Whether you’ve invested in stocks, bonds or equities, a keen investor who’s always on the ball about the recent thriving investments and economic inflation is always willing to expand and diversify investments through precious metals. The thing that drives forward-thinking investors into this is the volatile stock market, currencies, economic, and geopolitical situations. With due diligence, thorough research, and a bit of expertise, keeping an eye on the inflation of precious metals pricing should be the initial step, and selling to true-blue buyers should be the next.
What Are the Precious Metals and Their Values?
One of the most sought-after precious metals investments is the yellow metal or gold. Sitting on the chart at $1,198.20 per ounce, this is, without a doubt, the most expensive metal in the entire world. Why wouldn’t it be? Gold is traditionally a symbol of wealth. Before paper money was developed, gold was used as the major currency. Gold is also crucial in the electronics industry because of its resistance to corrosion.
Silver, also known as, gold’s cheaper cousin or the white metal, is taking an upturn in the silver coins’ investments. With a value of $14.78 per ounce, it’s a very affordable metal which allows everyone to buy and sell, if you’re the avid precious metals investor. Silver is also gaining more supply and demand than gold,especially in India. With a population of around 1.2 billion, silver is the most run-of-the-mill metal used for jewelry and gifts, specifically at Indian weddings! It’s definitely a dime a dozen (pun fully intended) out of all precious metals!
While platinum and palladium are neck and neck at $ $795.80, and $928.30 per ounce, respectively. Platinum plays a huge role in industrial usage because it’s often integrated into medical equipment, automotive parts, electronic gadgets, and even the computers you’re using now! On the other hand, palladium serves as a catalytic converter in automobile exhaust systems because of its capacity to withstand supreme temperatures and oxidations.
Investing in Precious Metals Vs. Stocks and Bonds
The trend of investing in precious metals than in stocks and bonds has been unwaveringly proliferating in the last couple of years. As opposed to investing in stocks and bonds, putting your money on precious metals is a safer way than fiddling with fickle currencies, equities, and the stock market. Needless to say, it’s also not a sure-fire way of growing your investments portfolio but diversifying can help you leverage some of your investments positively.
What Are the Top 3 Ways to Invest in Precious Metals?
1 Physical Broker or Online Broker/Platforms
If you are a neophyte in precious metals investments, hiring a broker or online broker is a great way to jump-start your investments portfolio. Hiring a broker will involve higher fees in return for access to investment platforms to invest in precious metals together with perpetual advice and guidance to help you make better choices. On the flip side, online brokers will give you access to the precious metals market without the bundle of agent fees. Of course, you’ll have to be on the constant lookout and be on your toes when you’re buying and selling precious metals without the expertise of an agent.
When you buy and sell precious metals, you can create an online IRA (Individual Retirement Account) or IRA-approved depositories and move your funds through these platforms. This method is quite similar to buying and trading stocks and bonds.
2 ETF (Exchange Traded Funds)
If you’re looking for a much lower operating cost when buying and trading precious metals, ETFs have extrusive advantages over other methods such as trading flexibility, diversification, risk management, and tax benefits. It’s important to note, however, that investing in ETFs doesn’t mean you’re going to own bars, bullion or gold/silver coins, it means you will be compensated in cash as your investment equivalent.
3 Buying Bullion Coins
Bullions coins are specifically minted by government agencies or private institutions for investment purposes. These coins are made of precious metals, like gold and silver, with a purity of over 90 percent. The main reason why people invest in bullion coins is to combat changes in precious metal values or for collection. But these are very limited so try to get first dibs from government mints as they are the most reliable sources for bullion coins.
As you know, the value of gold rises when the dollar weakens. So when you purchase bullions coins, it hedges you from an investment risk against currency or stock trading. Economic instability, in most cases, has an equal and opposite reaction to the value of precious metals. Buying bullion coins can offset stock portfolios which aren’t in the black, so when you have all the bullion coins in your possession, and if the stock market begins to rise again, then it’s time tosell and reap the fruits of your investment labor.