Should I Buy Gold Bullion or Silver Bullion? While both gold and silver have attractive features, gold is the better investment for the average precious metals investor. This is because silver has many industrial uses. As such, silver can be attractive during down cycles when the price of the metal is cheap.

Do you have to report gold and silver purchases?

Reporting Requirements Instead, sales of physical gold or silver need to be reported on Schedule D of Form 1040 on your tax return. 3 Depending on the type of metal you are selling, Form 1099-B must be submitted to the IRS at the time of the sale, as such sales are considered income.

When did the price of silver go up?

However, in 2004 silver began to turn upward, rising to close to $16 per ounce at the beginning of the financial crisis in 2007. But even with the onset of the crisis, the price fell by nearly 50% by the end of 2008. Then it began the second major upturn in price that confirmed silver as a legitimate crisis investment.

What was the price of silver in 2008?

Then it began the second major upturn in price that confirmed silver as a legitimate crisis investment. From a price level of less than $9 in late 2008, it reached nearly $50 per ounce in 2011. That’s a return of more than 500% in the space of less than three years.

How much should you invest in gold and silver?

So how much should you invest in gold and/or silver? Most experts recommend you hold somewhere between 5% and 10% of your investment portfolio in gold and silver. That would include either or both bullion or gold-mining stocks and/or mutual funds.

Is the price of silver a true investment?

Silver is not a true investment since it does not generate a product or service. Silver has value in and of itself, as both a precious and an industrial metal. But it’s otherwise inert. It doesn’t produce anything, generates cash flow, or provide a steady income. Silver is more in the realm of speculation than investment.