Tag: bullion

How to Invest in Gold, Silver, and Copper Bullion Without Buying Gold, Silver, and Copper Bullion

by Fred Fuld III

While gold, silver, and copper bullion can add diversification to your portfolio, there are some drawbacks to consider:

  • Storage Costs and Security: Physically holding these metals requires secure storage, which can be expensive,especially for larger quantities. Home insurance may not cover them, so you might need to rent a safe deposit box.There’s also the risk of theft if you store them yourself.
  • Liquidity: Selling physical bullion can be slower than selling stocks or ETFs. You may need to find a buyer willing to pay a fair price, especially for copper which has a smaller market.
  • Costs Associated with Buying and Selling: There are markups on buying bullion, and fees associated with selling it. These can eat into your profits, particularly for smaller investments.

For copper, there’s the added challenge of:

  • Bulkiness: Copper is a dense metal. Storing large quantities can be impractical due to the weight and space required. Investing in smaller, more manageable amounts may not be very cost-effective.
  • Limited Market for Reselling: Not all bullion dealers buy copper, and those that do may not offer competitive prices.

So if an investor wants to avoid the risks and volatility of mining stocks, what’s an investor to do?

Fortunately, there are commission-free ways of investing in bullion, with lots of liquidity.

The way to accomplish this is by buying precious metal Exchange Traded Funds.

The most popular one is the SPDR Gold Shares (GLD), which actually owns gold bars. The fund has $62.8 billion in assets and an expense ratio of 0.40%. It is up 12.3% year-to-date.

If you are looking for silver, there is the iShares Silver Trust (SLV). The trust has a net asset value of $12.9 billion and sports an expense ratio of 0.50%. The year-to-date return is almost double what GLD provided, generating 24.1%.

As for copper, there is no ETF that owns copper bullion directly. That bullion would take up a huge amount of space. However, there is the United States Copper Index Fund (CPER), which has an objective of tracking the price of copper using copper futures.

CPER is a very low cap ETF at $229 million, and carries a relatively high expense ratio of 1.o4%. The year-to-date return is 15.5%.

Most stock brokerage firms don’t charge a commission to invest in ETFs, making the precious metals ETFs a cost effective way to trade or invest in bullion.

So now you have a few options of getting into bullion with having to buy bars or coins directly.

Disclosure: Author has a long position in GLD.

Should You Shine On Silver? Examining the Benefits and Investment Options

Unveiling the Precious Metal’s Potential in Your Portfolio

Silver, the lustrous metal, has captivated investors for centuries. But beyond its beauty, silver offers a unique blend of potential benefits for your portfolio. Let’s explore why you might consider adding silver to your investment mix, and then delve into the various ways to hold this precious metal.

The Allure of Silver

  • Diversification: Silver’s price movements tend to have a low correlation to stocks and bonds. This means it can act as a hedge, potentially offsetting losses in other parts of your portfolio during economic downturns.
  • Inflation Hedge: Silver, like gold, has historically held its value well against inflation. As the cost of living rises, silver’s price may follow suit, protecting your purchasing power.
  • Industrial Demand: Silver’s industrial applications in solar panels, electronics, and medical devices create a constant demand stream, potentially influencing its price positively.
  • Potential for Growth: Silver’s supply is finite, while demand is expected to rise, particularly in developing economies. This imbalance could lead to price appreciation in the long run.
  • Affordable Entry Point: Compared to gold, silver offers a more accessible entry point for investors starting with precious metals.

Silver Investment Options: Weighing the Pros and Cons

  • PHYSICAL SILVER (Bullion & Coins):
    • Pros: Tangible ownership, no counterparty risk, potential for collector’s value (for certain coins).
    • Cons: Storage costs, insurance considerations, potential difficulty selling quickly.
  • SILVER MINING STOCKS:
    • Pros: Potential for higher returns due to leverage on the silver price, diversification within the precious metals sector.
    • Cons: Higher risk compared to physical silver, volatility associated with the company’s performance.
  • SILVER ETFs (Exchange Traded Funds):
    • Pros: Low storage costs, fractional shares allow for easier investment amounts, high liquidity.
    • Cons: You don’t own physical silver, expense ratios can eat into returns, counterparty risk associated with the ETF issuer.

      The most popular silver ETF is the iShares Silver Trust (SLV), which has an objective of tracking the price of silver.

A Word about Silver Coins and Authenticity

All three of the above items are FAKE!


Be careful about buying silver coins, as there are many fakes being distributed. These are not just the coins with numismatic value but also the so-called junk silver coins and even the bullion coins (silver rounds).

Fortunately, there are several ways of checking whether a coin is genuine or not. One simple way is to use a phone app called CoinTester. It measures the sound of the ping when the coin is hit with an object, like a pencil.

First, you choose the type of coin. (Note: If you are checking a silver dollar, for Keyword, just type Dollar, not Silver Dollar.) You place the coin on your fingertip, tap Check on the app, then hit the coin a few times with something that won’t damage the coin (I use the wooden part of a pencil.) If is shows a 0 or 1 out of 3, it means the coin is a fake. If it shows a 2 or a 3 out of three, the coin is real.

Just remember that all tests for coins aren’t foolproof. The best approach is to buy from a very reputable coin dealer.

Many numismatic coins are slabbed. In numismatics (the study or collection of coins), “slabbed” refers to the process of encapsulating a coin in a hard plastic holder, often called a slab. These slabs are usually sealed and graded by a professional coin grading service. The purpose of slabbing coins is to protect them from damage and to provide an objective assessment of their condition and authenticity.

When a coin is slabbed, it is typically accompanied by a label indicating its grade, which is determined based on factors such as wear, luster, strike quality, and any imperfections. This grading process helps collectors and investors assess the value of the coin and provides assurance about its authenticity and condition.

Slabbed coins are often considered more desirable for collectors and investors because they come with a trusted third-party evaluation, reducing the risk of buying counterfeit or over-graded coins.

The Final Shine

Silver offers a compelling option for investors seeking diversification, inflation protection, and potential growth. Carefully consider your investment goals and risk tolerance when choosing between physical silver, mining stocks, or ETFs. Remember, a well-rounded portfolio is key, and silver can be a bright addition to the mix.