Did you know that more than 10 percent of people in the United States of America own gold? Investing in precious metals is one of the most effective approaches to diversifying your investment portfolio and growing your wealth. There are many different options for you to make investments beyond gold, with silver and platinum also great for precious metal investing.
If you’re looking to make a good investment that will protect you from economic downturns and inflation then you need to learn more about what it takes to buy gold and silver. The good news is that you’re in the perfect place to learn all of the basics that you need in order to start investing in precious metals.
Keep reading this article to learn more today!
What Are Precious Metals?
When people mention precious metal investing, the first type of metal that comes to mind is always gold. Choosing to buy gold is a great investment because it has held significant worth ever since it was first discovered. Gold and other precious metals are more than just metals, they’re commodities.
These commodities make for great investments because they aren’t tied to the economy or the stock market. If you plan on investing then you want to get commodities that will hold their value even if the economy goes through some hard times. Here are 24 Interesting Facts about gold where you can learn more.
There are certain precious metals that you should put an emphasis on investing in. Gold is the most popular, and one of the most expensive. An ounce of pure gold was selling for $1,700 per ounce in 2021, which means that you should expect to spend some money when pursuing precious metal investing.
Silver is another wonderful option if you’re looking to diversify your investment portfolio. It is much more affordable than choosing to invest in gold, with pure silver costing around $27 per ounce. Silver is great because it has value and a lot of practical uses as well.
You can use silver for photography, dental alloys, as well as batteries. You’ll definitely get your money’s worth when you choose to invest in precious metals like silver.
Platinum is another great option if you’re looking to invest in precious metals. It is expensive due to the limited supply of this metal, but it sells for around $1,600 per ounce. If you want to invest in something besides gold then you can’t go wrong with getting platinum.
Ways to Invest in Precious Metals
There are a number of routes that you can take when you decide that the time has come to buy gold and other precious metals. Knowing your options will help you find the right course for your portfolio and personal finances.
Bullion
Investing in bullion means that you’re purchasing the physical metal of your choice to add to your portfolio. Buying gold bars is a perfect example of investing in bullion when it comes to precious metal investing.
One of the pros of investing in bullion is that you own a physical asset that has a ton of value. You can hold that asset in your hand or keep it in your possession, which has a certain sense of security to it. It is also easy to transfer if the need ever arises since it is a physical asset that has tangible value.
The one major downside to consider when it comes to buying bullion is the space that you’ll need in order to store it. You either need to create a secure space at your home where you can store your bullion or you need to find a trusted and reputable third party to help you store it.
Exchange-Traded Funds
Another option at your disposal if you decide that you want to invest in precious metals is exchange-traded funds. This option is like investing in a mutual fund. There are ETFs that offer you gold, silver, and platinum.
Going this route brings a lot of positives in your direction. These ETFs are quite easy to buy or sell depending on your plans for your wealth. They’re also liquid assets, so they’re great if you need to trade them out for cash in a hurry. Best of all, you can invest any amount of your money into getting exchange-traded funds.
The biggest downside to getting exchange-traded funds is the fact that you have no physical representation for the value. You can’t hold it, which means that it isn’t a tangible asset.
You also run the risk that the company that you got the ETF through goes out of business. If that happens then you’re out whatever amount of money you’ve invested.
IRAs
IRAs are a bit outside of the box when it comes to investing in precious metals, but they’re quite versatile and a great option for maintaining your wealth. You can pull your money out of your retirement fund to put towards real estate, precious metals, as well as private equity.
The biggest benefit that you’ll gain from investing in precious metals through an IRA is the tax benefits. You can defer your taxes on your precious metal investments thanks to your IRA. You also have a ton of different options where you can make investments and grow your wealth even more
You’ll need to be aware that there are fees that will add up when you have an IRA, and the money that you’re investing could get tied up until after you retire. You also run a higher risk of losing money if you’re running a self-directed IRA when you buy gold and make investments.
Start Investing in Precious Metals Today
Investing in precious metals is a great way to protect your wealth when the economy starts going through a hard time. People buy gold because it is immune to inflation and it is independent of the stock market. Consider investing in precious metals through bullion, IRAs, and ETFs for the best results.
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