Precious Metals for Multigenerational Legacy Planning

Providing for future generations is more than just money - it's about values, opportunities, and security. Precious metals have helped families preserve and grow their wealth for centuries. Their unique properties make them ideal for passing down your legacy. 

Learn how to start your legacy planning by investing and trading precious metals in the market. We will also teach you where to sell your investment if needed.

Value of Precious Metals in Legacy Planning

Warren Buffett refers to gold as a way of "going long on fear." While the psychology of fear moves precious metals prices in the short run, their underlying physical attributes make them ideal for legacy planning. 

Platinum, palladium, silver, and gold each have intrinsic value due to global demand and limited supply. Nations and citizens have placed their trust in precious metals to preserve purchasing power for centuries.

Modern currencies come and go. But precious metals remain stable stores of value across generations. Families aiming to pass down lasting wealth should consider allocating a portion of their assets to physical gold and silver. 

These tangible assets have proven their ability to provide financial security over the long term - making them suitable for incorporating into your legacy planning. 

You might also like to read: Are Gold Bars A Good Investment For Retirement?

Getting Started with Precious Metals

If you're new to investing in precious metals, there are a few ways how you can add physical gold, silver, platinum, and palladium to your investment portfolio:

Bullion Coins

Government mints issue gold and silver coins specifically for investors, ranging from smaller sizes like 1/10 oz up to one full troy ounce. Popular bullion coins include the American Gold Eagle, Canadian Gold Maple Leaf, Australian Gold Kangaroo, and American Silver Eagle.

Precious Metal Bars

Precious metals refiners produce gold and silver bars in various sizes, typically 1 gram to 1 kilogram (32.15 troy oz). Larger bars may be easier to store, while fractional sizes allow you to dollar cost average.

Rounds

When it comes to precious metals, specifically gold and silver, there are privately minted discs commonly known as "rounds." Although these rounds are not considered official legal tender, they contain the exact weight of gold or silver as the coins issued by government mints. 

In other words, the value of these rounds is primarily based on their gold or silver content rather than their status as official currency.

Proof Coins

Collectible proof coins are meticulously crafted to have a highly polished, mirror-like finish that enhances the coin's intricate details and artistic design. These coins are stunning and carry a more significant value due to their rarity and exclusivity. 

Though they may be pricier than regular coins, collectors often consider them valuable works of art that can be proudly displayed in their collections.

This article may pique your interest: 6 Notable Coins With Their Numismatic Value

Jewellery

Jewellery makes up about half of the annual gold demand. While not the most cost-effective way to invest, jewellery ensures your metals are always close at hand. Jewellery is easier to liquidate in small quantities if needed.

Exchange-traded Funds (ETFs)

If you want to invest in precious metals such as gold and silver, consider using Exchange-Traded Funds (ETFs) such as GLD and SLV. These ETFs provide direct exposure to the prices of these metals without the hassle of storing physical bullion. 

However, keeping a portion of your holdings in physical form under your direct control is advisable, as this can provide additional security and diversification to your investment portfolio.

Determining how much to invest depends on your overall asset allocation strategy and level of diversification. Many advisors suggest keeping 5-10% of your portfolio holdings in precious metals as a hedge. 

Consulting a financial planner can help you decide what makes sense for your legacy planning goals and risk tolerance. They can also help you integrate precious metals with investments like real estate, stocks, and bonds.

Find insights in this article: Risks And Opportunities In Gold Mining Stocks

Selling and Liquidating Your Metals

When the time comes to sell or liquidate a portion of your precious metals, these are your options:

Sell Back to Dealer - Most dealers will repurchase coins and bullion bars, similar to trading in a car. This provides quick access to cash, though it may not get you the best price.

Sell on Exchange - For larger volumes, you can sell through precious metal exchanges at a spot price and lower fees. Exchanges include COMEX and NYMEX.

Sell via Online Platforms - Websites like APMEX, JM Bullion, and Money Metals Exchange connect you with buyers. You can compare purchase offers.

Sell to Collectors - Rare and vintage coins may command higher premiums when sold to dealers or collectors. Auctions are another possibility for unique pieces.

Jewellery Buyers - Pawn shops, jewellers, and gold/silver buyers will purchase jewellery made from precious metals. It may not get total melt value, but it is easier than selling pure bullion.

Retail "We Buy Gold" Locations - Widespread retail locations that buy gold, silver, and jewellery at discounts—quick but lower profit.

Refineries - Large refineries will repurchase your metals and melting into bars or coins again. Only deal in bulk volumes.

Selling gradually over time is recommended rather than all at once. Work with your financial advisor to develop the right liquidation plan for your needs and market conditions. 

Consider giving this a look: What Determines the Price of Gold?

Conclusion

Precious metals like gold, silver, platinum, and palladium have unique properties that make them well-suited for legacy planning and passing down generational wealth. Their intrinsic value and historical role as stores of value can provide security and stability for your family's financial future. 

When considering precious metals for your investment portfolio, be sure to consult a financial advisor to determine the proper allocation and strategy based on your specific circumstances and goals. 

Investing in precious metals requires research and planning to find the best buying options, storage solutions, and eventual exit plans. 

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