How to Buy Gold and Silver – a simple guide

Why should I buy Gold or Silver?

If you are saving money in a bank its value will be at best standing still but more likely to be worth less each day. For this reason it is important to realise that you should also be putting some of your money into INVESTMENTS. An investment makes you money. Property is one method but many people do not want the hassle of maintaining houses and having tenants. Stocks, shares and bonds are beholden to the market and sometimes shares can be completely wiped out if a company fails. This is a risky strategy for your precious savings.

Some commodities such as gold, silver, palladium and oil are increasing in value at a fast rate. It is simple to buy gold and silver and it is also simple to sell it if you need to liquidate your money fast. Unlike property these metals have no upkeep, will not deteriorate with time and you don’t have the hassles with selling that you do with property.

Why Buy Gold?

  • Gold is the only money that has never failed in the 5,000 year history of its use by humans.
  • In times of crisis, gold is the safest investment that also has the greatest potential to increase your wealth.
  • Gold is a completely private and anonymous investment that is also extremely portable.
  • In the last 10 years gold has gone up by 380%.

Why Buy Silver?

  • There is currently less investment-grade silver available on Earth for investors to buy than there is gold.
  • Silver is a ‘miracle metal’. It is second only to oil as the world’s most useful commodity.
  • Aside from being money, silver has thousands of essential industrial uses. Silver is the most electrically conductive, thermally conductive, and reflective metal on the planet that has no known substitutes
  • For the past 30 years the world has used up more silver than has been mined, and today silver inventories are near all time record low levels.
  • In the last 10 years silver has gone up in value 750%.

How can I buy it?

It is easy to buy gold and silver but you must ensure that it is a good, pure source. Unfortunately silver is too soft to make jewellery so this form of silver has a lot of copper in it (hence the reason it tarnishes). You need to buy either silver or gold bullion coins or bullion bars or ingots.

Not all coins are made of pure silver or gold but have a value as a collectable such as Crowns, sovereigns etc. It is important to buy bullion coins. For example, a bullion silver coin is at least 99.9% pure silver. You will receive the bar or coin in the post and you need to store it either at your home or bank. The dealers may have a storage facility too.

Recommended coins include:

  • US Gold Eagle – 1 ounce, ½ ounce, and ¼ ounce sizes.
  • Silver Eagle – 1ounce only.
  • Canadian Silver Maple Leaf – 1ounce, ½ ounce, ¼ ounce and 1/10 ounce
  • South African Krugerrand (Gold) – 1ounce, ½ ounce, ¼ ounce and 1/10 ounce

Buy from a reputable trader that offers to buy it back at any time should you want to cash in your profit:

You can buy up to £5000 without having to show ID as a private investor. Most traders also have to charge VAT.

What do I do with it now?

There are several strategies you can use with silver and gold as an investment.

1. Buy and hold, one time purchase – long term strategy for capital growth.

2. Keep buying and holding – compound growth of the amount you hold and the profit you make – for example you could buy £100 worth a month, by the end of the year you will own £1200 worth but it’s value is also increasing all the time.

3. Buy when the price is low and sell when the price goes up – you can watch micro changes in the market and buy low sell high, or you can just buy, keep for a year and sell and take the profit. Maybe just sell some of it so you still have some!

As with anything, only sell it when you have made a profit. The prices will fluctuate but NEVER sell when the price has gone down – hold onto it!

What other commodities can I buy?

Other good commodities to look into are:

  • Oil
  • Palladium


Investing in gold and silver is a guaranteed way to make money, especially in the medium to long term. For savers it is a safe investment that will increase the value of your savings, unlike putting your cash in the bank. Silver is relatively cheap at the moment so you can buy around 100grms for £110 – a good amount for a beginner to invest each month. You can sell it any time if you need the money.


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