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Poor Man's Guide
to Precious Metal Investments




So you don't have a big budget to buy gold and other precious metals...

How can you find cheap investment metals, how can you invest in gold with a tight budget?

We are going through this issue by sharing practical advice that you can use for buying.

Most of us are glad that we have enough money to feed our families and pay the bills. Some of us are happier when we can afford a short summer vacation. Let's face it: most people don't have sufficient funds to buy even an ounce of gold. In early 2012, a single ounce was around 1,800 USD and that's way too much and average person can afford.

Gold is the "king of investment metals" - that is a misconception. It is the most "notorious", most famous of them, but certainly not the most affordable and it won't even bring you the highest incomes, as it rises!

You can invest in precious metals, even if you have a small budget for it. Let's see how...


There are several key issues to understand, learn, measures to take first...

 1. Silver is far cheaper than gold: some say it's "poor man's gold" - the white metal can be bought and sold fairly easily in the USA, Canada, Western Europe, but in some countries it might be a bit difficult to trade it...

 2. Silver is undervalued, its price will rise far more than gold's price! Because it is more rare and it's getting rarer due to the fact that it's constantly being used by industries. As a percentage, silver can rise much higher than gold! So the same amount of money invested into silver will bring you more return on investment, than if you would invest it into gold!

 3. Start saving small amounts of money and buy the maximum amount of investment metals: even if you can save a single pure silver coin a month (maybe you can buy 5-6, that would be great!), that multiplied by the number of months in a year is not a negligible reserve - could be a minimal reserve to buy food for 3-4 weeks for a person (maybe more)

 4. Some of you should concentrate on silver: if you live in the USA, Canada, the UK or other western EU countries, but also in China and Japan, then silver will be abundant, bought and sold at specialized agents, but in other countries (for instance, Eastern Europe, Latin America), silver might be a na´ve choice, as you will find very few merchants willing to buy it back from you (after you have accumulated and need to spend it)

 5. Others of you should aim at small amounts of gold: in Eastern European countries, for instance it is hard to buy and sell anything else than gold (it's almost the "only known and traded investment metal"), so aim at buying gold - the smallest amount you should buy should be 1 g

 6. Avoid buying numismatic coins: these have an artistic-aesthetical value as well, but few people will be interested in that, rather the pure metal's worth will be taken into account

 7. Buy bullion, pure investment metals: don't buy old silver coins, gold bracelets or anything that is not investment metal! You will hardly be able to sell those items. The kind of gold, silver or other metals you should buy are those that you can easily sell at banks, specialized traders.

 8. Buy many small pieces of anything: if you buy coins, bars or anything, try buying many small and some medium pieces instead of buying a huge bar - you will most probably need to trade the small ones during hard times and the few big ones will have too high value for small transactions, you won't be able to cut it into small pieces...

 9. Avoid anything else than silver and gold: it's not recommended for small budgets to waste on anything more special, unique, which is harder to sell and is potentially harder to verify (fewer people can verify palladium, for instance, than silver)

 10. Spend less than normally and buy investment metals instead: even poor people overspend - try watching less TV (save electricity), try buying cheaper and healthier food, give up on unnecessary entertainment, don't spend much on alcohol, cigarettes etc.

 11. Smaller units mean more expensive: generally a 10 g gold bar will cost more per gram than a 50 g gold bar, so the bigger the bar is, the cheaper per unit - you might want to calculate which bars are most adequate for your portfolio, so buy the ones that are big enough, but not small enough

 12. Diversify your holding of metals: keep some silver coins, buy gold bars and diversify smartly - you will need more 5 and 10 gram bars, but if you can afford, you should buy a few 20, 50, maybe 100 gold bars as well (they will cost you less per gram)

 13. Buy more at a time: especially if it is shipped to you, try not to buy always one-by-one, try purchasing multiple at a time

 14. Compare the prices of merchants: some do overprice their bullion, if you're lucky, you might save also when buying from the merchant who sells the exact same product for less than its competitors

 15. Watch the prices, buy on bear market: buy when the prices are down, avoid purchasing when they are up - it's a good idea to watch the trends at Kitco.com.






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