2022 had one of the highest rates of inflation in the US, and 2023 continues to bring many challenges to the average American.
As a result, now is the time to start preparing for tougher times ahead. One can expect inflation to strike us again and again.
But with proper protection, one doesn’t have to suffer the pain of these strikes.
Investing in American precious metals is one of the most popular methods for combating inflation.
This detailed guide will share the best investment approaches to strategies.
Table of Contents
1. Buy Gold and Silver
The first step is to find a dealer to buy gold and silver. The best dealer will offer bullion by post so you can buy precious metals from the convenience of your home.
Gold and silver should always be the priority when preparing for inflation. Gold is a store of value. For example, one ounce of gold is close to $2,000 at the time of this writing.
As a result, you can hold a lot of cash just by owning a few ounces of gold. While you can sell gold, this should only be considered if you need emergency cash.
It would be best if you held gold for the long run. Having gold reserves ensures you have a store of wealth recognized everywhere.
Silver is better for investing and spending. Silver is often cheaper than gold, so it’s easier to stack silver bullion. You can use silver as an investment asset.
For example, silver has many industrial uses, such as cell phone batteries. As a result, many industries are willing to pay lots of money for a stack of silver bullion.
During hyperinflation, silver coins are a great alternative to fiat currency. Use gold to store wealth and silver to build wealth and spend money.
2. When to Sell Precious Metals
As you grow your bullion stack, you’ll wonder if and when you should sell.
Selling your precious metals is great for earning a lucrative income. It’s perfect when you need lots of cash for an emergency scenario.
But, of course, as mentioned in the previous section, you must also hold onto your precious metals. Sometimes, you’ll have to refrain or even restrain yourself from selling them for a profit!
Consider the urgency of exchanging precious metals for cash. For example, you have an emergency medical procedure.
Suppose you need to pay $10,000 for this procedure and don’t have the money. You could sell five ounces of gold bullion to earn this money.
But is there an alternate way to get this money? Are you able to pay via a payment plan? Does your insurance provider cover part or all of the medical fees?
If any of these are an option, then hold off on selling your precious metals. This should only be done if there’s an absolute emergency and you have no other options.
3. Is Platinum Worth It?
After gold and silver, platinum is one of the most popular precious metals. On average, platinum is more expensive than silver but cheaper than gold.
At the time of this writing, platinum prices range between $900 to $1,000 per ounce. The average investor is often unsure if they should buy or sell platinum.
It has the advantages of both gold and silver. Its high price makes it a great store of value. Platinum also has many industrial uses, so it’s also perfect as an investment asset.
However, even with these advantages, there are major cons with platinum. It’s not as liquid as gold and silver. So while it has industrial uses, it can be challenging to find a buyer.
While platinum is often priced high, it’s also volatile. You might buy one ounce for $900 today, for example. Tomorrow, it might crash down to $700 per ounce.
If you decide to invest in platinum, you must take extra precautions.
4. Get a Few Rare Gold Coins
Your main focus is to buy new precious metals. For example, it’s better to buy a 2023 gold or silver American Buffalo than one from 2020.
However, a great way to increase wealth is to have a few rare gold coins. This is a great way to store value and may help you earn a profit later.
Pre-1933 gold coins are among the rarest in the US. This is because gold was confiscated in 1933, and The Federal Reserve melted many gold coins.
Many of these are available from bullion dealers and can be shipped to your door. These are generally more expensive but are a favorite among collectors.
5. Storing Precious Metals
As you grow your stack, you have to consider different storage methods. This is one of the most important investment strategies for beginners.
Seasoned investors give a lot of importance to storage. You must do the same even if you only own a few ounces of gold and silver.
It’s always good to have some precious metals in your home. Invest in a great safe for storing these precious metals. This safe should be for coins and lighter bars.
You should be able to easily remove and transport these precious metals from your safe if needed.
Otherwise, use vaults and offshore storage systems to store larger amounts of gold.
Make sure you speak to a financial advisor and a lawyer on how to invest and store your precious metals in compliance with the law.
Invest in American Precious Metals Today
Now you know the most popular investment strategies for American precious metals.
Gold and silver should always be part of your investment strategy. Gold is for storing wealth. Silver is an asset and can also be used as a currency.
Platinum has advantages but also carries major risks. You have to take extra precautions. Rare gold coins are expensive but can be a lucrative investment asset in the long run.
The final step is to have multiple places for storing your precious metals. Always consult professional advice before investing in precious metals.
Ready to grab your gold? Check out our other investment articles on our blog.