Precious Metals: 5 Things You Should Know Before Investing

What would you say is the oldest investment known to mankind? If your answer is anything other than land and gold, you’re in for a surprise! Since the middle ages, mankind has possessed gold, silver, and platinum, and has found these glittering precious metals to be of extreme value during financial turmoil. However, a lot has changed about precious metal investments. Nowadays, you do not necessarily need to own the precious metal; you can also invest in equities of mining companies or stocks of metal traders.

Thus, to help you make the most of your investment, we are going to tell you five things you need to know before you invest in precious metals.

Choose your precious metal:

It is a known fact that gold is the most cherished precious metal. Platinum is the rarest, and thus, it also reaps good benefits. Silver is the most commonly found among the three, and is, thus, the most turbulent of them all and is usually evaluated on the lower side. This doesn’t mean that silver investments do not reap any benefits at all. Silver is also a good investment; however, gold is the most stable of them all. So, it isn’t really about how much you invest, but it is more about what you invest in!

The purity of the metal:

An alloy would not give you the same returns a pure metal would. Even in pure metals, you could find some of the other alterations with copper or zinc to make the metal useful for amalgamation, moulding and jewellery making purposes. 24-carat gold pieces would not be valued at the same price as a 22-carat gold piece. Focus more on the purity of the metal that you buy.

You can also ask for the right certifications and written guarantees on the metal you have just been traded. These would later be used to prove and get the right worth for your metal. Only a written certificate can later be used to hold your buyer and seller accountable. It certifies if the metal is actually worth the pure sample that they claim it is.

Where?:

There are a lot of scammers in the market who would tell you how pure the metal is, but later you would find out an inferior quality gold or silver has duped you. They would also tell you that they are selling the exact amount you asked for, but it is so easy to remove grams from your gold bullion or silver coin. Just a few grams off that piece and you have been robbed off a thousand dollars! For this reason, we would highly suggest that you only choose a trusted buyer and seller, visit website!

Timing:

Although precious metal investments are always handy, to make the most of them, you want to buy precious metals when they are cheap. Rest assured, gold, silver, and platinum would always be in demand. So, never feel discouraged by a downward trajectory on the graph, that is an opportunity for you to stock up on these metals and later sell them when the graph picks up.

How?:

Depending upon the storage options you have available at your home, you could choose to buy the metal in its physical state, or you could go for a gold certificate, paper gold, paper silver or ETFs. Nowadays, there are various ways of investing in precious metals, but you should know that during the times of a crisis, it is the physical metal that weighs the most.

We hope this article has been a helpful guide on precious metals.

 

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