If you are either a beginner investor or a seasoned market hawk looking to diversify your portfolio, investing in precious metals may be the right decision. Comprising a $182 billion global market, precious metals are a cornerstone of any attractive investment vehicle.
While they are not as new and flashy as commodities such as crypto and tech stocks, precious metals have proven to be a durable and reliable asset for investors for centuries.
If you are new to the market and wondering how to invest in precious metals, you have come to the right place. Read this essential beginner’s guide to investing in precious metals to find out the essential things you need to know before you invest.
- How to Go About Investing in Precious Metals
If you are wondering how to invest in gold and precious metals, it is worth explaining what this task actually entails. First, it is important to point out that you should not try to take physical ownership of any precious metals you invest in.
The vast majority of investors in gold, silver, and other metals will use a broker or investment platform to buy up their metals, which will remain stored in a secure vault.
You can, of course, take physical ownership of bullion, coins, and bars. However, doing this will make them extraordinarily difficult to sell, while delivery and storage costs may be as much as what you paid for the metals in the first place.
- Gold is Still Good
If you are trying to find the best precious metal to invest in now, you will likely be told that gold is the go-to. This is especially true in times of economic and social turbulence such as right now, as gold is traditionally seen by investors as a “safe haven” asset that will not lose value.
Gold is durable, never deteriorates, is always in demand, and is incredibly easy to buy and sell on the global marketplace at a transparent price. While gold is not the only precious metal worth investing in, it is an important hedge against uncertainty in any good investor’s portfolio.
- Alternative Metals Are a Winner
That being said, gold is not the only option. Many investors are finding that silver is a more attractive precious metal, owing to the fact that it offers all of the benefits of gold at a much lower price. As this expert silver buyers guide explains, you can buy silver coins, bars, and rounds as an asset.
Silver is easier to take physical ownership of, especially if you’re opting for smaller assets such as silver coins. However, you can invest in silver via an online investment brokerage as part of a precious metals portfolio. Other attractive metals to invest in right now are platinum, palladium, and copper.
- How Liquid Are Precious Metal Assets?
One of the benefits of investing in precious metals is that there is always a market for them, meaning that, should you need to quickly liquidate your assets, you will be able to do so. If you own precious metal ETFs, you can usually sell them online in a matter of minutes for a price determined by the global market.
However, if you physically own precious metals such as gold bars, the selling process will be more cumbersome. It is for this reason that such investments are considered long-term, lifelong investments.
Your Finance Questions, Answered
Now that you know all of the essentials for investing in precious metals, it is time to learn more about how to future-proof your finances and build a portfolio that will offer the security you need. For this, we have got you covered. Make sure to consult our expertly-curated Finance Guides for all of the latest investment advice.
