The best way to make investment in the gold market and get involved in it is the buying of e-gold. Everybody wants to choose the best financial solution for his money and the investment scheme that will guarantee the biggest gains and the surest way to get there. There are many investment solutions on the market and as many investment schemes: you can invest your money in stock, in real estate, in mutual funds, gold investment companies. You can choose to invest your money yourself or you can trust your funds to a specialized broker whose job is to find the best solution for you.
During times where you notice that silver is reasonably-valued or undervalued in terms of 1) historical inflation-adjusted price, 2) gold-to-silver ratio, and 3) current AISC of silver (and silver companies not making a lot of free cash flow), it makes sense to have some silver exposure.
Government and municipal bonds may also provide relatively safe investment opportunities. Government bonds are thought to be among the safest investments because the money is backed by the U.S. government, but that won’t safeguard you against changes in interest rates. Municipal bonds, on the other hand, have a larger risk in that the issuer could default, so if, say, a city files bankruptcy, you may end up losing out on any future interest you would have earned, although you’ll get your money back.
If buying bars and coins from a dealer, compare the mark-ups among a number of them. If you intend to hold precious metals for only a few years, compare the total mark-up and mark-down costs versus the estimated management fees you will pay for owning an ETF or closed-end fund. For example, if you buy and sell an American Buffalo your total cost could be 13% of your investment. In comparison, it could take 20 years to pay the equivalent costs in management fees.
But by far the bulk of the world’s gold bullion is doing precisely what assets should do in any smart wealth-management strategy: storing value securely over the long term as a hedge against the slings and arrows of markets in financial instruments such as stocks, bonds and the like.