Investing in Precious Metals 0
Seeking a hedge against inflation? Looking for a safe place to hold your money? Then investing in precious metals may be what you have been looking for. Investing in Precious Metals is a great way to diversify our portfolio. Buy spreading your money into multiple metal markets you increase your ability to earn a handsome return on your investment.
People usually buy precious metals in the form of coins, which is commonly referred to as bullion. NOTE- some coins have higher prices than their “spot price” (the value of the actual precious metal in them) this is called “numismatic value”. It is usually because they are a hard to come by coin that is highly sought after. It is normal for coins to be sold a dollar or two over the spot price, this is called the premium.
The main four precious metals that you need to concern yourself with are Silver, Gold, Platinum and Palladium. When thinking of investing in these commodities. One needs to understand the industries that these metals are mostly used. Lets look at each one and identify their strengths and weakness pertaining to how the influence the market.
Silver has always been a solid investment. Staying relatively calm in the last 5 years, most experts agree that an investment in silver is one of the safest you can make. Silver has found its way into medical antimicrobial uses, making its future in the medical field very interesting.
Gold has always been the most sought-after precious metal in history. Over 161,000 tones of gold have been mined over the course of humankind. With this said we have seen gold jump to its highest price in history. Therefore, I would be hesitant to jump right in and invest a good amount of money in the gold market. Gold Fields Ltd and AngloGold Ashanti Ltd are the leading companies in gold mining. China has now become the top country in gold mining and is projected to drive down the price of gold in the up and coming years.
Platinum has been fairly commercialized over the past 10-15 year by celebrity jewelry designers. The fact is over 75% over the worlds Platinum is used in automobile emissions control. So when investing in Platinum do not think jewelry think auto industry. These are the forces really make the market move.
Palladium is a lesser-known precious metal but still worth the investment. Again, the main applications for Palladium is its use in catalytic converters. As the auto industry fluctuates so does the price of Palladium.
They each have different price patterns in the market and you will need to study them before making your choice.
Once you have decided which metal you are going to buy, decide when you will buy. I really dont know anything about predicting the patterns of prices, so i just wait for a dip in price and buy. I would highly advise against buying online. I know there are places that are reliable but my paranoia just forces me to buy locally. ESPECIALLY AVOID the sites that just give you a receipt and hold the coins for you, there is no telling when one of those firms will go out of business and say “sorry cant give you your gold”.
I highly recommend finding a local coin dealer and walking in with cash. (you can call in before to make sure they have what you want in stock)
This is the safest method for buying precious metals. Usually local dealers sell with a lower premium than large online dealers, so there’s another advantage. It leaves almost no room for scammage. When you buy your bullion, you can ask them to weigh it in front of you to make sure you are getting what you paid for. (this is probably just me being paranoid, but hey its my hard earned money and i don’t want to be scammed out of it!)
Finally, once you have your bullion, STORE IT IN A SAFE PLACE!!! A safety deposit box at a bank is somewhat risky with all the bank scare going on, So i go with a fireproof safe, bolted to the floor in my closet. Make sure you are the only one who knows the combination code (and others who you would trust to the hilt).
Continue to watch the prices of the metals yo have and read up on the goings ons in the market. You may end up making some profit!
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