investing in Precious metals

investing in precious metals

putting resources into Valuable metals

When the world seems to be spinning out of control and the news cycle is full of terrible news, you could be tempted to make some poor financial decisions, such as going all-in on a "better" bartering system based on commodities like gold or silver. But, before you put all your money into precious metals, let's clear up some misconceptions.

silver ira 

401k gold IRA rollover

Precious metals investing is

Gold, silver, and other precious metals have long been prized and regarded as the most valuable things a person could possess, but are they good investments?

investing in gold 

It's easy to get caught up in the adventure and mystery of gold panning during the gold rush, pirate ships, and treasure maps when you consider the world's infatuation with gold. It's no surprise that we've been taught that gold is the most precious possession we can have. Is that true, though?

Nope. Sorry to burst your 24-karat bubble, but gold isn't as valuable as you believe. Since President Richard Nixon halted the practice in 1971, the US dollar hasn't been able to be turned into gold. People used to acquire gold bars as a means to diversify their financial portfolios and protect themselves against inflation. Some individuals still do this, but instead of burying gold bars in their backyards, they purchase gold-related equities or mutual funds. But pay attention: because the dollar is no longer guaranteed by gold, buying the precious metal won't benefit you if inflation occurs.

So, if you decide to buy gold because you believe you'll be "one of the wise ones" if the currency falls, you might as well be flushing your money down the toilet.

invest in silver

You probably think of your grandmother's cutlery (and the time she paid you to clean every spoon she possessed) or your favorite jewelry when you think of silver. However, you're unlikely to associate it with mirrors, dental fillings, batteries, or even those touchscreen gloves you received for Christmas.

Some individuals feel silver is a better investment than gold because of its lower price, believing that if the markets ever move in their favor, they will earn a higher return. But here's the truth: Silver (like gold) isn't the key to a secure financial future. In a crisis, gold and silver values are so volatile (and have been for a long time) that the only thing you can do with them is hope that someone will take your silver coins or watch in exchange for a bag of toilet paper or a can of petrol.

recommendations for making an investment in valuable metals

Investing in precious metals may be done in two ways:

1. Buying gold, silver, or platinum in their purest form
2. Investing in a gold-themed exchange-traded fund (ETF) or mutual fund

You might think you've struck gold when you acquire the precious metal outright (literally). You have the security of being able to handle your investment in the form of gold bars or silver coins in your hand, just as when you hold a dollar note (or stuffed in your safety deposit box).

types of investment costs for precious metals

Physical ownership of bars and coins comes with a price tag that includes insurance and storage. Annual management fees are charged by ETFs and closed-end funds to cover costs and generate a profit for the management firm.

• We'll go through some of the potential charges here:
• Fees for establishing an account
• Fees for transactions
• Account fees are charged on an annual basis.
• Fees for wire transfers
• Fees for storage
• The price of precious metals 

investing in precious metals vs stocks

Many of our website visitors are familiar with typical investment vehicles such as equities, but not so much with gold and silver.
Stocks are classed as "equities," implying that the shareholder owns a piece of the corporation that issued the shares, whereas precious metals are classified as "commodities," implying that the metal owner owns a distinct, tangible commodity.

Stockholders profit when the firms in which they own shares gain earnings or improve their financial condition, resulting in higher demand for the company's stock and, as a result, a rise in its price.

Precious metal investors profit when demand for precious metals rises, resulting in a rise in the "spot price" of their metals.