Up front: Select a trustworthy dealer and place your order. But there are many complexities and nuances that I will explain. Please forgive me if I have left any of your questions unanswered, but I endeavor to include all needed information to keep you out of trouble.
First, what should you buy? Here are some of the options.
Forms of Gold and Silver
- Jewelry
- Bars/Ingots
- Coins (“rounds” produced by private mints, typically silver)
- Coins (from sovereign mints, historic and current coins)
- USA Silver Dollars
- Junk Silver 90% (USA pre-1965 dimes, quarters and half-dollars)
- Junk Silver 40% (USA Kennedy Half-Dollars minted 1965–1970, and 1976, as well as Eisenhower Silver Dollars minted in the years 1971-1974, and 1976)
- Commemorative/“Collector” Coins
- Numismatic Coins
- Allocated Accounts
- Exchange Traded Products (ETPs)
Jewelry can certainly be a store of value because it contains gold or silver. Gold jewelry will typically be stamped with the purity in karats. 24 karat is 100% gold. 18 karat is 75% gold. Silver stamped with 925 is 92.5% silver. Jewelry will often have the hallmark of the maker along with the purity. If you like jewelry, that is wonderful. However, I do not recommend jewelry for preserving and storing your wealth. The premium above spot price is typically much higher compared to bullion products. That said, people who live in Asian countries many times use gold jewelry for storing wealth. Much of the jewelry sold in Asia is 22 karat.
What is bullion? Bullion is a bar or coin that contains a specific quantity of gold/silver at a stated purity. The weight listed is always stated in pure gold or silver, no matter if the fineness is 0.9, 0.999, 0.9999, or 22 karat (0.9167 fine).
A bar, or a “right rectangular prism” for geometry buffs, is typically stamped with the refinery/mint name, metal type, weight, purity, and larger bars often have a serial number. Bars typically have a lower premium than coins. Bars may be suitable for large purchases once you are satisfied with the quantity of coins you have. Silver comes in bars weighing 1 troy ounce, 10 troy ounces, 1 kilogram (32.15 troy ounces) and 100 troy ounces. Silver also comes in 1,000 ounce “good delivery” bars which are not exactly 1000 ounces, but the precise weight is stamped on each bar. Gold comes in bars weighing 1 gram, 5 grams, 1 troy ounce, 10 troy ounces and 1 kilogram (32.15 troy ounces). Gold “good delivery” bars are 400 ounces but would cost over $1,500,000 at $3800 per troy ounce.
Coins produced by private mints are often referred to as “rounds.” Coins should have the same information stamped on them as do bars. Coins typically do not have a serial number. Coins from sovereign mints will, in addition, have a face value stamped on them. For example, a 2025 USA Silver Eagle will have a face value of $1 and a 2025 USA Gold Eagle will have a face value of $50. A one-ounce 2025 Austrian Silver Philharmonic will have a face value of 1.5 Euros and a one-ounce 2025 Canadian Silver Maple Leaf will have a face value of 1.5 Canadian Dollars. Face values are ridiculous when you compare the Federal Reserve Notes required to buy a silver coin with a $1 face value.
Some Sovereign Mints:
- United States Mint
- Royal Canadian Mint
- Perth Mint (Australia)
- British Royal Mint
- Austrian Mint
- South African Mint (Krugerands)
- Chinese Mint
- Mexican Mint
I do not typically buy current-production coins from sovereign mints. But there may be increased trust in coins from the sovereign mints in a “without rule of law” situation. Sovereign mint coins typically have a higher premium than privately minted coins.
USA minted Peace silver dollars (1921-1935) and Morgan silver dollars (1878-1904, and 1921) typically have a larger premium per ounce than junk silver. Each silver dollar contains 0.7734 troy ounces of silver at 0.900 fineness. Junk silver (dimes/quarters/half-dollars) originally contained 0.7234 troy ounces of silver at 0.900 fineness when minted. Because junk silver was circulated and the coins experienced wear, dealers have standardized the content and will sell you junk silver based on 0.715 troy ounces of silver (0.900 fineness) per dollar of face value. Note that junk silver dimes, quarters, and half dollars have less silver per unit of face value than do silver dollars.
I do not recommend buying modern silver coins in denominations other than 1 troy ounce. Purchasing junk silver is a much better way of getting fractional 1-ounce silver coins. For gold, there are fractional coins that weigh less than one ounce. These are okay, but pay close attention to the premium per ounce that you are paying. Understand that you will pay a higher premium for fractional-ounce gold coins than one-ounce gold coins. If you want smaller denominations for possible barter in the future, then I recommend junk silver.
Allocated accounts are like a bank account or brokerage account except that you deposit Federal Reserve Notes and they convert them to physical gold/silver and store it for you. Because they maintain possession, the selling process is faster than having to ship your metals to a broker. Two such platforms that I use currently are Vaulted (by McAlvany) and OWNx. I use these to invest short-term funds that I will be using soon (less than one year). I prefer to store my cash in real money (gold/silver), not in Federal Reserve Notes. There is a premium when you buy or sell but the premium spread for the round-trip transaction is typically less than when purchasing physical. With these accounts, you can convert your allocated metals and have them delivered to you. Each platform has minimum quantity to have the metals delivered. Read the terms/conditions before you open an account.
You can purchase gold/silver via exchange traded products (ETPs) such as GLD (SPDR), SLV (iShares), PHYS (Sprott), and PSLV (Sprott). Be fully aware that this is not the same as having physical gold/silver under your direct control. You can use these products if you want to store some of your funds in gold/silver instead of keeping them in Federal Reserve Notes. ETPs have low transaction costs, and you avoid the premium when you buy and sell. I personally avoid GLD and SLV. Be aware that there are administrative costs associated with the ETPs. Read the prospectus. For example, they will have vault storage and insurance costs. Typical retail investors in SLV cannot redeem shares for physical metals. Investors in PSLV can redeem shares for a quantity equivalent to a minimum of 10 good delivery bars (about 1,000 Troy ounces) worth about $440,000 at $44/troy ounce.
If you want to purchase commemorative or “collector” coins, that is fine. Do not expect to recover other than the bullion value when you sell. Any premium you pay above spot price will likely not be recovered. Using such coins in the future for barter will likely not be as easy as using junk silver.
Numismatic coins typically have a much higher premium than bullion coins. Additionally, numismatic premiums fluctuate significantly more than bullion premiums. Avoid numismatic coins until you have transferred your Federal Reserve Note-denominated wealth into gold/silver and have studied premiums and know where we are in the premium cycle – expensive or cheap.
Numismatic coins typically come with gradings from NGC (Numismatic Guarantee Corporation) or PCGS (Professional Coin Grading Service.) These graded (or “slabbed”) coins will have a higher premium than circulated grade, so I recommend simply buying circulated coins.
Answering the question of what to buy, my recommendation at current premiums (zero) is to purchase junk silver. If you are going to purchase gold, then I recommend circulated Saint Gaudens and Liberty $20 coins.
The list above is USA-centric and does not address sales taxes. If you are in the USA then investigate sales tax in your state of residence. Here is a link that I found with a quick internet search and may help you. Ask your dealer about your specific situation. Most states do not apply sales tax to gold or silver. Some states tax gold/silver purchases below a certain value. California, for example, taxes precious metals bullion transactions below $2,000 and tax numismatic coin purchases. If you live in the UK then you will want to purchase UK-minted sovereigns to avoid the Value Added Tax (VAT).
Should I Buy Gold or Silver?
Yes, buy both. Because the gold-to-silver ratio is presently around 81, I recommend that you overweight your asset allocation to silver compared to gold. When the ratio is high, silver is “on sale” compared to gold. When the ratio is low, gold is “on sale” compared to silver. As Mr. Rawles has advised, you can ratio trade between gold and silver and end up with more ounces than you would have otherwise. If you ratio trade, then make certain that you include the buy and sell premiums in your calculations. The gold-to-silver ratio highs were recently just under 104 in 2025 and at 125 in 2020 during the plan-demic. The gold-to-silver ratio lows have been 32 in 2010, 40 in 1997 and below 20 in 1979/1980. The most recent USA monetary gold-to-silver ratio was 16:1. Everything goes in cycles. The gold-to-silver ratio cycle is decades long sometimes but sometimes the ratio moves between extremes much more quickly. In 2020 the ratio went from 90 to 125 then back to 65 in less than one year. If you converted gold to silver at a ratio of 125 then back to gold at a ratio of 65 you would have doubled your gold ounces (approximately) less the percentage paid in premiums.
Be aware that silver takes up significantly more space and weighs more than gold of equal Federal Reserve Note value. Let’s assume spot prices of $3,862 for gold and $47.04 for silver. A tube containing twenty pre-1933 Liberty $20 gold pieces is worth about $75,000. That will fit easily in your closed hand or in your jacket pocket and weighs just under 1.5 pounds. $75,000 of silver is about 15.5 100-ounce bars which weighs about 106 pounds and takes up a space 7.2” x 3.2” x 12”. It is much heavier and bulkier than gold, per Dollar value.
How is Pricie Determined?
Think of the gold/silver market as you would think of the stock market, the bond market and other commodity markets. The markets provide pricing information for the trading of stocks/bonds/commodities. You used to have to call your broker to find out current live pricing or wait for the printed newspaper to be delivered. All that information is now available live on the internet. I use the KITCO app to monitor the spot price. Most dealers will post spot price live on their website.
Pricing has “bid” and “ask” components. The “bid” price is what someone is willing to pay. Think of it like someone “bidding” at an auction. The “ask” price is what someone is willing to sell. Think of it like the “asking” price when someone lists their car for sale.
For gold/silver, the price you pay is “spot” price plus a “premium”. When you sell, you typically receive “spot” price less a “premium”. When you shop for your gold/silver, find out the premium you will be paying and compare dealers. Different dealers will have different premiums for different products depending on the overall market and their specific inventory. Are people buying or selling? For example, at the current pricing in September of 2025 you can buy junk silver at spot with zero premium. Giving another example, during the silver squeeze after the plan-demic had started, the premium to purchase for US Silver Eagles was around $15 above spot. And the premium goes both ways. At the same time the purchase premium for US Silver Eagles was around $15 above spot you could sell your US Silver Eagles to dealers and receive $10 above spot.
Be aware that spot price and premium are typically stated as units of currency per troy ounce of metal. Also, be aware of the term “melt”. Some coins do not contain one ounce of gold/silver therefore you will see the premium quoted as Federal Reserve Notes (dollars) above melt. For example, Saint Gaudens and Liberty $20 gold pieces will contain 0.9675 troy ounces of gold and might be quoted as $60 above melt per coin. That is equivalent to $62.02 per ounce. I saw one-tenth ounce gold Maple Leafs advertised recently for $37.50 above melt. That is equivalent to $375 per ounce premium. You are paying a much higher premium for fractional gold compared to a one-ounce gold coin or even a Liberty or Saint Gaudens.
Avoid Getting Ripped Off
There are fake coins out there. First, purchase from a reputable dealer. Second, arm yourself with knowledge and tools.
Purchase reference books:
- The Official Red Book: A Guide Book of United States Coins (most recent 79th edition, 2026)
- Standard Catalog of World Coins 1901-2000
- Standard Catalog of World Coins 2001-Date
Purchase a small scale capable of weighing in increments of 0.01 grams. Precious metals are sold based on weight in troy ounces, grams, or kilograms. One troy ounce equals 31.10348 grams. One kilogram equals 32.15075 troy ounces. And one kilogram of course equals 1,000 grams.
Purchase a set of digital calipers.
If you are dealing with someone in-person, compare the measurements (weight, diameter, thickness) of your purchase to the specifications found in your reference books before you trade your Federal Reserve Notes for gold/silver. They should match within the tolerances stated for your specific coin. If you are unfamiliar with using the scale and calipers, then get some lessons before you make your purchase.
When purchasing, if you are getting a “deal” at more than a few percent below spot then suspect fraud. I have only heard of this occurring on-line with small purchases but never with established dealers.
Gold and silver coins have a distinct ring to them, like a bell. Remember the song “Silver Bells”? Fake coins typically have a dull sound when you try to ring them. Watch a couple of YouTube videos on the subject.
If you are dealing with large purchases or a dealer over the phone, then you should check your coins upon receipt. If you find a discrepancy, contact the dealer immediately. To stay in business, bullion dealers must have good quality control (detection of fakes) or they will lose money and their reputation.
(To be concluded tomorrow, in Part 2.)
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