Should You Be Investing in Gold and Silver?

Jason Williams

Posted August 30, 2024

Over the past few years, I’ve written a good deal about investing in gold and silver. I’ve explained why precious metals prices protect against inflation. I’ve explained how they tend to go up as the value of a dollar goes down. And I’ve explained that they’re often seen as the last safe-haven asset in times of extreme turmoil. But today, I want to really drive home the point that everyone needs to be investing in gold and silver. Because nearly everything that’s lining up in front of us right now could combine to drive the prices of both gold and silver to outrageous levels.

investing in gold and silver

So, with that little introduction out of the way, let’s talk about why you must invest in gold and silver over the coming decade…

Investing in Gold and Silver: The Historical Precedent

First off, let’s talk about the historical precedent for investing in gold and silver. Because we’ve seen forces like these stacked against us before. And we know exactly how it all ended. The last time inflation rose and growth slowed, precious metals prices soared.

investing in gold and silver history

And if it weren’t for Paul Volcker clamping down on the economy and inflation, they would have kept on rising. Today, we’ve got obvious signs of economic slowdowns ahead. We’ve got weak manufacturing, rising unemployment, unsustainable debt levels, exhausted savings, and a weakening consumer. But what we don’t have is a Paul Volcker willing to do what it takes to reset markets.

The current Federal Reserve head and the board of governors are a big part of the reason for investing in gold and silver. For more than just one reason, too. In part because they’ve shown themselves both slow to react and beholden to the market’s demands. But also because of something else they’re doing that nobody is really talking about…

Central Banks Are Investing in Gold and Silver

You see central banks around the world have been quietly buying up massive amounts of precious metals. In short, central banks around the world are investing in gold and silver. In fact, in 2022 and 2023 alone, central banks bought more gold than in the preceding four years combined! And they’re not slowing down, either. As of March 31, 2024, central banks had added another record amount of gold to their vaults. Central banks are stepping up their investing in gold and silver more than ever before:

investing in gold and silver banks

And as I said, we’re not just talking about one or two banks here. There are central banks from all over the world investing in gold and silver. And they’re investing heavily:

  • The Peoples’ Bank of China recently reported 2,262 tons of gold in its reserves
  • The Reserve Bank of India grew its reserves by 19 tons in just the first quarter of 2024
  • The Czech National Bank reported increasing its reserves in 2024
  • The National Bank of Poland is in on the buying too
  • The National Bank of Kazakhstan, the Monetary Authority of Singapore, and the Central Bank of Oman all added to their reserves
  • Qatar’s central bank and that of Turkey continued adding to their reserves

More impressive than how many central banks are investing in gold and silver is how few are divesting from them. In the first quarter of this year, only three of all the world’s central banks were net sellers of precious metal reserves:

investing in gold and silver buying

When even the central bankers are investing in gold and silver, it’s more prudent than ever for you to start investing in them too.

How to Start Investing in Gold and Silver

OK, so now you understand why you should be investing in gold and silver. They’re poised for potentially historic gains as multiple forces converge to send their values soaring. Inflation and slowing growth are two of the biggest. Increased demand is another, as is scarcity. Geopolitical tensions are another we haven’t discussed today but that I’ve covered in other articles.

But now maybe you’re wondering how to start investing in gold and silver. And if you are, then you’re in luck. Because there have never been more ways for retail investors to get a stake investing in gold and silver.

The most common and easiest to access are exchange traded funds, or ETFs. These can include a basket of stocks related to the gold mining industry, like the popular VanEck Gold Miners ETF (NYSE: GDX) or the Global X Silver Miners ETF (NYSE: SIL). Others provide a more direct investment in the metals themselves, like the SPDR Gold Shares Fund (NYSE: GLD) and the iShares Silver Trust (NYSE: SLV).

But investors can also buy shares of gold and silver miners individually through any online brokerage account. They can also trade options and futures on both miners and the metals themselves. Those are a lot more complex, though, so they’re best left to the experts.

Buying physical gold and silver coins and bars is another way to get started investing in gold and silver. Those often carry some kind of markup from the company making them accessible. But they also give psychological security by letting you actually hold your investment in your hand.

There’s even a group of gold and silver enthusiasts that are currently working on creating a way to start investing in gold and silver while it’s still in the ground… even if it’s never mined at all. In fact, this alternate method of investing in gold and silver depends on those precious metals staying safe in the ground and just growing in value over time.

It’s probably the most fascinating way to start investing in gold and silver that I’ve ever come across and I highly suggest you learn more about it in this free report.

When you’re done, you’ll have a full understanding of the importance of investing in gold and silver. And you’ll have a full arsenal of weapons at your disposal to get you started investing in gold and silver today.

To your wealth,

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Jason Williams

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After graduating Cum Laude in finance and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team responsible for billions of dollars in daily trading. Jason left Wall Street to found his own investment office and now shares the strategies he used and the network he built with you. Jason is the founder of Main Street Ventures, a pre-IPO investment newsletter; the founder of Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock newsletter. He is also the managing editor of Wealth Daily. To learn more about Jason, click here.

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