Investing in Precious Metals

If you are reading this article, you are more than likely ready to take the plunge into investing in precious metals. Congratulations! Precious metal investments can be one of the safest and most lucrative long-term investments you’ll make. However, investing in precious metals is not free from its dangers, so let’s take a look at all that precious metal investing entails.

Why Invest in Precious Metals?

I don’t need to tell you that the stock market has crashed in the last few years (unless you’ve lived under a rock!). Investing in the stock market nowadays may seem too dangerous for many investors. While investments should always be as diversified as possible and the stock market may be a great place to continue to invest a portion of your funds, investing in precious metals has become more popular recently; the relatively stable market in gold, silver and platinum investing and the returns over time have become more appealing to some.

How Do I Invest?

Investing in precious metals can be accomplished in a few ways: you could invest in bullion, or you could invest in the stock market versions of precious metals (ETF). Bullion is the physical form of the metal, and the ETF is the “paper” form. Let’s look at each.

Bullion, the physical form of your precious metals, is available in coins or bars from the US Mint, other governments or dealers (coin shops). To obtain your metals, you simply purchase the amount you would like in the purity you prefer, and you receive your metal.

ETFs (Exchange-Traded Funds), on the other hand, work on the stock market to provide you with a portion of silver. To accomplish this, the company that offers the precious metals to you for purchase must actually keep the physical metal in a safe place. You simply buy the portion that you wish, and the ETF holding company sends you a certificate for the value.

How Do I Get a Good Deal?

Before purchasing any precious metals, you should always know your dealer, know the current market rate for the pure metal you wish to purchase, and know how pure the metal for sale is. Knowing your dealer may be the easiest part to getting a good deal; governments and reputable coin dealers in your area should offer the most security. The market rate can be found on a trusted internet site, and finding the purity of the metal can be accomplished through internet research as well.

When you first begin buying precious metals, it may seem a daunting task. However, with a little knowledge and a trusted dealer, investing in precious metals could offer you a good return over time.