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How to Invest in Precious Metals

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Gold, silver, platinum, and palladium: timeless investments that can help you slowly build wealth while hedging against inflation, economic upheaval, and global chaos.

Unfortunately, investing in precious metals is somewhat countercultural. If the idea seems intimidating, you’re not alone! Fortunately, we’re happy to explain the reasons why you should invest in precious metals and the steps you can take to do so successfully.

What are precious metals?

Precious metals are timeless, tangible, and reliable stores of value. We’ve been using gold as a medium of exchange since 550 BCE. The rarity, beauty, and durability of gold coins and bars made them perfect for buying and selling.

In modern times, most precious metals also have some important technological use that can make them even more valuable.

For example, palladium is used in electronics, dental technologies, and groundwater treatment. Gold is used to create printed circuits, which means if you’re reading this on any electronic device, you’re holding a little bit of gold in your hands right now.

Why is it a good idea to invest in precious metals?

Unlike paper stock, precious metals have “intrinsic” value. That means they’re worth something, almost no matter what happens. You can always melt it down and get the current market value of its weight.

Paper stocks can have a value of “$0.00,” but precious metals never will. They’re highly liquid and easy to purchase. While precious metals can suffer from some price volatility, their value reliably trends upwards over time, especially when held for a decade or more.

Note that we have nothing against paper stocks. Placing money in stock purchases or index funds can help you grow your wealth far faster than gold or silver ever will. We simply submit to you that precious metals are part of a well-balanced, well-diversified portfolio, especially during these uncertain modern times. 

How to Start Investing in Precious Metals

Start by investigating sources of physical precious metals you can buy. Yes, it’s possible to buy a gold or silver EFT, but those products are really just another form of stock. Usually, when you buy an EFT, you’re actually investing in a mining company. Again, there’s nothing wrong with that, but it’s not the same as investing in the physical metal.

Start by determining your investing budget and consider the most value you can get for it. If your budget is very small, start with silver. Even a normal middle-class family can usually afford to tuck a little bit of silver away for a rainy day.

Next, look for coins. Coins are an outstanding way to invest in precious metals for the following reasons.

  1. Coins are beautiful and easy to store.
  2. Coins can attain value above the value of the precious metal, thanks to a robust coin collection market.
  3. When you purchase coins from a reliable dealer and a known mint, you get the peace of mind that comes with knowing you’re getting the exact weights you seek to buy.

Finally, plan on holding your precious metals for a long time. You should consider holding them for a decade or more or even turning them into an heirloom that passes from generation to generation. One reason precious metal investing is so poorly understood is that it’s very difficult, if not impossible, to turn a profit on them in the short term.

Get Started Today

Ready to add precious metals to your portfolio? Talk to us! Our team is ready to answer your questions and help you find the coins that will deliver the most value for your budget.

Call (866) 928-7380 to get started today! 

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