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.