If you’re asking yourself how do I invest in precious metals, you’re not alone. Many new investors are drawn to tangible assets like gold and silver as a way to protect their wealth and diversify their investment portfolios.
The growing interest in precious metals investing makes sense. In today’s uncertain economic climate, people want investments they can actually hold in their hands. Unlike stocks or bonds that exist only on paper, precious metals offer something real and lasting.
This blog will walk you through why people invest in precious metals, how to invest in physical metals, what you need to know before starting, common beginner mistakes to avoid, and structured options like the 7k membership program.
It’s important to note that JLV Coins doesn’t sell memberships. Instead, we educate readers on how some people use these programs to simplify their precious metals investing journey.
Why People Invest in Gold and Silver
Inflation Protection & Currency Hedge
Gold has played a crucial role as a safe store of value throughout history, especially during times of high inflation. When paper money loses its purchasing power, precious metals tend to hold or increase their value.
Here’s a compelling fact: Gold has averaged 10.6% annual returns over the past 50 years. This consistent performance makes it an attractive option for investors looking to protect their wealth from inflation’s erosive effects.
Silver also serves as an inflation hedge, though it tends to be more volatile than gold. Both metals have historically maintained their purchasing power when traditional currencies weaken.
Tangible Asset Appeal
Unlike digital assets or paper investments, precious metals are physical items you can hold in your hands. This tangible nature provides a sense of security that many investors find comforting.
In an increasingly virtual world, the appeal of something you can hold remains powerful. Physical metals offer intrinsic value that doesn’t depend on computer systems, internet connections, or corporate promises.
When you own physical gold or silver, you truly own the asset. There’s no counterparty risk, no digital wallet to hack, and no company that can go bankrupt and take your investment with it.
Portfolio Balance & Long-Term Value
Precious metals don’t move in sync with the stock market. This low correlation makes them helpful during market downturns when stocks and bonds might be falling together.
Financial advisors often recommend a 5-15% allocation to precious metals for portfolio diversification. This allocation can help stabilize your overall investment performance during turbulent times.
Gold and silver have maintained their value over centuries. While other investments come and go, these metals have stood the test of time as stores of wealth.
Why Some Use 7k Membership Programs
Structured programs like 7k memberships remove much of the legwork involved in precious metals investing. These programs give beginners a clear path to follow, making the process less overwhelming.
For new investors, the precious metals market can seem complicated. Programs like these provide education, sourcing, and delivery services all in one package.
Different Ways to Invest in Precious Metals
Physical Metals: Coins, Bars, and Rounds
Physical metals represent the most direct way to own precious metals. These are tangible products made of gold, silver, platinum, or palladium that you can hold, store, and sell.
Understanding Purity
When buying physical metals, purity is crucial. Look for these common purity levels:
- .999 fine gold = 99.9% pure gold
- .9999 fine silver = 99.99% pure silver
- .9995 fine platinum = 99.95% pure platinum
Weight Standards
Physical metals come in various weights:
- 1 oz (most common for beginners)
- 10 oz (popular for silver)
- 1 kg bars (for larger investments)
- Fractional sizes like 1/10 oz or 1/4 oz
Understanding Premiums
Premiums are the cost above the spot price of the metal. These costs cover:
- Minting and manufacturing
- Distribution and dealer markup
- Design and authentication features
For example, a 1 oz American Gold Eagle might have a $100-$150 premium over the current gold spot price.
Storage Considerations
Safe storage is essential for physical metals:
- Home safes (fireproof and burglar-resistant)
- Bank safe deposit boxes
- Insured third-party vault storage
- Professional storage services
Each option has different costs, accessibility, and security levels to consider.
You can source physical metals from trusted dealers or through structured programs like 7k membership services.
Precious Metal IRAs
Self-directed IRAs allow you to hold physical gold or silver within a tax-advantaged retirement account. These accounts must meet specific IRS requirements and use approved custodians.
IRS-Approved Metals
Only certain metals qualify for IRA investment:
- Gold coins and bars (minimum .995 fineness)
- Silver coins and bars (minimum .999 fineness)
- Platinum and palladium (minimum .9995 fineness)
Storage Requirements
IRA metals must be stored with approved custodians. You cannot store them at home or in a personal safe deposit box.
Pros of Precious Metal IRAs:
- Tax advantages (traditional or Roth options)
- Inflation protection for retirement savings
- Portfolio diversification within retirement accounts
Cons to Consider:
- Setup complexity and ongoing fees
- Limited liquidity compared to traditional IRAs
- Required minimum distributions at age 73
Digital and Tokenized Metals
Digital metals represent a new way to own precious metals through blockchain technology. These are digital tokens backed by real metals stored in secure vaults.
How They Work
Services like Paxos Gold (PAXG) create digital tokens that represent actual gold stored in vaults. Each token is backed by one troy ounce of gold.
Advantages:
- Easily tradable 24/7
- No physical storage concerns
- Fractional ownership possible
- Quick liquidity
Disadvantages:
- Newer technology with evolving regulations
- Counterparty risk with the issuing company
- Potential technical issues
- Less familiar to traditional investors
Some investors prefer traditional access through programs like 7k for simplicity and the comfort of established processes.
What to Know Before Investing in Physical Metals
Assess Your Risk Tolerance and Goals
Precious metals can fluctuate in value, sometimes significantly. You need to understand your comfort level with market swings before investing.
Ask yourself these key questions:
- Are you investing to preserve wealth or seeking growth?
- How much volatility can you handle?
- What percentage of your portfolio should be in metals?
- Are you planning for short-term gains or long-term holding?
Most financial advisors recommend starting with a small allocation (5-10%) and adjusting based on your experience and comfort level.
Understand All Costs Involved
Precious metals investing involves several costs beyond the initial purchase price:
Premiums Above Spot Price
- Coins: $100-$150 per ounce for gold
- Bars: $50-$100 per ounce for gold
- Silver premiums: $3-$5 per ounce
Storage Costs
- Home storage: Safe and insurance costs
- Bank boxes: $50-$300 annually
- Professional storage: 0.5-1% of value yearly
Insurance Expenses
- Home insurance riders
- Professional storage insurance
- Transportation insurance
Resale Spreads
- Dealer buyback rates (typically 2-5% below spot)
- Auction fees
- Shipping and handling costs
These costs can add up quickly, so factor them into your investment calculations.
Know Your Time Horizon
Precious metals typically work best as a long-term investment strategy. Short-term trading can be challenging due to:
- Daily price volatility
- Transaction costs eating into profits
- Tax implications of frequent trading
Most successful precious metals investors think in terms of years or decades, not months.
Commit to Ongoing Education
The precious metals market is dynamic and influenced by many factors:
- Global economic conditions
- Currency fluctuations
- Supply and demand changes
- Geopolitical events
- Central bank policies
Stay informed through:
- Reputable financial news sources
- Precious metals dealers’ market updates
- Industry publications
- Educational resources from trusted sources
Remember: “Set-and-forget” is not a strategy for this asset class. Regular monitoring and learning are essential.
How Some People Use a 7k Membership to Invest
Access to Government-Backed Metals
7k membership programs provide access to coins and bars from official government mints. This includes products from:
- U.S. Mint (American Eagles, American Buffalos)
- Royal Canadian Mint (Maple Leafs)
- Austrian Mint (Philharmonics)
- Other sovereign mints worldwide
Government-backed metals offer:
- Guaranteed purity and weight
- High liquidity and recognition
- Anti-counterfeiting features
- Collector and investor appeal
Monthly Delivery Options
Automated delivery plans help beginners steadily accumulate physical assets over time. These programs typically offer:
- Fixed monthly investment amounts
- Dollar-cost averaging benefits
- Automatic shipment scheduling
- Flexible adjustment options
This approach helps smooth out price volatility and builds a precious metals position gradually.
Education and Tools
Membership programs often include valuable educational resources:
- Market analysis and trends
- Product guides and comparisons
- Storage and security advice
- Buying and selling strategies
These resources help members:
- Evaluate different coins and bars
- Understand market movements
- Make informed purchasing decisions
- Develop long-term strategies
JLV’s Educational Role
JLV Coins doesn’t sell 7k memberships but provides education on how they work. Our goal is to help you understand all your options for precious metals investing.
Some investors find membership models less overwhelming than sourcing metals themselves. These programs can simplify the process for beginners who want guidance and structure.
Common Mistakes Beginners Should Avoid
Jumping In Blindly
Many new investors make the mistake of panic-buying metals during market uncertainty or chasing headlines without proper research.
Better Approach:
- Start with education before investing
- Begin with small, calculated purchases
- Develop a clear investment strategy
- Avoid emotional decision-making
Take time to learn about different products, market factors, and storage options before making significant investments.
Lack of Diversification
Going “all in” on precious metals leaves investors vulnerable to market shifts and missing opportunities in other asset classes.
Recommended Allocation:
- 5-15% for most portfolios
- Higher allocations for specific situations
- Balance with stocks, bonds, and other assets
- Adjust based on age and risk tolerance
Diversification helps protect your overall wealth even if one asset class underperforms.
Ignoring Storage and Safety
Proper storage is crucial for protecting your precious metals investment. Common storage mistakes include:
- Keeping large amounts at home without proper security
- Using inadequate safes or hiding places
- Failing to insure stored metals
- Not considering privacy and security risks
Storage Best Practices:
- Use fireproof, burglar-resistant safes for home storage
- Consider professional vault storage for larger amounts
- Maintain adequate insurance coverage
- Keep storage locations private
- Have emergency access plans
Resale Difficulties
Some precious metals products are harder to sell than others. Avoid these common liquidity mistakes:
- Buying rare or obscure coins
- Choosing products with high premiums
- Ignoring local market demand
- Not planning exit strategies
Stick to High-Recognition Items:
- American Gold Eagles
- Canadian Maple Leafs
- Generic gold and silver bars
- Popular silver rounds
These products are widely recognized and easier to sell when needed.
Neglecting Fine Print
Always read and understand the terms of any precious metals program or purchase:
- Shipping and handling policies
- Return and exchange options
- Storage and insurance terms
- Minimum purchase requirements
- Fee structures and ongoing costs
Key Questions to Ask:
- What are all the fees involved?
- How is shipping handled and insured?
- What happens if products are damaged?
- Are there minimum order requirements?
- How easy is it to sell back to the dealer?
Understanding these details helps avoid surprises and ensures you’re making informed decisions.
Getting Started: Your Next Steps
Start Small and Learn
Begin your precious metals journey with small purchases to gain experience:
- Buy a few silver coins or a small gold piece
- Practice storage and handling
- Learn about market pricing
- Understand the buying and selling process
Research Reputable Dealers
Choose established dealers with:
- Good Better Business Bureau ratings
- Transparent pricing
- Secure shipping methods
- Clear return policies
- Positive customer reviews
Consider Your Storage Options
Decide on storage before making purchases:
- Home storage for small amounts
- Bank safe deposit boxes for medium amounts
- Professional vault storage for large amounts
- Insurance coverage for all options
Track Your Investment
Keep detailed records of:
- Purchase prices and dates
- Storage costs
- Insurance expenses
- Current market values
- Tax implications
Stay Informed
Follow precious metals markets through:
- Daily spot price tracking
- Market news and analysis
- Economic indicators
- Geopolitical developments
Final Thoughts
So if you’re still wondering how do I invest in precious metals, the answer is clear: start with learning, then try small physical purchases, and consider structured tools like 7k membership programs for consistency and guidance.
The key is to approach precious metals investing with patience, education, and realistic expectations. These assets can play a valuable role in your overall investment strategy, but they work best as part of a diversified portfolio rather than a standalone solution.
Remember that precious metals investing is a long-term strategy. Don’t expect quick profits or try to time the market perfectly. Instead, focus on steady accumulation and wealth preservation over time.
JLV Coins is here to help you understand the precious metals investment process, not to sell you anything. Our goal is to provide the education and information you need to make smart, informed decisions about your financial future.
Whether you choose to buy individual coins and bars, work with a structured program like 7k, or combine multiple approaches, the most important step is getting started with proper knowledge and realistic expectations.
Take your time, do your research, and remember that successful precious metals investing is about patience, consistency, and continuous learning. Your future self will thank you for taking the time to do it right.