in 2022?

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Storage of precious metals has often been thought of as a deterrent when buying precious metals, when compared to buying stocks or other digital assets that do not demand storage(although personal storage has become popular in these areas as well). Although storage does add an extra step, it should not deter you away from buying these commodities.  There are many different places to store precious metals. Each site has its advantages and drawbacks. This article will go over some popular choices of where investors tend to store their assets.

 

Home Safe

A typical storage place for precious metals is a home safe. If your house has space to install a home safe, this could be an intriguing option. It offers quick access in emergencies and controllability. It is important to know there is always the possibility of theft or damage from natural disasters, so high-quality safes that are fire-proof and water-proof might be worth the extra costs.

 

Hiding Spots

Another in-home option is to hide the precious metals throughout the property. This option can also be at risk of theft or natural disaster, especially if you tell others where you are hiding the assets. Hiding spots can include in drawers, in the walls, in the attic, buried in the ground, etc.  The more creative the hiding spot, the better. This is the cheapest option available.

 

Bank Safety Deposit Boxes

Safety deposit boxes are another option for precious metal investors. This is less common because the boxes tend to be too small to fit a large amount of metals and access to the box is limited to the bank’s hours. Safety deposit boxes are also not FDIC insured but are still under the control of the banking system. If the banking system was to crash, you would not be insured for your investments being held by the bank.

Third-Party Depository

Many storage facilities around the world will store your precious metals for a fee. These facilities are usually high-tech and insured, meaning you can rest easy knowing your assets are safe. Depositories offer segregated or non-segregated storage, meaning you can keep your metals separated from other metals, or in a more communal storage area. Depositories are also necessary if you are looking to add precious metals to a self-directed IRA. If you are looking for a trustworthy storage facility, AMGL is GoldClub Direct’s preferred depository.

 

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClubDirect LLC.. and should not be construed as financial advice.

How should I care for my precious metals in 2022?

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As the holidays approach, it is a great time to reflect on how we maintain important aspects of our health and lives and give thanks for all our blessings. In the same vein, it is important when receiving precious metals to understand how to care for the product. Using the appropriate methods can help to maintain the value of your asset.

Upon arrival, handling the coin with care will help to preserve the condition. Before holding the product, it is recommended to wash your hands and use hand sanitizer. Only handle the product when it is necessary to do so. For collectible products, it can also help to hold the coin or bar by its edges, so as to not get fingerprints on the obverse or reverse. If available, use lint-free cotton gloves to handle the asset to avoid fingerprints.

Another helpful tip is to prepare a cleaned area for you to place the asset. A piece of cloth or towel can help to reduce unnecessary contact with dirty surfaces. A soft texture can also help to reduce any damage if the commodity is accidentally dropped.

When handling different metals, it is also smart to keep the products separate and clean your hands when switching between products. This will ensure no dirt from one metal can tarnish the other metal. Avoid breathing over the products to keep damaging moisture away from the assets.

Many people believe cleaning a precious metal product can add value to it. This is a large misconception. Cleaning a coin can damage the coin and lower its value. Many collectors would rather have an original product with some blemishes than an incorrectly cleaned product.

If cleaning your asset is necessary, it is suggested to only clean the most superficial layer of the product. This will help to keep the precious metal fully intact. Only use mild soap and water. Specialized polishers can corrode the metal. Once washed, pat dry with a soft towel, being careful not to scrub, as this can scratch the surface. Dry completely before returning the product to storage.

Storage is also a very important aspect of caring for your metals. Store your metals in a cool, dry place. The best containers for precious metals are airtight and natural to prevent any moisture from getting in and to keep corrosive elements away from your assets. Just as with handling, it is essential to separate tarnished metals from untarnished metals to prevent cross-contamination. By following all of these steps, you will be able to care for your products to ensure quality and value remains.

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClubDirect LLC.. and should not be construed as financial advice.

Starting a coin collection in 2022

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Many people want to start a coin collection, but don’t know where to start. This blog is a guide for prospective collectors looking to get their first coins. 

Collecting coins is a hobby that has many different avenues. Coin collecting for one person can be completely different than it is for another.  In general, people collect coins based on the design, country of origin, year, finish, mint mark, artist, denomination, etc.

 If you are looking to start collecting but do not want to spend a lot of money, you can start with coins you might already have. Popular beginner collections include getting a coin from every state or every year of mintage. Lincoln pennies are a good starting point, as they are still in circulation or can be purchased for a low cost at many online retailers, or at coin shows and dealerships. Another common collection set is Indian Head pennies.

Coin collecting is all about what you like. There is no right or wrong answer to what you should collect. If a set interests you, then start collecting that set. Once you start building your collection, make sure you handle your coins correctly. Coins can easily be scratched or start showing blemishes, so they should always be kept in a safe dry place. 

Research is one of the most important aspects of collecting. If you want to learn about all the United States coinage, buy The Guide Book of United States Coins, more commonly called the Red Book. Knowing about the coins you have, or want to buy, is very important to understand the value of the coins. This book will also teach you the history of each coin, and all the necessary information to become an advanced numismatist.

Another way to gain more experience in coin collecting is by joining a coin club. Coin clubs allow you to share information and speak with other enthusiasts about collecting. There are local and national coin clubs, depending on your preference. The American Numismatic Association has a directory available of coin clubs across the nation.

With the right plan, coin collecting can be a hobby that lasts a lifetime. Coin collecting should be an enjoyable adventure filled with passion and interest.

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC.. and should not be construed as financial advice.

Precious Metals Depositories: Which is right for you in 2022?

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There are many different ways to keep your precious metals safe. You can store them in in-house safes, hiding spots (just remember to take them out of old furniture before you donate!), safe deposit boxes, or bullion depositories. Precious metal depositories are third-party storage facilities where investors can pay a specified amount to store their investments. A depository can be used when an investor has amassed a large volume of precious metals, and can no longer store them using one of the other methods. Precious metal depositories offer state-of-the-art security measures to ensure customers their investments are safe. A UL-rated depository meets the standard set by Underwriters Laboratories for burglary protection. Class 3 vaults can withstand attacks from common tools for 2 hours. Class 3 is the highest possible UL vault rating. Along with high-level security, depositories offer periodic auditing to verify the inventory is still secured. 

Most depositories also provide insurance to cover any instances of theft or damage. A common insurance coverage plan for depositories is all-risk. This type of insurance plan insures your valuables 100% for anything not explicitly excluded by the coverage. With all-risk coverage, the investor has the assurance that the full value of their investment will be kept safe while being held at the depository. Although depositories can be expensive, they can provide customers with a sense of security while protecting their valuable investments.

 

Options for Precious Metals Depository Storage

There are two different methods depositories will use when storing customers’ investments, segregated and non-segregated. Precious metals that are segregated in a depository will be separated and private from other investments to ensure that when you withdraw your precious metals, they were the exact same pieces of metal you put in the depository. Items stored in non-segregated depositories are not separated from other customers’ investments but are put in communal vaults organized by specific weights, refineries, and years of mint. This means that at withdrawal, you will receive the same specifications as the products first sent to the depository, but they might not be the exact same precious metals you purchased. Both types of storage offer the same amount of protection. Depositories have different rules and pricing for what storage method they use. Some only offer segregated, some only offer non-segregated, and some offer both.

 

Depository Use for Precious Metals IRA

When creating a precious metals IRA, it is required by law to store your precious metals in an approved depository. Any precious metals that you have received physical delivery on cannot be included in your precious metals IRA. 

The process for adding precious metals to your IRA account is simple. Before making any purchases on precious metals, you must first find a custodian and depository for your precious metals. The custodian is responsible for the administration of the account. The next step is to choose precious metals to purchase, and the custodian will send funds to the dealer in the name of your IRA account. The dealer will then ship the precious metals directly to your chosen depository.

It is important to choose the precious metals depository that will cater the best to investments. By researching available depositories, you will get a better understanding of your needs and what each depository has to offer. Below is a comparison of some of the most popular depositories for precious metals.

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClub Direct LLC.. and should not be construed as financial advice.

 

Paper Precious Metals vs. Physical

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Paper silver & gold are digital products, securities, or derivatives that actually have little direct connection to physical silver & gold. It continues to be discussed that the ultimate purpose of paper precious metals is little more than for a few large corporations to control the market pricing mechanisms. The paper market is full of risks for individual investors, as you are not truly owning physical silver or gold. Many people do not understand this difference between paper and physical metals; this article will look at investing in paper markets vs. owning physical metals.

 

What are paper precious metals?

Paper precious metals are comprised of securities and/or derivatives of fractionally backed physical metals. It does not provide direct ownership of physical precious metals. Most investors buy paper metals as ETFs (Exchange Traded Funds). These funds trade similar to common stocks; the two most common ETFs for paper are GLD and SLV.

 

GLD

GLD is the ETF symbol for SPDR Gold Shares. GLD was originally listed on the New York Stock Exchange in November 2004 and now also trades on The Singapore Stock Exchange, The Tokyo Stock Exchange, The Stock Exchange of Hong Kong, and The Mexican Stock Exchange. GLD was created as an option to invest in gold without taking physical delivery of the gold. GLD is fractionally backed by 400-ounce gold bars held in London vaults. The share price closely follows the spot and futures pricing of gold, along with some fees.

 

SLV

SLV is the ETF symbol for iShares Silver Trust. This fund was created to offer investors a convenient option to invest in silver without the need for physical delivery. SLV began trading on the New York Stock exchange in April of 2006. SLV moves closely with spot and futures prices of silver and is fractionally backed by physical silver held in the fund’s vault.

 

Should you buy paper precious metals or physical precious metals?

The paper markets are much larger than the actual physical markets. The ratio of paper gold to physical gold is over 100 to 1, while the ratio of paper silver to physical silver is over 400 to 1. This means that for every 1 ounce of physical gold supply, there are over 100  ounces of paper gold supply, and for every 1 ounce of physical silver supply, there are over 400 ounces of paper silver supply. Since the supply ratios are so lopsided, a paper investor is buying gold and silver which may not actually exist. The paper market is not fully collateralized by the physical metal and is therefore at risk of manipulation and volatility. There is not enough supply of physical gold and silver to back up all the ETFs. With physical metals, you can hold the asset in your hand. It is tangible and verifiable, unlike paper metals, which could have no actual intrinsic value.

Another risk of ETFs is that the investments are controlled by third parties which involve a lot of trust and risk. The investors have virtually no direct access to the physical metals the fund holds in its vaults. An investment in paper relies on the fund’s structure, leverage, and honesty. As the fund use banks as custodians, the investment further relies not only on the fund’s actions but also on the bank’s actions. If the bank were involved in any fraudulent activities, the investment in the paper metal would be at risk. You do not actually own the gold or silver that is being held in the ETF’s vaults; you only own the share of a fund, whose price is only determined by a potentially manipulated market, not the actual price of the physical precious metal. 

Compared to paper metals, physical metals’ most important advantages are that they are tangible and have actual intrinsic value. An investor can realize the value of the asset in their personal possession. Although there are some added challenges of delivery and storage, the investor fully controls the asset and can decide what they want to ultimately do with it. Physical metals have no counterparty risk like paper metals and have the full upside potential in price. 

For a prospective investor, an ETF could be a possible investment because of its ease of entry and exit, straightforward monitorability, small minimum purchase requirement, and low storage fees. However, for an investor looking to possess physical ownership with zero counterparty risk and the ability to exchange the asset all over the world at current physical market prices, buying physical precious metals is the better decision. 

Paper metals and physical metals are vastly different products. If you are looking to buy actual physical bullion at the current low price, GoldClub Direct offers renowned products with very low premiums. Explore our website or call us at 1-800-700-4715.

 

All Updates and Market info are provided as a third party analysis and do not necessarily reflect the explicit views of GoldClubDirect LLC.. and should not be construed as financial advice.

Government vs Private Mints

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Precious metals have been mined for thousands of years all over the world. After being extracted from the earth, these metals must be refined and processed to separate any and all impurities. Once the precious metals have been processed, they can be taken to refineries and mints worldwide to produce bars, coins, or other variations of precious metal products. There are two main types of mints that investors should know about, government mints and private mints.

 

Government Mints

Government, or sovereign, mints are controlled by the national government in which they operate. The main product these mints produce is coinage. Coins produced at sovereign mints are considered legal tender or otherwise commemorative. Each coin has a face value, enabling its use as currency. For precious metals, the intrinsic precious metal value of the coin usually is more than the face value, so they are rarely used as actual currency. Coins minted at government mints come with guaranteed metal purity and specialized security measures to provide authenticity as needed.

The United States Mint is one of the largest mints in the world. They have production facilities in Philadelphia, San Francisco, Denver, and West Point, with a bullion depository in Fort Knox and headquarters in Washington D.C. Products from the US Mint include mintmarks depicting where the coin was minted. A “P” is from Philadelphia, a ”S” is from San Francisco, a “D” is from Denver, and a “W” is from West Point. One of the US Mint’s most popular programs is the American Eagle, which includes gold, silver, platinum, and palladium coins. Other examples of sovereign mints include the Royal Canadian Mint, Perth Mint, Austrian Mint, Chinese Mint, and Royal Mint. Sovereign mints produce some of the most popular products, like the Canadian Maple Leaf, Austrian Philharmonic, Chinese Panda, UK Britannia, and South African Krugerrand. Sovereign coins usually carry a higher premium over spot price due to their collectibility. 

 

Private Mints

Private mints are owned by companies that produce non-governmental bullion products. The main two categories of products private mints create are bars and rounds. If you would like to learn more about the difference between coins and rounds, read our blog discussing this matter. Since there is no government directing their production, they are able to create products with their own branding and design. There are more variations with private mint products, as they can also be any weight, shape, purity, and metal content. There is still some regulation, as private mints must abide by the standards set by the London Bullion Market Association (LMBA) to be authorized for trading.

There are many prestigious private mints around the world. GoldClub Direct offers products from Credit Suisse, Valcambi, SilverTowne Mint, and others. These mints are well-renowned worldwide and offer great quality bullion at low prices. Private mint products tend to have a lower premium as their standards are not as strict as sovereign coinage. 

 

Should I buy from a government mint or a private mint?

Buying from a sovereign mint vs. a private mint is up to individual preference. Products from a sovereign mint will be a good addition to a portfolio for an investor that is looking for legal precious metal coinage backed by a national government. Products from private mints are well suited for investors who are looking to invest in precious metals with the lowest possible premium. GoldClub Direct stocks products from only the most respected government and private mints.

 

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