How to Invest in Precious Metals

Did you know that there are 171,300 tons of gold above ground in the world? At least, this is what some figures say.

It’s difficult to quantify exactly how much gold there is, just as it is with any precious metal.

Despite not knowing this fact, we do know that investing in precious metals is beneficial. Keep reading to learn how to invest in precious metals.

Physical Gold and Silver Coins/Bullion

One of the oldest ways to invest in precious metals is to buy physical coins or bars. The physical approach is fast, easy, and safe. You can buy them through a reputable vendor and store them in a safe place.

Buying an ounce of gold will go a long way in your investment portfolio diversification.

Owning some gold and/or silver is a good idea. If you are ever hit by devastation, having some hard assets on you will be helpful. You can’t always rely on electronic payment networks and banks to provide funds during a crisis.

Stash physical gold and silver in your home for times of emergency. If you want to own a lot of physical assets, store some of them at an off-site location with security.

Gold and Silver ETFs

Learning how to invest in gold and silver ETFs is simple. You can buy one or more exchange-traded funds (ETFs).

ETFs are liquid assets that you can buy and sell through your brokerage account. This makes it easy to rebalance your portfolio without the hassle of a complex buying or selling process.

As ETFs become more common, they will become cheaper to purchase. Keep in mind that most ETFs aren’t redeemable for silver and gold. You won’t have these assets in hand.

Miners and Royalty/Streaming Companies

If you purchase precious metals through mining companies, you’ll have a lot of options. You can also invest in ETFs that hold miners.

The benefit of buying precious metals using this method is that miners get around a lot of the problems that come with precious metal investing. Miners can produce cash flows and sometimes pay dividends.

However, when it comes to gold miners, it’s normal to be wary. Gold miner stock prices might go up or down by quite a large margin. When you buy physical assets, you don’t have to worry about this volatility.

Gold miners might go bankrupt before the price of gold rises again. In an irrational market, this method of buying precious metals isn’t the best option.

There are only a few companies that aim to increase shareholder value. Most gold mining stocks aren’t great.

If you wish to invest with this method, consider doing a lot of research before blindly investing in a mining or streaming company.

Invest in Precious Metals Now!

You’ll experience a lot of benefits when you invest in precious metals. If you purchase physical assets, you benefit from low risk and low volatility.

ETFs and mining companies are subject to the same volatility that the stock market is, so it might not be in your best interest to take on this risk.

Consider these options and come back for more informative posts like this on our website!

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