How to invest in gold and silver
Knowing about the unreliable angle of fiat currencies could push you to look for ways on how to invest in gold and silver. Of course, you wouldn’t want to be badly affected with the collapse of fiat money that you use, and the best way to protect yourself is to have enough gold and silver to shield you from a bitter financial downfall.
The first idea you would probably think about is to buy sufficient gold and silver, which you can keep in your own safe reserve. Say, you’re having problems with your fiat currency and you have enough gold and silver with you, you can simply sell them up for enough cash to cushion you.
This could also be very beneficial when a gold standard currency becomes available for you since unlike commodities, you can easily trade your precious metals for it.
Before you invest in silver or gold, however, you need to consider several things:
- Where are you going to store them?
- Do you have a secure vault in your home or somewhere more difficult to find by thieves?
- What will you use the gold for?
- Who will accept your gold as money?
- Can you afford to pay premiums and taxes?
- Don’t you think you’re better off with gold jewellery than gold bullion?
If, in the end, of your due diligence you still want to pursue investing in physical gold, start searching for a reliable dealer who sells bullion and ingots at the right gold price.
Then, choose from a range of bullion.
- Coins are the most common form of bullion that look like actual coins and are used as currency. There is a limited production of gold coins, however, making them rare and expensive.
- Rounds may look like coins but they lack circular value. The size of the round bullion, however, will impact its value inversely since it is based on precious metal content. So, the smaller the rounds are, the higher their premium rates over spot.
- Bars are popular among investors because of their low premium over spot, similar to rounds. They are also easier to store, stock, and organise. Best purchased in bulk.
Another way to invest in gold or silver is to put your investment in gold mining companies. You just have to choose the best firm where you can trust your investment to, so you can have favourable returns or have your own precious metals.
Aside from the traditional ways of investing, you can also to invest in stablecoins for significant perks.
Stablecoins are cryptocurrencies that are backed by real assets, such as real currencies and precious metals. An example in the crypto space is the USDT coin. Although stablecoins backed by currencies are more popular, there are some that are backed by precious metals, like gold and silver.
Thinking of cryptos running on the blockchain, this goes without saying that stablecoins let gold and silver run on the blockchain as well. As long as you’d invest in the best stablecoins available, you can expect to have gold and silver as an efficient currency without problems.
You just have to look for the right stablecoin that could promise a good return on your investment, with Kinesis as one of the best options. After which, you’ll have a one-is-to-one ratio of crypto coin to real precious metal in a safe reserve.
Not only that you can rely on it as a good investment, but you can also use your gold for regular transactions. And if the fiat currency you’re currently using falls, you can be sure that gold-backed stablecoins will stay afloat.
Investing in precious metals with Kinesis money
Looking to invest in gold? It will prove one of your best ideas yet. However, investing in stablecoins backed by precious metals is an even better move. This can help you a lot to have a secure investment and experience using gold and silver efficiently for regular daily transactions.
All you need to do is look where to trust your investment to, so you can make sure of having enormous perks from it. This is exactly where Kinesis comes into play. Kinesis is a digital currency that is reliable, usable, and globally accessible. It is backed by gold and silver in the form of KAU and KAG respectively. For every currency you buy, the ratio is as follows:
- 1 gram of gold to your 1 KAU
- 10 grams of silver to your 1 KAG
Investors will receive KAU and KAG upon investing, thus ensuring they own a certain amount of precious metals under their account. Investing in Kinesis can help you have all the gold and silver that you can have, which could be helpful especially when you use them on usual transactions.
The 1:1 allocated gold and silver are insured and kept in third-party vaults that are completely independent of Kinesis. The vaults are audited after every 6 months by third-party holdings. With Kinesis as an investment:
- You have full and direct ownership of the legal title to the bullion
- Fully redeemable
- The bullion you own is sourced from refineries approved by ABX
- Gold bullion is stored in third-party vaults through ABX
Difference between physical and crypto gold
Speaking of value, there is virtually no difference between physical gold and crypto gold. Both of them have proven to be helpful to investors and have been used as speculative investment and a safe-haven asset at certain points.
But in certain aspects, physical and crypto gold have important differences from each other. These include something as basic as the very nature of the assets themselves. Physical gold is tangible, but crypto gold is digital.
For more than 2,000 years, gold has been harnessed as a form of currency. And, as such, its supply increases as miners retrieve more of it from the ground. Once the precious metal is mined from the ground, it is mostly used to create precious goods, such as jewelry. But when it comes to investing in gold, you can purchase it in various forms.
For example, it can come in bullion that you can buy. And, you can gain exposure to gold price movements through different financial instruments, like gold futures and exchange-traded funds. Frequently, physical gold has generated significant attention as a main safe-haven asset, in the same way that many investors look to real estate..
On the other hand, crypto gold is a digital currency. Like physical gold, it is also created through mining. The only difference is that the process is entirely electronic. In essence, crypto gold miners determine transactions and aggregate these transactions into blocks. In turn, these blocks make up the blockchain of the digital currency.
Every time cryptocurrency miners complete a block, new crypto coins are released. Under the protocol that governs cryptocurrencies, new coins are released approximately about every 10 minutes. People will then use these crypto coins to engage in transactions or make investments online. In the world of cryptocurrency trading, crypto gold is backed by physical gold through Allocated Bullion Exchange.
While both have certain differences, they are generally the same in a way that they are equally satisfying and fulfilling to possess. Cryptocurrencies that are backed by gold are completely different from other cryptocurrencies that suffer from the risky speculative investments.
If you are thinking to invest in gold, you will be able to benefit significantly from it by first comparing and contrasting physical gold and crypto gold. It is important to be well-informed, after all.