Key Takeaways

  • Precious metals are excellent investment vehicles for turbulent and stable market conditions. They offer diversification, long-term stability, and inflation protection. 
  • Investing in gold and silver means investing in value that appreciates over time, giving returns on investment.
  • Physical precious metals provide direct metal ownership and are suited for both beginner and seasoned investors.
  • Even with little capital, anyone can invest in precious metals through fractional coins, small bars, and other affordable options.

Is investing in gold and silver really only for doomsday preppers and billionaires? Not at all.

Precious metals have been around forever, yet they’re often misrepresented because of investment myths that cloud how they’re viewed. Whether you’re just doing your research or are actively looking to start investing in precious metals, clearing up the most common myths can help you make more confident investment choices. 

In this article, we’ll break down the top five myths and uncover the truth behind them. Let’s get started.

Debunking the Biggest Myths About Investing in Gold and Silver

Myth 1: Gold and Silver Are Only Suited for Investing During Economic Crises

One of the biggest myths out there is that precious metals are only useful when the economy is falling apart. Indeed, precious metals often hold up well in uncertain times, but viewing them as disaster insurance only misses their wider benefits. 

The truth is, investing in precious metals plays different roles in an investment strategy. They can indeed act as a safeguard when inflation rises, currency fluctuates, or geopolitical tensions rise. However, even when markets settle, they still help to lower overall portfolio volatility. 

Myth 2: Precious Metals Don’t Generate Returns

Another common belief is that precious metals don’t offer returns because they don’t pay interest or dividends. Compared to stocks or bonds, this claim might sound true.

Illustration of growing stacks of coins with growing plants on them

In truth, investing in gold and silver produces returns through increases in their market value. Although they do not offer regular income, they help to safeguard purchasing power, something that most income-producing assets don’t always do during inflation. 

Writing off investing in precious metals simply because they don’t generate a regular income is one of the more limiting investment myths.

Myth 3: Investing in Gold and Silver Is Too Complicated

Many would-be investors assume that investing in precious metals requires specialized knowledge of the markets and how to navigate the challenges of physical storage. 

Sure, there’s a bit of a learning curve, but precious metals investing is more beginner-friendly than many believe. Moreover, there are several different ways to approach precious metal investment, such as:

Each of these options has its own pros and cons. However, there being multiple options means that investors can enter the market with the option that feels most comfortable and aligns with their investment goals. 

The idea that investing in gold and silver is overly complicated discourages beginners unnecessarily.

Myth 4: Gold and Silver Prices Are Too Volatile

The claim that volatility makes gold and silver poor investments is another common, misleading investment myth. Although prices fluctuate in the short-term, gold and silver are not as volatile as many high-growth stocks or cryptocurrencies. 

In fact, gold in particular has a reputation for being relatively stable over the long run. Although silver is more volatile than gold due to its industrial demand, it’s that volatility that creates room for growth.

Myth 5: You Need a Lot of Money to Get Started

It’s a common belief that investing in precious metals requires significant capital, making it unattainable to average investors. Well, that’s not true today. 

These days, you don’t need a large budget to invest in gold and silver; with just a small amount of money, you can get started. Thanks to small bars, fractional coins, and digital platforms, the entry barrier is much lower. ETFs also make it possible to invest without owning physical metals.

Make Investment Decisions Based on Truths

Separating the truth from fiction can help you make the right investment decisions. For example, you don’t have to wait until there’s an economic crisis or take elaborate courses to invest in precious metals. Anybody can invest, without having to put down large amounts of money. 

Are you looking to invest in gold and silver? First National Bullion offers a broad inventory, competitive industry pricing, and free shipping on orders $199 or more. If you need help navigating the market, a live U.S.-based support team is available to guide you. Contact us.

Get started today. Explore our metal collections.

FAQs

How will I know when it’s the best time to invest?

Instead of waiting for a chance to enter the market from the sidelines, jump in now. Many investors take the gradual approach by starting with a small investment and studying the market as they build their portfolios over time.

Are gold and silver ETFs safe?

Yes, they’re generally a convenient and liquid way to get exposure to investing in precious metals. However, they come with considerations like counterparty risk, management fees, and the fact that you won’t physically own the metal.

First National Bullion deals with physical metals only, giving you direct ownership, security, and autonomy over your investment.

How should physical gold and silver be stored securely?

You could store your gold and silver investment in a home safe, bank safety deposit box, or seek professional vaulting services. Each storage option has its pros and cons: 

  • A home safe offers control but increases personal security risk.
  • A bank safety deposit box provides security, but limits access.
  • Professional vaulting services offer high security and insurance, but at a cost.

First National Bullion can arrange for 3rd party secure storage with one of the best professional security companies, Brinks. Just open a storage account. Your metals stay protected and you continue to enjoy flexible access because you can trade your metals while in storage or request delivery from the vaults to you, at a cost.