The Best Way to Buy Gold

Gold coins. Shutterstock

Gold was the standard currency for more than 5,000 years. It was accepted as payment in many countries around the world, and it was a tangible measure of value.

These days, you can pay for just about anything with dollar bills, plastic credit cards, and crypto coins. They’re convenient and portable, and your funds are instantly transferable.

So why would you want to return to the old ways and keep your money in gold?

Gold Protects Your Privacy

The death of the paper fiat currency is near. A growing number of businesses don’t even accept cash anymore. Instead, they are taking credit cards or installing reverse ATMs to take your cash and give you a prepaid debit card.

This means that all of your money—and your transactions—can easily be tracked. Saving money off the radar and out of the system is now a luxury.

Gold is your ultimate private savings vehicle. It is tangible and real, and it doesn’t get tracked digitally. Nobody needs to know everything about your portfolio. Physical gold will ensure they don’t.

Gold Protects Your Purchasing Power

In 1913, you could have withdrawn 30 paper $20 bills or 30 gold $20 Double Eagle coins to buy a nice new car.

Today, with the same 30 gold $20 Double Eagles, you can still buy a new car. However, 30 paper $20 bills will barely buy four car tires.

All fiat currencies lose purchasing power over time due to increased money supply and inflation. Gold has maintained its purchasing power throughout the millennia. The only sound money is gold.

The U.S. dollar has lost 96.4 percent of its purchasing power since 1913. McAlvany Precious Metals

Gold Increases in Value

In a 50-year timespan, physical gold has gained 4,500 percent in value.

Meanwhile, the U.S. dollar’s value has declined by 85 percent in the same time period. In other words, today’s dollar has the purchasing power of just $0.15 in 1971 dollars.

Gold is still one of the most trusted forms of currency. The International Monetary Fund categorizes physical gold as a Tier 1 asset, meaning “risk-free” or “zero-risk.”

Here are just a few highlights of gold’s meteoric rise:

• In 1971, President Richard Nixon ended the U.S. dollar’s tie to the gold standard, turning the U.S. dollar into a true fiat currency with no backing.
• Four years later, in 1975, gold reached $183 per ounce (up from just $35 an ounce)—a 400 percent gain.
• In 1980, gold reached $660 per ounce, a gain of over 500 percent over four years as economic uncertainty and record inflation drove gold prices higher.
• In 2008, the global stock bubble burst and the Great Recession hit. Gold reached $800 per ounce.
• Three years later, in 2011, gold reached $1,900 per ounce, driven by the Great Recession and global stock market collapse. This is a 138 percent increase.
• In August 2020, gold reached a price of $2,070 per ounce, driven higher by the pandemic market collapse and global shutdown.
• In 2023, the price of gold hovers near its all-time high as out-of-control inflation and recessionary fears have driven risk back into the markets.

Why Buy Physical Gold Instead of an ETF?

In an economic or currency crisis, mining shares, exchange-traded funds (ETFs), and contracts, like all paper assets, can lose all their value. With a gold ETF, there is counterparty risk. You are relying on another party to hold up their end of the bargain. Historically during periods of market crashes and instability, the ETF space for metals has had major risks and shortcomings. But physical gold never has. Physical gold is not someone else’s debt and is not part of a system riddled with vulnerabilities.

What Are the Best Ways to Own and Store Gold?

You can own and store physical gold in several different ways, including:

Private possession: The most common acquisition of metals is for delivery to hold the product privately in a location of your choice, such as your home safe.

Retirement account: You can keep gold in several different retirement accounts, including a Roth, traditional individual retirement account (IRA), simplified employee pension (SEP), simple IRA, and 401(k). The metals are stored per Internal Revenue Service regulations, but the storage is incredibly cost-effective. IRAs also provide excellent tax benefits when the values increase.

Vault storage: Metals held in such vaults are insured and very secure. Storage can be domestic or international, and there are storage fees associated with each. McAlvany Precious Metals, for example, can facilitate the opening of storage accounts on your behalf at a number of trusted depositories.

What Are the Best Gold Investments?

You need to know which investment best addresses your motivation, horizon, goals, and concerns. Here are some typical gold investments and points to consider:

Bullion coins and bars: Bullion coins and bars are very liquid and have the narrowest spreads. They trade at a slight premium over the spot price of their metal content.

Semi-numismatic coins: Their value is derived from the spot price of the metal, their rarity, and their condition. They have narrower spreads than numismatic coins, and they offer investors a balance between liquidity, security, and privacy. They also offer an added profit potential due to their premium fluctuations.

Numismatic coins: A numismatic coin’s value is based on its rarity, age, condition, and demand in the marketplace. The spot price of gold plays a small part in the price of each coin, and premiums are higher than those of semi-numismatic and bullion coins due to their very limited supply. Numismatic coins may offer investors greater privacy and protection and are often generational coins for collectors.

How to Start Investing in Gold Now

McAlvany Precious Metals offers COMEX- and NYMEX-approved forms of physical gold, as well as other precious metals in coins and bars. Each account is personally managed by experienced advisors who can help determine which precious metals are right for your unique objectives.

McAlvany Precious Metals offers secure storage of gold and other precious metals.

You have the option to securely store your gold in the most reputable and reliable independent vault storage facility in the United States. Your metals can be segregated or non-segregated, and our fees are very competitive. Storage is fully insured and not part of the U.S. banking system.

Or you can choose to store your gold internationally in our high-security, segregated vaults in Zurich, Switzerland, or Toronto, Canada. Fees are comparable to U.S. fees, and the storage is fully insured.

When you buy gold and other precious metals through McAlvany, you are covered with our Triple Protection Policy:

• Guaranteed authenticity and grade of gold;
• Guaranteed repurchase of coins at the same grade and prevailing market price; and
• All coins are personally inspected and individually selected by our in-house numismatist.

McAlvany offers zero commitment, no-obligation consultations with our expert advisors to help you find the right investment strategy.

To get started, contact us for a free consultation at 1-800-525-9556.

The Epoch Times takes no responsibility for the claims, promises made, or the quality/reliability of the products or services offered herein.