By using the links below you will be sent directly to the answer.
- What is GoldReference™ and its website all about?
- My financial adviser tells us to… What should I do?
- What type of gold and silver should I buy?
- Why should I buy precious metals?
- How can I buy PHYSICAL gold & silver online?
- How can I know the market price?
- How much should I invest?
- How high do you think gold and silver could go?
- What does it mean to buy PHYSICAL metals?
- When buying gold and silver online, am I actually buying the physical metal?
- What does 100% Allocated Vault Storage mean?
- What about local dealers of precious metals?
- You focus a lot on gold and silver; can I buy and sell precious metals via GoldReference.com™?
- What does it means to be a contrarian economist?
- What does debasement mean?
- I don’t have any money to invest, should I borrow money to buy precious metals?
- Do I have to pay duties or taxes when purchasing precious metals for vault storage or delivery?
- What does bullion mean?
- How many grams are in a Troy Ounce (Oz)?
- Are the GoldReference Team registered financial advisors?
- Does GoldReference.com™ earn anything on my purchase of gold and silver?
- How can I trust you?
GoldReference.com™ is a free educational site for those seeking to prepare and prosper from the current and upcoming financial crisis. Our mission statement: Get as much physical gold & silver into the hands of the people. Read more in About us.
This is a very important question that many people ask themselves when their financial adviser try to sell in “the great investment plan” that will impact YOUR financial well-being and YOUR FUTURE.
We believe it is important to have a certain level of personal finance knowledge, so you can get a basic overview of your own situation in terms of income, expenses, savings, loans, assets and liabilities, and, amongst other things, factor in your health and security situation. Take action accordingly. Education is a keyword.
Note. When considering a financial product or service of any kind it is important to consult with authorized financial advisers on the subject. However, be aware that they, like everyone else, will ask you to sign a Terms & Conditions, Disclaimer, and so forth, so at the end of the day, it is you and only you that bears overall responsibility. That is the harsh truth. So, choose your financial adviser carefully. And once again, education is a keyword. Read also How To Invest and Education.
GoldReference Team only promotes precious metals dealers online with PHYSICAL gold and silver for home delivery or offshore storage (outside the banking system).
Let us also add that we strongly believe you are better off with owning pure gold (i.e. Fine Gold 999,9) and silver (i.e. Fine Silver 999,0) than any other types, e.g. junk silver 90% purity, numismatic coins (?%) or any paper gold (ETFs, gold certificates, etc.).
Precious metals, such as gold and silver, have been around for thousands of years. History shows that during economic crises, and in particular when governments and central banks are rapidly increasing the currency supply (printing “money”) to support the economy, investors seek a safe haven for their money and a way to diversify and reduce risk. We cannot give you advice on whether you personally should, or should not, buy any quantity of precious metals. Many investment professionals consider that any investment portfolio should have between 10-20% of precious metals. We believe this percentage to be the case in less than 1% of personal portfolios. If you study how governments and central banks worldwide (not only the US, Eurozone and Japan) have massively expanded their balances by using “funny money” (currency created out of thin air) you would also be shocked and very soon understand that in acquiring physical assets, such as gold and silver, you could reduce your and your family’s exposure to the great risks such currency expansion represents.
GoldReference Team only promotes precious metal dealers online that have an online facilities with personal customer service for you to safely buy (and sell) your PHYSICAL gold and silver. Our team members have long experience with several precious metal dealers. Here you can find a step-by-step explanation on How To Buy Gold & Silver Online with an example from the GoldMoney company. Also read How To Invest.
Gold and silver have 24-hour live rates used as reference worldwide.
There is no minimum or maximum when entering the precious metals market, you simply need to adjust to your own beliefs and financial situation. A man once said he slept badly at night, knowing about the great financial trouble his country was facing. He decided to start purchasing gold and silver. He went to sleep and woke up the next day saying he still slept badly at night, so he went to buy some more. He did the same over and over again for a couple of months, until the day he woke up and said his sleep was once again comfortable. Dr. Marc Faber, a prominent economist and contrarian we listen to and follow, states that it makes great sense to have some physical gold and silver in your possession. He normally says your portfolio should be 25% real estate, 25% equities, 25% bonds and 25% physical precious metals, such as gold and silver. When one asset class goes up or down you can adjust by increasing or reducing between the asset classes to again equalize in order to follow this rule. You can follow him on Twitter or his own blog.
Who knows; we believe that it has not reached its highest point by any means. In fact we believe we are not even near a final leveling off in this precious metals boom market. GoldReference Team does not give specific target prices for gold and silver, but we do believe that we are seeing the Gold/Silver ratio below its historical average of <12, and the DOW/Gold ratio <1, which was the ratio when gold reached $880 per ounce in 1980. This is because we believe in the historical value ratios between assets, rather than in prices which relate highly to currency expansion and decisions made by politicians and central bankers. However, there are many predictions and targets to be found amongst investors and economists. One commentator we do listen to and follow is James Turk, the co-Founder of Net Transactions Limited (GoldMoney). He recently adjusted [upwards] his personal estimates for gold and silver targets. His previous predictions for gold and silver were US$ 8,000 gold and US$400 silver per ounce, back in 2002 when gold and silver were still at historically low prices (compared to pretty much any other asset, such as real estate, stock markets, etc.). Now, after more than 10 years, prices are substantially higher, but credit and currency expansion even more so. His new predictions are of US$11,000 gold and US$1,000 silver per ounce before the present bull market will end. Taking today’s prices (January 2013) into account, this would mean another 550% increase for gold, and an astonishing 3,125% for silver. Be aware that these price targets do not even take into account the potential high inflation or even hyperinflation that the US dollar and many other currencies around the world might face within a few years. One thing is sure, history teaches us that physical precious metals, such as gold and silver, always prevail over currency and the government’s attempt to debase and create more “money”. There is only a limited amount of gold and silver on this planet, and it takes years to even open a new mining company.
Buying physical gold and silver normally means that you either buy bullion bars or bullion coins. Depending on the precious metals dealer, you may have it delivered to your doorstep and/or have it stored in an offshore storage. In both cases you pay a fee for the service to either have your metals safely delivered, or to have it stored in an insured and secure offshore jurisdiction storage facility. See also the question about What type of gold and silver to buy.
Yes. Of course, depending on which company you decide to deal with the answer could be yes or no, but with GoldMoney (www.goldmoney.com) and Gold & Silver, Inc. (www.goldsilver.com) you simply use their online tools with secure access (as with online home banking) where you can easily enter your purchase or sale order online. Most customers decide to store their metals in secure and insured vault storage offshore for safety and political diversification reasons. You can, however, for an extra fee, have your bullion delivered to your doorstep. Read also our How To Buy Gold & Silver Online page.
When you own physical precious metal (not ‘paper’ like an ETF or certificate) there are really only two options for storage – you can either store it yourself or you can let someone else store it for you. When you buy 100% allocated physical gold bullion, you do not need to worry about counterparty risk and the ability of that party to make good on its promise to deliver metal to you when you request it.
When someone else stores precious metals for you, you need to be able to fully rely on that supplier. Your storage partner should have regular independent third party audits in place as well as sufficient insurance. You should have the option to choose from different vaults in different countries to diversify the location of your assets. Learn more about secure and insured safekeeping of your precious metals at GoldMoney.
You can also find local dealers close to your home which may have pure metals and good customer service. The online dealers tend to have an advantage as they can reach a much larger audience without the cost of boutique facilities in each location, etc. This all benefits the customer. Just make sure to buy PHYSICAL, pure metals with a reasonably low fee from the dealer.
It is true that we focus a lot on gold and silver, and the simple reason is that we strongly believe having a portion of any portfolio in physical precious metals is an absolute necessity. It functions as insurance and a hedge on the rest of your portfolio, and is an excellent way to preserve wealth. We do not say that buying gold and silver is the answer for everyone, but we believe it can play an important role for you in reducing risk, and even in acquiring great wealth in the coming period of sustained financial turmoil. But again, this depends on your individual economic and life situation. No-one other than you can say whether this would be for you or not. We do not sell gold and silver via our website, but we do have a few clear recommendations on which companies to deal with if you are looking for physical precious metals, either delivered to your doorstep or in an offshore insured and secured vault.
A contrarian is traditionally defined as a person with a vision that states and advocates positions to the contrary of the more widespread views of mainstream economists and the public in general. You could even say that a contrarian is often considered crazy until the day everyone else sees, says and does much the same as him… A contrarian economist and investor normally searches for assets that are highly depressed in comparison to other assets; they take a position (place their money), and simply wait until the markets start waking up. When “everyone” has entered the party and now all own this asset, the contrarian would normally have sought out other depressed assets; the assets that everyone else ran away from… Sounds complicated? It is actually very simple; a contrarian educates him/herself, analyzes the market and identifies market cycles and trends, price vs. value. The contrarians are often the ones predicting market directions, booms and busts. There are a number of great contrarians; Dr. Marc Faber and Jim Rogers are examples of people we listen to and follow.
The word debasement comes from the time when base metals were put into gold and silver coins to hide the government’s increased spending for wars or welfare from the people. Today’s method of debasement is expansion of the money supply by “printing” and borrowing new money into existence to pay for reckless spending with fewer and fewer true assets (gold and silver) as reserves.
Other types of debasement include gold coins that were cut on the sides or made thinner in order to make more of them. In other cases the gold weight remained constant, but a number was put on the coin to denominate a “value”, which were then normally increased along the way. Therefore, debasement can also be a scam that governments run to steal people’s wealth in order to pay for war and/or welfare, such as social healthcare and pensions, or other promises and their associated over-spending. All debasements of money result in inflation of living expenses and the growth of bubbles that eventually burst.
No, debt is leverage. Leverage may lead to great risk. That is the short answer. The rest you should discuss with your own carefully-selected financial advisor.
Precious metal dealers do normally not charge any duties or taxes, at least in regards to gold and silver in bullion form. We recommend that you contact your local customs and tax authorities for more information on duties and taxes. The answer to this question can vary from country to country and from one customer case to another, especially when you choose the option for delivery to your doorstep.
The word bullion normally refers to pure precious metals. The most traditional forms for gold and silver bullions are 400 oz bars, 1 kg bars, 100 gram bars or simply 1 oz (ounce) coins. For investments and central bank reserves (for the ones that still have some left…), the purity is generally 0,995 (i.e. 99,5%) or higher for gold bullion and 0,999 (i.e. 99,9%) for silver bullion. This is also the market reference you see more and more news channels referring to when talking about the market spot price of gold and silver. See live rates and charts with updated market spot prices.
There are 31.1034768 grams in a Troy Ounce.
No, we do not have the authority to give you financial advice. That is why, throughout our website, we consistently recommend that you make contact with a registered financial advisor before entering into any investments with your personal finances. We do, however, strongly recommend that you choose your financial advisor carefully, so as to get the best possible advice for your finances and individual situation. What we have seen time after time is that pretty much all financial advisors, registered and authorized or otherwise, will make you “read” and sign terms and conditions, which in the end gives you yourself the final responsibility for any direction your investment might take. This is why we highly recommend that everyone educate themselves [financially] and take responsibility for their personal finances. By doing so, you can, just as well as anybody else, take the best decisions as to whom to take advice from, and what to invest in, all by yourself. In this way you can both prepare for, and prosper from, the coming market events. Education is again here a keyword.
Yes, which is how we finance our GoldReference Team’s activities. The advertising banners and text links may direct you outside our site and onto one of our most trusted precious metal dealers. The affiliate programs are normally linked to how many clicks and/or how much a potential re-directed customer would buy after using our affiliate link. The affiliate remuneration is paid by the precious metals dealer and does not change the final purchasing price for you as an end customer. In many cases, these affiliate programs are arranged so you would even save money by accessing via the affiliate links and codes. We do also have a Donate page if you would like to support our team to further achieve its mission.
Don’t. Do your own research. We have read numerous articles, books and reports, and watched video after video to educate ourselves. That’s why we feel certain about our own investment decisions and actions taken to prepare for and prosper from the current and yet-to-come financial turmoil. On our website we hope you’ll find some articles and videos of interest. There are many people writing blogs, articles and videos to inform us; GoldReference Team simply provides you with some of those we believe to be the most relevant.
If you have questions that are not already answered here above, please feel free to drop us a line to firstname.lastname@example.org.
# GoldReference.com™ – Your Entry Point To Physical Gold & Silver