Jim Rogers has never been shy about vocalizing his love of precious metals. Though he has some cautionary sentiment about short-term gold prices given their 12-year bull run, the legendary investor still remains optimistic about the long-term future of both silver and gold. Rogers feels that investors should be loading up on silver and gold coins right now as he notes that they have surged in popularity and that mints have been consistently selling out of silver coins because investors are worried about the future [for more gold and silver news and analysis subscribe to our free newsletter].
Rogers’ opinions seem to reflect those of the masses, as January saw a record 7.5 million ounces of silver coins sold, according to Money Morning‘s Bern Gersten. Gersten also notes that “150,000 ounces of American Eagle gold coins were sold in January, the highest monthly total since July 2010.” Thus far, silver investors have been rewarded in 2013 as the metal has gained more than 5% YTD while gold has been able to rake in meager gains of 0.1%.
But one thing that is very important to note is that these purchases are being made in the form of physical bullion, not investment securities. That means that these buyers are not in the market to speculate; they are there because they truly believe that these precious metals will appreciate over time. Gold, especially, has been the subject of a fair amount of speculation in recent years, as many have used it as a way to protect themselves against every little market blip [see also The Dangerous Sign Jim Rogers Sees For Gold].
For those looking to purchase physical precious metals, we outline the best ways to make an allocations to gold coins and silver coins. The two aforementioned guides walk investors through where they can both purchase and store bullion to keep their allocations safe. Of course, not everyone is comfortable with physical purchases, or they simply do not want to deal with the commodities themselves. In that case, you can take a look at the SPDR Gold Trust (GLD) and iShares Silver Trust (SLV), both of which are ETFs offering physical exposure to their respective metals.
Disclosure: No positions at time of writing.