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How Does Pricing Work with Gold and Silver?

Many consumers are curious about adding gold and silver to their portfolio. For most, it is the missing allocation in their financial portfolio. It is not a complicated strategy, and purchasing precious metals is kind of like adding insurance to your money. The history of the Gold Standard is a good place to start in gaining an understanding of how our paper money used to be backed. During the Roosevelt administration, we lost the Gold Standard when FDR directed on April 5, 1933, for all gold coins and gold certificates in denominations of more than $100 be turned in for other money. Everyone in possession was ordered to turn in coins, bullion, and certificates to the Federal Reserve by May 1 for the set price of $20.67 per ounce.

The Executive Order 6102 led to the extreme rarity of the 1933 Double Eagle gold coin. All gold coin production ceased, but not all gold was turned in – and the minted coins from pre-1933 became private assets held for years with none the wiser. Nearly four decades later, this limitation of gold ownership in the United States was repealed after President Gerald Ford signed a bill legalizing private ownership by an Act of Congress codified in Pub. L. 93-373 – going into effect December 31, 1974.

Today, more and more people are interested in gaining precious metals in their portfolio, but many don’t know where to look for guidance. As with any commodity, there are markups and profits to be realized. There are several companies that sell gold, silver, and other metals, but how is pricing factored?

To address pricing, you must also factor in where you are purchasing your metals.

The commercial companies you see advertised on TV and in magazines are significantly higher priced due to their costs of advertising. When you work with a wholesaler like National Gold Consultants, who work primarily in conjunction with agents who are fiduciaries to their clients, you literally will get a much better price.

How does it work? There is a price differentiation between spot and physical prices. The first question you should be asked when considering a purchase is do you have any metals currently, and do you have the recommended 10%-15% held in your portfolio?

Precious metals, like most quality investment options is also a long-term venture. It is not to be treated like a stock trade.

Physical gold is the major driver behind the scenes, and that doesn’t get reflected in the average charts showing historical performance. For example, during the 2020 performance, paper gold growth ran parallel to the market performance, but the physical skyrocketed and has remained steady despite recent market losses. To reiterate, during Covid, physical gold went up. This is another reason before looking to purchase, it is important to have an expert professional assist in determining the best choices for your specific needs.

Looking to the future, one of two things will happen. If we move into a deeper recession period that drags on for a significant length of time, the physical gold will see another boost in value. Or, if the market conditions begin to improve, gold will remain steady as it has consistently done for the last several decades; it’s doing its job. Either outcome, it is a solid investment to have and one that can ““ensure”” some security within the portfolio. When people ask if it’s a good time to buy gold and silver, the answer is always yes.

For information on where to buy precious metals and get the best value on the product, reach out to us for a free consultation. Email us at or call 775-356-9429.


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