For many folks thinking about investing in bullion, many are wondering if they need a gold investing guide to make their way through what they perceive is a quagmire of high spot prices and instability. One of the first things I would caution against is assuming that precious metals are systemically unstable in terms of price. The second area of caution I would suggest is thinking that investing in precious metals is outside the scope of your budget.
Price History of Precious Metals
If we consider the history of silver and gold, over the long term we see that their prices are actually quite stable. One of the misunderstandings about silver and gold is that over the past decade we have seen their spot prices skyrocket because of their own innate instability. This is not the case, though. If you consider their price changes in light of the monetary policies of government, you will see parallel price changes in concert with fiat money and central bank activities. In other words, the spot prices of precious metals reflect outside economic forces. Granted, commodities are also based on supply and demand, but even this has been distorted by government and big business.
Getting into Precious Metals on a Budget
Even with the high price of gold, it is still quite possible to invest on a budget. Think about all of the pawn shops you see with banner signs declaring that they will buy your old gold. The reason they do this is because they know that scrap gold is a great way to get into gold for less than the spot price. You can do this too. I suggest going to garage sales, estate sales, and even the occasional antique mall and looking around for old gold and silver jewelry. In addition to these, old gold and silver coins are also viable ways to get your hands on precious metals.
In short, clearing away any misconceptions you have about investing in precious metals is going to to go a long way towards getting you where you need to be. Keep in mind that precious metals are a long term investment, and that weathering through price changes over time will be an exercise in patience that will be very profitable. For more information on investing in precious metals on a budget, check out some of the other blogs and sites online that give some helpful, and free, information.