Physical Gold & Silver vs. Mining Stocks in Baton Rouge, LA

As we see mass inflation occur across the world, many people flee to precious metals and mining stocks in order to hedge against inflation. Investing in gold and silver is a very wise decision when dealing with such uncertainty in the market. We see many of our clients in Baton Rouge invest in gold coins and gold bullion. The same goes for silver as well. There are many, however, that flee to gold and silver mining stocks. Which approach is best? Should you invest more in physical gold or gold mining stocks?

The answer really depends on your approach. There are many different ways to invest. Let’s start with investing objectives. Are you looking to hedge against market inflation in case of a market crash, or are you trying to grow your gold portion a considerable amount over a short period of time? Physical gold will protect against market crash and inflation. Gold mining stocks typically allow for more growth over a shorter period of time. In a bull market run for gold, it is generally more advantageous to focus on stocks rather than physical gold because the mining stocks have a greater room for growth.

Physical Gold & Silver

Physical gold, whether gold coins or gold bullion, has many advantages and a few disadvantages. Physical gold has proven to be a very stable investment over time. Gold can be used as a part of a retirement fund. Many experts agree that physical gold works as a hedge against inflation and provides investors more security in the event of a market crash. One disadvantage of physical gold is that gold is affected whenever the stock market becomes stronger. Another disadvantage is storing physical gold. There many different options to store your assets, whether it be a personal safe, a hole in the ground, a safety deposit box, or various other storage possibilities.

Gold & Silver Mining Stocks

Gold mining stocks are not quite the same as buying physical gold. When you purchase a gold mine stock, you are investing in the miners that work for a company. The key to investing in gold mining stocks is choosing the right company. It is beneficial to research about the amount of gold being mined. This investing method is very risky. That is the biggest disadvantage to purchasing gold mining stocks. Investors can lose their money invested just as quickly as they can gain money from these stocks. One advantage for investing in mining stocks, aside from the possibility of making money quick, is that they appreciate like stocks.

At Gold & Silver of Louisiana, we primarily see many come into our Baton Rouge location to purchase physical gold and silver. There is no right answer to which is really better between physical gold and mining stocks. Your personal investing objective plays a big role behind which method to choose. Experts conclude that a diversified approach is the best way to invest. Timing is the biggest key when you buy gold or silver, physical or mining stocks.

In Baton Rouge, we, at Gold & Silver of Louisiana, purchase loose diamonds, diamond engagement rings, and diamond fashion rings fairly often. As diamond buyers, we are sometimes faced with the tough task of informing diamond owners that their stones aren’t worth the price they paid to buy the diamonds. In fact, there is a very stark difference between the price paid and the worth of their diamonds. When buying diamonds it’s always recommended you first consider the four C’s: Carat, Cut, Color, Clarity. All diamonds can be accurately described by these C’s. This is the proper way to evaluate diamonds, but there is the unspoken 5^th C, Cost! How much is this going to cost you? This is important to consider because the 5^th C, in retail, does not always accurately reflect the other four.

Marketing Tools

In the large retail chain stores, it’s more about marketing and less about the quality of the diamonds. Department stores have pretty much the same strategy. As a general rule, other than the occasional inexpensive gift or after thought, it is best not to purchase diamonds in the same place you buy a toaster or lawn mower. Most retail chain stores offer a trade up policy on their diamond rings. This is actually a sales tool designed to build value in diamonds that have very little value, and to possibly generate another sale. Under the special high beam lights at the diamond counter all the rings are of VS (very shiny) quality. Most of these rings, however, are of very inferior quality stamped out by machines; they are mass produced in China & India and sold to the large retailers in the west at a fraction of price the consumer ultimately incurs.

Unfortunately, sometimes it’s only when people bring in one of these rings for repair, resizing, or a valuation estimate to sell diamonds to an experienced, reputable Jewelry concern like Gold and Silver of Louisiana that they discover a harsh truth, the difference between retail and reality, the 5th C. To receive the best value while purchasing loose diamonds and diamond rings, the secondary market is your best bet. At Gold and Silver of Louisiana in Baton Rouge, our diamonds are priced at their true value, so it allows us to sell diamond and engagement rings at a price that is much more affordable than diamond retail chains. Come in to see us at Gold and Silver of Louisiana, where the 5^th C is just as important as the other four C’s.