A Beginners Guide to Investing in Precious Metals

The biggest investor in gold is the US government who has 8,133.5 tons of gold hidden in vaults throughout the country. It’s worth about $350 billion. Many Americans have followed the government’s lead and have also invested in gold and other precious metals. 

If you think you want to invest in precious metals, then you’ve come to the right place. This article will help you get started with the basics of investing in precious metals. 

Know Your Metals

Four precious metals get the majority of attention when it comes to investing. Look at gold, silver, platinum, and copper. 

Gold 

Investors like gold because it has a secure store value that you hold in private inventory. You can steadily grow your collection, and ideally, it’s value per ounce will also increase.

Gold is a smart investment against inflation. When the economy struggles and stocks plummet, gold values rise. If world events cause money to become worthless, gold still has value for securing needed survival items.

Silver 

While silver may not have as strong of a store value as gold, it’s still an excellent investment. This precious metal also has useful applications in electronics, batteries, and superconductors. This helps to stabilize the investment value. 

Platinum

Investing in platinum can give you a chance at higher-earning values than gold and silver. However, there’s also greater risk. Platinum is a rare metal, making it a higher value than gold and silver during strong economic times.

Platinum has a demand in high-class industrial applications, automotive oil production, and medical instruments. During economic declines, the demand for platinum also decreases. This causes the value to also decline.

Copper 

Industrial demands for copper help to keep its investment value an attractive one. If the economy is strong and industrial production is flourishing, then copper can boast high returns. This is because copper is the metal of choice for wires in anything that needs to conduct electricity.

Because copper is a semi-precious metal, it’s a more affordable investment than the others in this article.

How to Buy Precious Metals

If you’re ready to begin investing, you need to decide how you’ll go about it. The most obvious is to buy physical metal. You can do this by purchasing bars, commemorative coins, rounds, bullets, coinage, or other bullion forms. 

You can order your precious metal bullion from online providers like Investor Crate. You’ll pay them for your chosen metal, and they will mail it to you. You’ll want to shop around; prices can vary based on current precious metal prices and markups.

Other options are less tangible. Consider investing through an ETF, common stock, mutual fund, futures and options, and stock certificates. These options won’t let you hold the actual gold but are much easier and faster to trade.

Invest in Precious Metals Today 

If you are looking to diversify your investment portfolio, then it may be time to invest in precious metals. The best place to start is to determine your budget. Then you can look at the precious metal’s prices today.

Invest in the metal that you can afford and offers a level of risk that you are comfortable with. Then monitor your investment to ensure you get the most out of it.

Check out our other articles for more helpful advice on how to reach success in your life.