Exploring Precious Metal Investment Options
Precious metals, specifically gold and silver, are among the most commonly used vehicles to preserve wealth by governments, banks, and everyday people. Gold, in particular, has a track record spanning thousands of years of protecting purchasing power. It’s no wonder that governments and banks can’t get their hands on enough of it, and their demand continues to grow year over year. Individuals, on the other hand, by and large, do not own precious metals. Only 1% to 3% of individuals in the United States own gold.
The average person is asleep at the wheel when it comes to precious metals. It’s time the working class stops getting ripped off by inflation and instead allows the unstoppable force of inflation to increase the value of their real assets like precious metals. It is mid-2025 as I write this, gold is near all-time highs, and silver is at multi-year highs. After years of research into the precious metals markets, it is my full and honest opinion that both gold and silver remain incredible buying opportunities. Gold has demonstrated remarkable strength over the last few years, and the tailwinds that brought it here are extremely likely to continue. Central banks and governments have caught on to this fact and are buying as much as they physically can.
Unfortunately, it looks like most individual investors will miss out on the coming precious metals rally. I have nothing to sell you, and I gain nothing if you choose to purchase precious metals, but it is my mission is to increase individual ownership. Big banks see the inflation writing on the wall (they are creating inflation) and are positioning themselves to protect against it. It’s time for you to stop getting robbed blind by inflation and start protecting yourself through real assets!
Precious metals remain as one of the few tools accessible to the working class to protect the purchasing power from inflation. However, you must be educated on the different precious metal types, what’s best for your situation, and how to get the best value for your dollar. This article will walk you through the different investment options, from great, to okay, to terrible.
Coins
Coins are minted by governments and often carry legal tender status. For example, the United States mints Silver Eagle coins, which are legal currency and have a face value of $1. Canada mints the Silver Maple Leaf, which has a face value of $5. There’s a good chance that even if you aren’t a precious metals investor, you’ve heard of one of these coins. Coins are highly trusted and in high demand. Because of this, they are highly liquid, but they also typically come with higher premiums over spot price due to their advantages.
Seasoned investors like to buy coins because of this high trust, the presence of modern security features, and the confidence that a buyer will always be there if they need to sell.
I tend to point new investors to the next category of precious metals, typically because it allows them to purchase the most metal for their money.
Rounds
Rounds look like coins but are privately minted and not legal tender. They’re valued solely for their metal content and usually cost less than coins, making them ideal for stacking silver or gold affordably.
The most common type of round is the Gold or Silver Buffalo round. Many mints produce these rounds, and they are popular among precious metal stackers. Buffalo rounds are beautiful, have a large market, and tend to carry some of the lowest premiums among rounds. The Buffalo round is a favorite among both new and seasoned investors.
Bars
Bars come in a range of sizes, from 1 gram to 1 kilogram, and are a cost-efficient way to invest in bulk. Trusted mints like PAMP, Valcambi, and the Royal Canadian Mint offer bars with high purity and serialized authentication.
Bars are fantastic for long-term investors. They’re a great way to stack metal at rock-bottom premiums. However, they can be difficult to sell because fewer people are interested in them. It’s not uncommon to be paid under spot for bars, which is why they only make sense for long-term investors. After many years of owning a bar, it should have appreciated enough to still provide a good return on your money.
Frankly, I’ve avoided large bars (over 5 ounces) for the most part. I find that holding smaller denominations, particularly rounds or coins, gives me the most options. I can sell, trade, or barter smaller denominations much more easily than large bars. Portability is also a factor if you need to move your metal for any reason.
Many investors love bars, but I think they’re best suited for large purchasers (like banks) who will place them in a vault for a very long time.
Junk Silver
Junk silver, also known as constitutional silver, refers to U.S. dimes, quarters, and half dollars minted before 1965 that contain 90% silver. There are also 1965-1970 half dollars that are 40% silver, but are less popular and harder to sell.
From an investment perspective, junk silver offers several advantages. It typically carries lower premiums than modern bullion coins, making it a cost-effective way to stack physical silver. Its small, divisible denominations also add liquidity and barter flexibility, which some investors value for potential use in emergencies.
Over the long term, junk silver performs in line with the spot price of silver. While it lacks the modern security features of coins like Silver Eagles, its historical status and metal content give it strong demand. Compared to rounds and bars, junk silver can sometimes offer slightly higher resale premiums due to familiarity and history as legal tender.
Junk silver is one of my favorite pieces to add to my stack on a regular basis. They become increasingly more rare each year, and the historically low premiums make junk silver a great buy right now.
Goldbacks & Silverbacks
Goldbacks and Silverbacks are innovative forms of metal based currency notes. Goldbacks are small-denomination notes made with embedded gold, combining portability with real metal value. The technology is impressive and currently very difficult to counterfeit (I’m not aware of any confirmed cases of counterfeits for Goldbacks or Silverbacks).
Metal-backed notes are very similar to rounds in that they come in different denominations. I own a few, and they’re very fun to hand out as gifts. Most people have never seen one. However, premiums can be very high due to the complex minting process for these notes, sometimes upwards of 100%. Although investors often recoup most of the premium when selling, this is not always guaranteed.
I would not recommend Goldbacks or Silverbacks as a tool for stacking as much gold or silver as possible. However, they can be a great addition to your collection or a fun gift to help educate others about precious metals.
Shot (Gold or Silver)
Precious metal shot consists of small granules used in jewelry-making or casting. While not as common among investors, some stackers buy shot for its lower premiums. I do not recommend buying shot as an investor or stacker. It has a very limited market, and you typically receive only melt value, if you can find a buyer.
Some people purchase shot to forge their own bullion or jewelry, but it is typically not used for investment purposes.
Jewelry
Gold and silver jewelry can serve dual purposes: adornment and wealth storage. While often subject to higher premiums due to craftsmanship, jewelry can be a culturally significant and portable way to own precious metals.
Although jewelry doesn’t appeal to many from an investment or stacking perspective, there are scenarios where focusing on jewelry can make sense. If you have experience with jewelry and can make educated purchases, it may be a viable investment. Jewelry can also appeal to individuals who find traditional bullion uninteresting.
Jewelry may also be of interest to those carrying wealth internationally. Only a limited amount of bullion can cross borders at a time, while there is no limit on jewelry.
Final Thoughts
Each precious metal investment option has its benefits and drawbacks, depending on your unique circumstances. For the typical reader of this article, it’s best to stick to coins, rounds, and constitutional (junk) silver. Avoid purchases that will be difficult to sell or store. Don’t forget to enjoy the hobby, and occasionally buy pieces you enjoy. Every stack tells a story. How does yours read?
As always,
Stack it high, stack it proud.
Thanks for reading.
