Starter Guide to Investing: Stocks, Crypto & Precious Metals

An online brokerage account likely offers your quickest and least expensive path to buying stocks, funds and a variety of other investments. With a broker, you can open an individual retirement account, also known as an IRA — here are our top picks for IRA accounts — or you can open a taxable brokerage account if you’re already saving adequately for retirement elsewhere.

These are the two brokers that I use:

Robinhood

We'll use Robinhood for our investing in this course.

TD Ameritrade

I recommend using TD Ameritrade to open a Roth IRA account, which lets your investments grow tax-free.

TD Ameritrade also followed suit after Robin Hood established the new baseline of commission-free trades.

* Note: You'll want to open an "individual brokerage" account, where you'll be able to trade both stocks & options

Special Account Types

* This is applicable to the United States

Roth IRA

Definition: "A Roth IRA is a retirement savings account that allows your money to grow tax-free. You fund a Roth with after-tax dollars, meaning you've already paid taxes on the money you put into it. In return for no up-front tax break, your money grows and grows tax free, and when you withdraw at retirement, you pay no taxes."

IRA

Definition: "IRA stands for Individual Retirement Account, and it's basically a savings account with big tax breaks, making it an ideal way to sock away cash for your retirement. A lot of people mistakenly think an IRA itself is an investment - but it's just the basket in which you keep stocks, bonds, mutual funds and other assets."

401(k)

Definition: "A 401(k) is a retirement savings plan sponsored by an employer. It lets workers save and invest a piece of their paycheck before taxes are taken out. Taxes aren't paid until the money is withdrawn from the account."

You'll need to deposit funds before you can begin investing (no risk, no reward!).

Robin Hood

The big draw of Robin Hood is how easy it is to use. Making a deposit is no different.

1. Tap the Account icon in the bottom right corner.

2. Tap Transfers.

3. Tap Transfer to Robinhood.

4. Choose the account you’d like to transfer from.

5. Enter the deposit.

6. Swipe Up.

They also support Instant Deposits & Automatic Deposits.

Instant Deposits

You’ll receive up to $1,000 in instant deposits.

The settlement time for any deposit larger than $1,000 will be up to five business days. Although you get instant access to funds, the ACH withdrawal could happen up to five business days after you initiate the transfer.

Automatic Deposits

1. You can set up automatic transfers into your Robinhood account on your mobile app:

2. Tap the Account icon in the bottom right corner.

3. Tap Transfers.

4. Tap Automatic Deposits.

5. Choose your schedule.

6. Enter the amount you want to deposit each time.

TD Ameritrade

Deposit funds electronically

1. Log into your account

2. Choose Accounts, then “Deposit/Withdraw.”

3. Under “Select a transaction,” choose “Deposit to TD Ameritrade,” then choose “Electronic (ACH)*.”

Deposit funds via wire

1. Log into your account

2. Choose Accounts, then “Deposit/Withdraw.”

3. Under “Select a transaction,” choose “Deposit to TD Ameritrade,” then choose “Wire”—wire instructions will be provided.

Other Methods:

• Deposit funds via check

• Transfer investments from another financial institution

A stock is defined as a share of ownership of a publicly-traded company that is traded on a stock exchange. Common stocks are securities, sold to the public, that constitute an ownership stake in a corporation. They come in all sizes -- you can invest in a large, global company, like IBM (IBM), or a smaller, micro-cap company that shows potential for profit.

When you buy a share of a stock, you automatically own a percentage of the firm, and an ownership stake of its assets. If you paid $100 for a share of stock, and the stock appreciates in value by, say, 10% during the period you own it, you've earned $10 on your stock investment.

That's the idea behind buying stocks -- to invest in solid, well-managed companies that turn a profit. A company that succeeds on those fronts stands a good chance of its stock price growing in value, while the company, in going public, makes use of the proceeds of the original stock sale to reach growth goals and manage operating expenses. The company can use the cash to invest in new markets, research new products, hire more workers and better advertise their products and services, among other things.

What is the Stock Market?

There really isn't just one single stock market -- there are many stock markets around the world, although the most well-known include the New York Stock Exchange (NYSE), Nasdaq, and the London Stock Exchange (LSE).

Stock markets are public trading venues that enable investors of all stripes to buy, sell and issue stocks on an exchange, or via over-the-counter (OTC) trading. An OTC market is "A decentralized market, without a central physical location, where market participants trade with one another through various communication modes such as the telephone, email and proprietary electronic trading systems."(according to Investopedia).

A fair, open and efficient stock market is vital to the proper trading of stocks around the world -- to the publicly-traded companies whose stocks are traded, and to the investors who buy and sell stocks. Companies gain access to capital by issuing stocks, and investors have a place to safely and accurately trade securities.

The stock market also has indexes that track the performance of a specific group of stocks. For example, the Dow Jones Industrial Average is the price-weighted average of 30 of the largest companies in the world, including 3M (MMM), Disney (DIS), and Exxon (XOM).

Stock indexes provide investors with a capsule to look at a specific group of stocks at a single time. Chances are, if the Dow Jones Industrial average is "up" for the day, then the entire stock market is generally up, as well.

Why Would You Buy Shares of Stock?

• To make money. When stocks appreciate in value and are worth more than the investor paid to buy the stock, that's a positive outcome for investors.

• To earn dividend payments. When a publicly-traded company pays out dividends to shareholders, that adds value (and income) for the shareholder.

• To gain influence at a company. Stock market shareholders have the ability to vote on company matters and key issues.

• To outflank inflation. Inflation eats into income. Thus, making money on stocks helps investors stay ahead of inflation.

• To save for retirement and other long-term financial objectives. Since stocks appreciate over time, much more so than bonds or bank deposits, they are a great tool for investors looking to save for the long-haul -- especially for retirement.

Why Would You Sell Shares of Stock?

• To make a profit. You buy a stock for $10 per share and six months later, it's worth $20 per share. That's a good reason to sell stocks -- to make a profit.

• The stock represents too much risk. Often, people sell stocks to reduce risk. For example, if shares have grown so much that the stock represents a major portion of an investor's portfolio, an investor may sell some or all of those shares to reduce that risk and create a more-balanced, or diversified, portfolio.

• You are worried about the company. Sometimes, company fundamentals change and you don't have the same positive outlook you had on the stock when you bought it. It could be a scandal at the company, a new CEO, or bad news on the financial front. Each could be enough for someone to sell their stock.

• You need the money. If you have short-term cash needs -- paying for a child's college tuition, buying a home, or starting a business, for example -- selling a stock can give you an immediate cash infusion.

• You like another stock better. Often, investors sell shares of stock so they have the cash to buy another stock that they believe offers better value.

What Does a Stock Price Mean?

A stock price is the absolute measure of a company's worth to investors. For most investors, the goal is to "buy low and sell high." In that regard, a stock price also represents what other investors will pay to buy a stock at a specific time. That's why indexes track stock prices so closely -- they give investors the price other investors recently paid to buy a stock and provide a financial framework to ascertain a stock's worth and value.

Stock market participants and investment industry professionals also use a stock price to mark the financial health of a publicly traded company.

Summary

Stocks are a historically-proven way to make a financial profit, and rank well ahead of other securities in terms of performance returns.

Buying a Stock

1. Navigate to the stock’s Detail page.

2. Tap Trade.

3. Tap Buy.

4. Tap Order Types in the upper right order.

5. Select your preferred order type.

6. Confirm your order & Swipe up to submit it

Selling a Stock

1. Navigate to the stock’s Detail page.

2. Tap Trade.

3. Tap Sell

4. Change order type if necessary

5. Confirm your order.

6. Swipe up to submit your order.

* Note: I recorded a video and realized there's no way I can do as good of a job as "The Plain Bagel" did in explaining options, so definitely check his video out.

? TOOL: Options Profit Calculator »

An option is a contract between a buyer and a seller. These contracts are part of a larger group of financial instruments called derivatives. This means that the instrument is derived from another security–in our case, another stock.

Options Versus Stocks

Options are a way to actively interact with stocks you’re interested in without actually trading the stocks themselves. When you trade options, you can control shares of stock without ever having to own them.

First, we need to understand how options Contracts work:

Contracts

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It’s important to also keep in mind that contracts are typically for 100-share blocks. In the above example, you’d be entitled to buy 100 shares of MEOW at the agreed-upon strike price.

Though options contracts typically represent 100 shares, the price of the option is shown on a per-share basis, which is the industry standard.

There are only two kinds of options: “put” options and “call” options. You’re likely to hear these referred to as “puts” and “calls.” One option contract controls 100 shares of stock, but you can buy or sell as many contracts as you want.

Call Options

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Terminology: "Calls"

When you buy a call option, you’re buying the right to purchase from the seller of that option 100 shares of a particular stock at a predetermined price, which is called the “strike price.” You have to exercise your call by a certain date or it expires.

To purchase a call option, you pay the seller of the call a fee, known as a “premium.” When you hold a call option, you hope the market price of the stock associated with it will increase in the near future.

Why?

If the stock price increases enough to exceed the strike price, you can exercise your call and buy that stock from the call’s seller at the strike price, or in other words, at a price below the stock’s market value. Then you can either keep the shares (which you obtained at a bargain price) or sell them for a profit.

But what happens if the price of the stock goes down, rather than up?

You let the call option expire and your loss is limited to the cost of the premium.

Put Options

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Terminology: "Puts"

When you buy a put option, you’re buying the right to force the person who sells you the put to purchase 100 shares of a particular stock from you at the strike price.

When you hold put options, you want the stock price to drop below the strike price. If it does, the seller of the put will have to buy shares from you at the strike price, which will be higher than the market price.

Because you can force the seller of the option to buy your shares at a price above market value, the put option is like an insurance policy against your shares losing too much value.

If the market price instead goes up rather than down, your shares will have increased in value and you can simply let the option expire because all you’ll lose is the cost of the premium you paid for the put.

Additional info:

The Strike Price

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The strike price of an options contract is the price at which the options contract can be exercised.

Think of the strike price as the anchor of your contract: If you’re buying a call, your call is profitable if the value of the stock goes above the strike price (plus whatever premium you paid). If the value of the stock stays below your strike price, your options contract will expire worthless. Remember, you’re not actually buying shares of the stock unless you exercise your contract. This is because the contract gives you the option to buy the actual shares of the stock at the strike price.

Buying and Selling an Options Contract

• Buying to open an options position means that you’re purchasing the contract. You’re the owner, and have the right to place an order to sell the contract back into the market, to exercise the contract, or to let it expire.

• Selling to close a position means that you’re selling a contract that you own back into the market.

• Selling to open an options contract means that you’re selling the contract to a buyer to collect a premium. You have the obligation to make good on the contract if you’re assigned, or you could buy it back in the market.

• Buying to close an options position means that you’re buying back a contract that you sold. In this case, you cannot be assigned on the contract you initially sold.

Exercise and Assignment

The owner of an options contract has the right to exercise the contract, let it expire worthless, or sell it back into the market before expiration. The owner of the contract is likely to exercise the contract if it’s “in the money.” On the other hand, the person who sold the contract to collect the premium is assigned when the owner of the contract exercises it.

When to Buy or Sell

When opening a position, you can either buy a contract with the intention of exercising it when it reaches its strike price, or you can sell a contract to collect the premium and hope to not be assigned. Buying an options contract makes you the owner/holder of the contract, and in return for paying the premium, you have the right to choose to either exercise the contract, let it expire worthless, or sell it back into the market before expiration. The seller of an options contract collects the premium paid by the buyer, but is obligated to buy or sell the agreed-upon shares of the underlying stock if the owner of the contract chooses to exercise the contract.

• Buying to open a call: You expect the value of the stock to rise; you pay the premium; you have the right to buy 100 shares at the strike price if you exercise.

• Selling to open a call: You expect the value of the stock to drop or stay the same; you collect the premium; you have the obligation to sell 100 shares at the strike price if you’re assigned.

• Buying to open a put: You expect the value of the stock to drop; you pay the premium; you have the right to sell 100 shares at the strike price if you exercise.

• Selling to open a put: You expect the value of the stock to rise or stay the same; you collect the premium; you have the obligation to buy 100 shares at the strike price if you’re assigned.

The Premium

Since the owner has the right to either exercise the contract or let it simply expire worthless, she pays the premium–the per-share cost for holding the contract–to the seller.

As a buyer, you can think of the premium as the price to purchase the option. If you buy or sell an option before expiration, the premium is the price it trades for. You can trade the option in the market the same way you’d trade a stock.

The premium is not arbitrary, as it’s tied to the value of the contract and the underlying security: the underlying stock’s price, the underlying stock’s volatility, and the amount of time left until expiration all influence an option’s premium.

Rights and Obligations

The owner has the right to exercise the contract or not, whereas the seller has the obligation to make good on the contract if she’s assigned. When the owner of the contract exercises it, the seller is assigned.

Time Value

The closer an option is to expiring, the less time value the option will have.

The further away a contract is from its expiration date, the more potential there is for price movement, which would make the contract trade at a higher price.

The Break-Even Point

The break-even point of an options contract is the point at which the contract would be cost-neutral if the owner were to exercise it.

It’s important to consider the premium paid for the contract in addition to the strike price when calculating the break-even point.

This covers buying & selling crypto in Robin Hood:

Calls Explained

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Why Buy a Call

Buying a call is similar to buying stock. You want the price of the stock to go up, making your option worth more, so you can profit.

Why would I buy a call?

When buying a call you’re paying for the option to purchase stock. Since an option is typically for 100 shares of a stock, you’re able to pay less money with the opportunity for higher returns.

How do I make money from buying a call?

After buying, your portfolio value will include this option and its price will change similar to the way a stock’s price changes, meaning its value can go up or down.

You can either sell the option itself for a profit, or wait until expiration to exercise it and buy 100 shares of the stock at the stated strike price per share.

What are the risks?

Once you buy an option, its value goes up and down with the value of the underlying stock. If the stock’s value doesn’t go up enough, your call may expire worthless. However, you’ll never lose more than the price you paid to buy the call.

How risky is each call?

The riskier a call is, the higher the reward will be if your prediction is accurate.

A call option with an expiration date that is further away is less risky because there is more time for the stock to increase in value.

For buying calls, higher strike prices are also typically riskier because the stock will need to go up more in value to be profitable.

• High Risk, Short Term: Best if you have a strong, short term belief that the stock will go up.

• Medium Risk, Medium Term: Best if you expect the stock to steadily climb higher over the next couple of months.

• Low Risk, Long Term: Best if you have a long term belief in the stock. Considered a cheaper way to buy 100 shares.

Choosing a Call

Break-Even price

The break-even price is the price a stock needs to reach when your contract expires so that you don’t lose money on your investment. Your break-even point is the strike price plus the price you paid for the option.

Strike price

The strike price is the fixed price that you’ll pay per share if you choose to exercise your option and buy the 100 shares. You want the stock price to go above the strike price so you can buy the stock for less than what it's currently trading at.

How do I choose the right strike price?

You should be confident that the stock will at least reach the break-even price between now and the time of expiration. Generally, a higher strike price is cheaper, but you’re at a higher risk of the option becoming worthless. A lower strike price is more expensive, but you’re at a lower risk of losing your money.

Expiration date

Unlike stocks, option contracts expire. When you buy a call, the expiration date impacts the value of the option contract because it sets the timeframe for when you can choose to sell, or exercise your call option. If a contract is not sold or exercised by expiration, it expires worthless.

How do I choose the right expiration date?

The further away the expiration date is, the more money you’ll pay for the contract, but the more time the stock has to reach your break-even price.

Calls at Expiration

What happens at expiration when my stock is near or above the strike price?

If your stock is above or near the strike price at expiration, Robinhood will automatically exercise or sell it for you, so you don’t need to worry about checking the app.

If you have enough money to buy the shares, Robinhood will automatically exercise the option and purchase the shares at the stated strike price.

If you don’t have enough money to buy the shares, Robinhood automatically sell the option back to the market a few hours before market close so you can recover the market value of the call option.

Generally, the call option will be worth at least as much as buying the stock at the stated strike price and immediately selling it in the market.

What happens at expiration when my stock is below the strike price?

If your stock doesn’t rise above your strike price by expiration, it’s considered to be out of the money. If your option isn’t sold back to the market, it will simply expire and you’ll lose the entire amount that you paid for the contract, but nothing more.

Puts Explained

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Why Buy a Put

Buying a put is similar to shorting a stock. When buying a put, you want the price of the stock to go down, which will make your option worth more, so you can make a profit.

Why would I buy a put?

You’d buy a put because you’re able to make a profit on a stock going down. You’re able to do this by paying for the option to sell 100 shares of stock at a certain price. If the price of the stock goes below that price, you can sell it for more than it’s worth.

How do I make money from buying a put?

After buying, your portfolio value will include this option and its price will change similar to the way a stock’s price changes, meaning its value can go up or down.

You can either sell the option itself for a profit, or wait until expiration to exercise it and sell 100 shares of the stock at the stated strike price per share.

What are the risks?

Once you buy an option, its value goes up and down with the value of the underlying stock. If the stock’s value doesn’t go down enough, your put may expire worthless. However, you’ll never lose more than the price you paid to buy the put.

How risky is each put?

The riskier a put is, the higher the reward will be if your prediction is accurate.

A put option with an expiration dates that is further away is less risky because there is more time for the stock to decrease in value.

For buying puts, lower strike prices are also typically riskier because the stock will need to go down more in value to be profitable.

• High Risk, Short Term: Best if you have a strong, short term belief that the stock will go down.

• Medium Risk, Medium Term: Best if you expect the stock to steadily fall lower over the next couple of months.

• Low Risk, Long Term: Best if you have a long term belief that the stock will go down.

* Note: The audio was not recorded due to an issue during recording.

Short & sweet, this is how I made +300% returns (or more) in the weeks following the Coronavirus news

$SPY Puts

Experts Publish Daily Videos

Financial experts (& hobbyists) publish daily videos to YouTube with various approaches to technical analysis (usually based on that day's trading data).

I make a habbit of listening & learning EVERY DAY to improve my personal process.

I'd highly recommend doing the same. No one can predict the future, but it's a great idea to listen to people who are experts in their field & their opinions & projections for the futures on the markets.

Cryptocurrencies such as Bitcoin are digital currencies not backed by real assets or tangible securities. They are traded between consenting parties with no broker and tracked on digital ledgers.

Track Crypto markets at large @ Coin Market Cap

Cryptocurrencies

Cryptocurrencies are digital currencies, created and stored electronically in the blockchain using cryptography (hence “crypto”) to control their creation and to verify the transfer of funds. Cryptocurrencies are unique because they don’t have any physical form and exist only in the network. Their supply, or circulation, isn’t determined by any central bank or government, and the network itself is completely decentralized. There are a growing number of cryptocurrencies, but the most popular to date are Bitcoin, Ethereum, and Litecoin.

Blockchain

A blockchain is a digital, decentralized ledger of cryptocurrency transactions. The Bitcoin and Ethereum networks are both blockchains where all transactions are recorded. Where assets tied to governments were formerly backed by gold or silver, Bitcoin and Ethereum are backed by their respective networks. A typical cryptocurrency transfer is first published to the blockchain, where it’s then securely verified by multiple sources in the network. Once a transfer is confirmed by several sources and verified for all to see, it’s accepted by the network. Since the blockchain verifies the transfer of assets, you no longer need to go through a bank to initiate a transaction.

Volatility in Crypto

The prices of cryptocurrencies are volatile largely because they’re a new asset class, and there’s no consensus on their overall worth as a currency or investment.

Estimated Buy and Sell Price

The difference between the estimated buy and sell price is called the spread. The size of the spread is a measure of the liquidity of the market, or how quickly and easily you can convert between cash and this cryptocurrency. Typically, if more people are trading a cryptocurrency, it'll be easier to find someone willing to trade with you. This is why you may see smaller spreads for better known cryptocurrencies like Bitcoin, and larger spreads for lesser known cryptocurrencies.

Trading Times

You can invest in cryptocurrencies 24/7 on Robinhood Crypto, with the exception of our daily downtime for site maintenance. You’ll be notified in-app about scheduled maintenance windows and their duration. During a maintenance window, you can place orders to buy or sell cryptocurrencies, but they won’t execute until the maintenance window is finished. Furthermore, all pending orders will remain pending during this time.

Note: Cryptocurrencies are not stocks and your cryptocurrency investments are not protected by SIPC.

Bitcoin

Bitcoin, created in 2009, is the first decentralized cryptocurrency. Like many cryptocurrencies, it’s not tied to any government or issuing authority, and there’s no middleman involved when it’s used to purchase goods. Most of its concepts have been applied to other fields, and replicated in other cryptocurrencies. Bitcoin denotes both the name of the network and the currency that’s built on top of it. Its symbol is BTC. Bitcoins are a tradable asset on Robinhood. You can buy and sell fractions of BTC. The minimum order size is 0.00001 BTC. Keep in Mind: Bitcoin is not a stock and your cryptocurrency investments are not protected by SIPC.

Bitcoin Cash

Bitcoin Cash, launched in 2017, was created as an offshoot of Bitcoin that allows faster transactions on the network. Similar to Bitcoin, Bitcoin Cash is capped at 21 million coins. Its symbol is BCH. Bitcoin Cash is tradable on Robinhood, and you can buy and sell fractions of BCH. The minimum order size is 0.00001 BCH, and the smallest amount you can buy or sell is 0.00000001 BCH. Bitcoin Cash is not a stock and your cryptocurrency investments are not protected by SIPC.

Dogecoin

Dogecoin, introduced in 2013, is known for its playful take on the cryptocurrency phenomenon. It’s typically used in online communities to “tip” users for content that’s particularly witty or useful. It’s also become a popular cryptocurrency for donating to charities. Dogecoin’s symbol is DOGE. Dogecoin is tradable on Robinhood. The minimum order size is 10 DOGE. We don’t offer fractional Dogecoins.

Ethereum

Like Bitcoin, Ethereum is a digital currency based on a blockchain technology. Though the applications of Ethereum extend beyond currency, the coin, technically called an Ether, is a tradable asset on Robinhood. Its symbol is ETH. You can buy and sell fractions of ETH. The minimum order size is 0.001 ETH, and the smallest allowable quantity increment is 0.000001 ETH. For example, you can place an order for 0.001001 ETH, but not 0.000999 ETH

Ethereum Classic

Ethereum Classic is the original Ethereum blockchain. On July 20th, 2016, Ethereum executed a “hard fork,” which means that the single Ethereum blockchain split into two distinct blockchains. As a result of this split, what was once simply referred to as Ethereum became Ethereum Classic, and the newly created blockchain is now referred to as Ethereum. All transactions on both blockchains are identical up until the hard fork at block 1920000. Starting at the split, the two cryptocurrencies began living on separate blockchains.

Litecoin

Litecoin was launched in 2011 as an alternative cryptocurrency to Bitcoin. Like Bitcoin, it’s based on blockchain technology. Litecoin has quickly become one of the most popular cryptocurrencies because of its fast transfer confirmation times when compared to Bitcoin. Its symbol is LTC. Litecoin is tradable on Robinhood, and you can buy and sell fractions of LTC. The minimum order size is 0.001 LTC, and the smallest amount you can buy or sell is 0.00000001 LTC.

Buying a Cryptocurrency

1. Navigate to the cryptocurrency’s Detail page.

2. Tap Buy.

3. Enter the amount of BTC to buy

4. Confirm your order.

5. Swipe up to submit your order.

Congratulations! You now own Bitcoin ?

Selling a Cryptocurrency

1. Navigate to the cryptocurrency’s Detail page.

2. Tap Sell

3. Enter the amount of BTC to sell

4. Confirm your order.

5. Swipe up to submit your order.

Congratulations! You now own Bitcoin ?

Every investor portfolio should contain an allocation to precious metals. You’ve taken the first step toward ensuring your financial future by reading this primer on how to buy precious metals.

With all of the uncertainty in today's global economy, it has never been more important to diversify and add the security of physical precious metals to your investment strategy.

What Is the Best Way to Invest in Precious Metals?

You can invest in precious metals by buying the physical metal like bullion bars and bullion coins or through financial products such as gold exchange-traded funds (ETFs).

Each method has advantages and disadvantages.

While investing in precious metals through ETFs sounds appealing due to its convenience, there are several key issues that investors need to be aware of in relation to this method of investment.

For example, if you invest in gold through an ETF, you don’t actually own the metal. You have no claim on the gold within the fund. This means that you cannot take delivery of the metal if the need arises.

In contrast, the key advantage of buying physical gold (such as bars and coins) is that you own the gold. Furthermore, you own an asset that can be stored outside the financial system, which reduces counterparty risk.

Counterparty risk is the risk that the other party in an agreement will default or fail to live up to its obligations. When investors buy gold ETFs, they are relying on financial institutions to deliver on their obligations.

In this regard, buying the physical metal is a more sensible option.

Key Takeaways:

• Investors can get exposure to precious metals in two ways: physical gold (such as bars and coins) or financial products (such as ETFs).

• With a precious metals ETF, you don’t actually own the metal.

Should I Buy Gold Bullion or Silver Bullion?

While both gold and silver have attractive features, gold is the better investment for the average precious metals investor. Gold has a much larger liquid market that is driven mostly by investment and jewelry demand. The price of gold is less volatile than that of silver, too.

Advantages of bullion coins:

• easy to buy

• easy to store

• easy to transport

• easy to sell

Meanwhile, silver is more speculative and has a stronger relationship to economic activity. This is because silver has many industrial uses. As such, silver can be attractive during down cycles when the price of the metal is cheap.

The key advantage of silver is that it’s much cheaper than gold. Therefore, it’s more accessible to small investors.

Key Takeaways:

• Gold is a better investment than silver for most investors.

• Gold’s price is less volatile than silver’s price.

Premiums & Price

The "Premium" is the markup that the dealer keeps as profit.

It can go up with demand is high, for instance, as of writing this on 3/16/2020 during the Coronavirus crisis, premiums are reportedly as high as 30%+ for people looking to buy precious metals.

This means that while gold & silver have their perceived "value", you will pay a variable rate markup called the "premium" when you purchase from dealers.

What to Own

There's no shortage of options when it comes to what to own, but this video does a great job breaking down the difference as far as sizing goes.

Here are some recommendations:

Gold Coins

• American Gold Eagle (92%)

• American Gold Buffalo (99.99%) * recommended *

• Canadian Gold Maple Leaf (99.99%)

• Austrian Gold Philharmonics (99.99%)

• Gold Krugerrand (92%)

* click to expand

Gold Jewelry

• Exempt from IRS reporting

• Buy investment grade (22 karat+)

Silver Coins

• American Silver Eagle * recommended *

• American Silver Buffalo

• Canadian Silver Maple Leaf

• Sunshine Mint Silver Round

• Austrian Silver Philharmonics

* click to expand

Silver Bars

• 10 oz Scottsdale "Stacker"

• 100 oz Jognson Matthey Bar

* click to expand

Beware Of

• Numismatic Coins: marketed as "rare" & overcharged

What Is the Best Place to Buy Physical Precious Metals?

The best way to buy physical precious metals is through an online dealer that offers a buy-and-store program.

Investors should avoid taking physical possession of their gold or silver unless they believe there is an emergency. It’s much safer to have your bullion stored in a secure vault. It’s also much easier to sell your metals that are stored in a secure vault because you don’t break the chain of custody.

Key Takeaways:

• The best place to buy precious metals is through an online dealer.

• Look for a dealer that offers a buy-and-store program.

• Investors should avoid taking physical delivery.

TAKE ACTION: Buy Precious Metals

I use this website to track the current price of Gold, Silver, & Platinum:

Kitco

These are the websites I use to buy precious metals:

Apmex

JM Bullion

TAKE ACTION: Buy a Safe

I very strongly believe you should store your precious metals in a safe, in your house.

Why?

Do a quick Google search for "USA illegal to own gold":

Read more about it on Wikipedia.

So there is a precident for to happen... don't be "that guy"... learn from history.

This is the safe I use.