There are myriads of motives and goals you may have for your silver and gold buying. Later we can examine them in more detail, but for now, I will take a stab at some basics.
For the most part, silver and gold buying boils down to two factors: wealth preservation and growth.
The first main reason most people buy bullion today is to keep what they have earned and saved. Many people see how bank and government actions have corroded people’s savings over time (mainly through inflation and taxation) and they buy bullion with the intention of not losing what they have rightfully earned.
People also like having a tangible control over their wealth, an asset class banks and governments cannot track, freeze, seize, or fully trace.
The second biggest reason an investor might buy bullion is for future profit or purchasing power expansion. Many believe the fundamental factors of the financial market todays will lead to higher values for silver and gold in the future. They look to buy and hold today and perhaps sell later and move into another (hopefully undervalued) asset class down the line.
Other buying motives may also include having some tangible, private, transportable stores of value one can keep in reserve, in case of emergency. Silver and gold bullion are assets, which can be privately and easily transferred to benefactors without legal proceedings, will executors, and paperwork.
The next article in our Beginners’ Guide to Buying Physical Bullion will discuss the spot price vs the physical price.