There are many different ways that you can save up for the future, like investing in stocks, real estate, or just placing it in a bank to earn interest; but probably the best way you can save your money, and keep it protected as well, is to invest it in precious metals such as silver, gold, and even platinum. In this article, you will learn about the many benefits of precious metals and where you can get them.
Benefits Of Investing In Precious Metals
There are many benefits of investing in precious metals, and one of the best is that they can serve as a hedge to protect your assets against the effects of inflation. Since the value of silver, gold, and other precious metals are pretty much constant all over the world, their value will not be affected even if the your country’s currency falls (as many have in recent years).
Another good reason for investing in precious metals is that they are easier to store and keep track of. When you have precious metals, you have the choice of keeping them in your own home in a safe, or you can rent a safety deposit box in a bank.
It is also pretty easy to keep track of the value of precious metals by following the market spot price. Because their value do not fluctuate too much, you can easily find out the value of your investments at any given point in time.
What Kinds Of Precious Metals Can You Invest In?
As said earlier, there is a wide variety of precious metals that you can invest in; like silver, gold, platinum, you can even get some unusual ones like palladium, rhenium, and rhodium. They also come in different forms, like bars, coins, bullion, and jewelry; though it is typically unwise to invest in jewelry because you will need to pay a premium depending on who designed and made them. The value of jewelry also fluctuates unpredictably, so you really do not know if it will even rise in value or just how hard it will depreciate.
The most favorable form of investment is in bullion, these are coins and bars. Typically with bullion coins they do not usually have any numismatic value; and the most desirable precious metal to invest in is currently gold.
Reasons Why Gold is the Best Choice
There are many reasons why gold is the most preferred precious metal to invest in; here are some of them:
- Most gold bullion coins have extremely high purity. Unlike most silver bullion coins that typically have 0.925 purity, gold bullion averages at 0.999 purity, meaning there are essentially no other base metals added in making them.
- Gold has a higher demand, so its value will most likely rise. Though gold is often used in jewelry, there are other uses for this versatile metal. Gold is actually a good conductor of electricity; and you may not know this, but most of the electronics in your home actually have gold components in them. With such a high demand, gold will only rise in value in the foreseeable future.
- Gold is easily procured. You can get gold from most banks, and there are even some online companies that sell gold in all shapes and forms.
Tips On Investing In Gold
Though it is said that gold is a good, stable investment, there is still a possibility that it will depreciate (like with any investment). So you need to be careful not to place all of your money into precious metals such as gold; it is still better that your portfolio has some variety in it. Many of the world’s richest people may invest anywhere between 25%-50% of their wealth into gold.
Do not expect to get fast profits from gold and other precious metals. Even though their values are constantly on the rise, it needs to be viewed as a medium to long-term investment.
Where Can You Get Precious Metals?
The most common places where you can get precious metals are from banks and other financial institutions, and these are the most secure places that you can purchase from. You can also get gold and silver from the likes of pawn shops but this is not recommended!
These days, thanks to the internet, you can now purchase precious metals from reputable online sellers, which is very convenient because you no longer need to leave your home to make your investments. The added benefit is that you can often sell the gold back to them in the future if you wish. But as always, you need to be careful about the online companies that you do business with. Make sure that you only deal with companies that have an outstanding track record, have a good reputation and are fair in pricing with years of experience.
There are only few other investment options that can provide the same kind of security that precious metals do. If you want something that can protect your assets, and can even provide you with almost risk-free profits, then you should place at least some of your money in precious metals; you will most certainly not regret your decision.