Pragmatic Guide to Silver and Gold Investing

(And why it should not be seen as an "investment")

Are you someone who wishes to expand his portfolio into gold and silver and looking for a comprehensive guide to silver and gold investing? This guide may not be for you. Our Founder, Armen Rizal Rahman, explains why he sought to create a different type of online guide.

If you were to Google “how to invest in gold and silver” or “guide to silver and gold” or the likes of it, you’ll get pages upon pages of results from top industry experts, experienced enthusiasts and even amateurs investors who has thing or two to say about gold and silver.

Do read them anyway. They’re all just as important. Because whatever the source of material, chances are you’ll notice that they represent different perpectives to some generally common themes such as:

  • Gold and silver have significant importance as a wealth portfolio supplement
  • Gold and silver have a long history, and
  • Our economy is headed for a very dark future

So why is this page here? Why do you need yet another guide to silver and gold?

When I first started drafting it, I asked myself what will make this guide different? Initially, I wanted to write it with Silver Coins Singapore‘s mission in mind: “Silver and Gold, Simplified”. I wanted to create a simplified version of how to invest in gold and silver.

Guide to Silver and Gold Investing

Yet, in creating this guide, I realised that “making it simple” would dilute the critical factors I needed to highlight in building a proper gold and silver portfolio.

Gold and Silver is no longer “money”?

In yesteryears, gold and silver were money and they are treated as money. Today, gold and silver have now become commoditiesThe term “money” is now often associated with fiat’s “dollars and cents” – your average notes and coins. In fact, gold and silver today gets their value measured with fiat currency, a medium that it is supposed to disassociate itself from. In fact, it has become an instrument to “grow money”, which means adding more and more fiat currencies into the system that’s already bloated with fiat currencies!

The reality is: You can’t run away from that irony. And to deny it means you are not acknowledging the fact that, at the end of the day, people don’t really care about what makes money “money” as long as it gets them something immediately. Since fiat currency gets you something (though on the long term it gets you less and less) it has become “money”.

So should I try to make people care about what kind of money they should be using? Should I create a guide that talks about gold and silver in pre- and post- gold standards?

Honestly, I am not too interested in getting into so much details about the history of gold and silver as money. Nor will this guide be talking about how the Federal Reserves is built on a ponzi scheme. Neither did I want our guide to be a basic introductory level encyclopedia to gold and silver. These will be briefly touched on, and we will provide links to explain to you the topic further. However, there’s already too many of them already, and by adding another one will only make us repetitive and the trove of knowledge bloated. Everyone wants an opinion of the same topic. I don’t want to add another echo in the chamber.

Just to be clear on another thing: I am not a gold and silver evangelists who’s trying to change the monetary system back to the “right way” because I believe that the economy will correct itself in its own natural progression. What matters is what we can do to prepare ourselves when that happens. I wanted to be realistic and show our readers what it really meant to invest in gold and silver. I wanted to draw a clear line on our approach on this topic – pragmatic and on the fence.

Between gold and silver lovers and haters

You’re probably thinking – Silver Coins Singapore deals with gold and silver. How can that make me unbiased?

My reason is simple: I feel that many gold and silver lovers and haters don’t actually completely understand gold and silver enough and are sometimes believe in things that are out of touch with reality.

(That statement is going to get me a lot of hate, I know. But it’s pretty obvious when many of us talk about the “dollars and cents” of gold and silver, and not the value of what it can get us.)

That’s why I like to look at both sides of the coin. As I mentioned above, when gold and silver are valued in fiat currency, their purpose as money diminishes. Instead, gold and silver have become a means to make fiat “money”.

What are the effects of this? Depends on which school of thought you are in. Opinions are divided.

For sceptics, this is their case against gold and silver:

  • Gold and silver don’t generate passive income nor do they grow into money bearing instruments. It just sits there.
  • Beyond buying low and selling high, there’s not much practical use of gold and silver to the average person.
  • Prices skyrocket only upon extreme fear in the financial market. Other than that, prices have been unexciting for almost 10 years at least.
  • Gold and silver will never become money.

In other words, gold and silver suck. To haters, cashing in gold and silver just doesn’t generate enough.

For the optimistic, this is their case for gold and silver:

  • All other forms of money are artificially valued and should not have a place in the real market.
  • When a financial crash happens, we will see the return of gold and silver as money.
  • Look at the charts between 2008-2012 at how much you can gain from gold and silver.

In other words, gold and silver reign as king. Lovers live in the delusion of a rich future that they have not yet seen and cannot predict.

The above points however, shows that it all boils to valueing gold and silver in dollars and cents. They address the question: “How much money and how often can I make it from gold and silver?” Depending on whether gold and silver can perform well enough to meet your expectations, that is when people either love it or hate it.

Becoming the pragmatic “gold-bug”

At Silver Coins Singapore, we stand at the crossroads of believe and skepticism. Gold and silver to us a mere tool towards a goal. History shows that gold and silver were used as money, but were not the only form of money available. Also, the economy has evolved in a manner that requires us to re-evaluate our present situation. Clinging too much to the past will not help us progress towards our personal goals.

At the same time, we shouldn’t disregard the significance that gold and silver have over in the economy over the years. History is a great teacher. It welcomes anyone to look back at reference material, but you need to put lot of effort to find the right answer.

My approach with this guide is purely pragmatic. I finally decided: “Let’s get real. Let’s look at the good, the bad and the gorgeously ugly sides of gold and silver.”

So, what does this guide cover?

This guide is created from in-depth research, over 5 years of experience in the gold and silver industry, as well as observations from Silver Coins Singapore’s clients.

The guide covers the basics of gold and silver investing for sure, but it also offer something else: a holistic approach to building your gold and silver portfolio. Holistic because I believe that silver and gold are part of a whole equation for personal wealth, finance and economics. Hence, it covers issues on money management, budgeting and financial goals. I’m not an expert in these fields, but I recognise that these things are important enough to be given due attention to.

The guide also addresses what gold and silver should do for you and why they are beneficial to have. It highlights common mistakes that happen when people invest in gold and silver and shed light on other details you should keep in mind before dipping your toes into the field.

We will briefly revisit gold and silver’s role in the history of money, because like it or not, it happened. The guide offer opinions on how silver and gold can address some real wealth problems that the average person has. It will also touch on how silver and gold may cause more harm than good for a seemingly “fool-proof” wealth portfolio, because like it or not, it can happen.

Guide to silver and gold for the pragmatic, practical and… the sceptics?

This guide is comprehensive enough to give you the confidence needed to get yourself started, and more importantly, simple enough to cover the critical basics.

What I hope, above all, is to correct certain misconceptions about gold and silver which have built up due to inaccuracies, false assumptions, and worse yet, false promise and expectations. Because I feel that there are just too many of it.

So, here it is; Silver Coins Singapore’s pragmatic and practical guide to gold and silver.

Click on the topic you wish to explore and we’ll take you there.

DISCLAIMER

You should be aware that in ANY type of investment, a certain risk is involved. Gold and silver investments comes in many forms and it is absolutely necessary for you to be aware of the various degrees of risks each type of investment carries, especially gold and silver trading on CFD and Forex platforms. If in doubt, talk to your personal financial advisor for clarification.