Last Updated on Nov 12, 2020 by James W
You have likely heard that precious metals offer promising prospects with a greater rate of returns in the long run. The historical price of gold and silver today bear testimony to this fact. So, does this mean you are missing out on a potential opportunity for greater wealth creation by not investing in them?
You might be if precious metals are not in your investment portfolio. The good news is that you may get started whenever you want. Several online platforms, such as Gold Stackers, give you the chance to safely invest in precious metals. But before you take a plunge, here’s how you can choose the best metals for your investment portfolio:
- Types of Precious Metals
If you are new to precious metals, do your research and know the types and their distinct advantages:
- Gold – The grand-daddy of precious metals, it is one of the valuable investment instrument that is considered to be a safe investment hedge against inflation and economic crisis
- Silver – Yet another precious metal that is used widely in several industries and more affordable than gold
- Platinum – It is used in medical equipment, computers, and many automotive parts and comes at a relatively higher price
- Best Forms of Investment
You can invest in precious metals by purchasing physical metal through online sellers like Gold Stackers or various financial products such as gold exchange-traded funds or commodity trading. Each method has its advantages and disadvantages.
While investing in precious-metal-based funds may seem convenient, you actually don’t own the metal, and you have no claim on it. In contrast, buying it in its physical form reduces counterparty risk, and you can store it and use or sell it quickly if the need arises.
- Gold vs. Silver
These are two common precious metals that are generally considered by investors. Gold has a more liquid market and is relatively less volatile than silver. On the other hand, silver is cheaper and accessible to all investors, small or large. It is more speculative and has a strong relationship with the state of the economy. Hence, silver can be attractive to buy when the price is down.
- Bullion Bars vs. Coins
Investors can choose precious metals in the physical form of gold, silver, and platinum in the form of bullion coins or bullion bars. Bullion coins such as mint coins and other sovereign coins come in limited edition and attractive designs of Australian Kangaroo, South African Kruge, etc. making it easier to trade and sell at higher premiums.
On the other hand, bullion bars in small to large quantities are best suited for institutional buyers and those looking to buy in large quantities.
- Consider the Best Place to Buy Physical Precious Metals
The best way to buy precious physical metals is through an online dealer such as Gold Stackers that offers a buy and store program with allocated vaults. Investors should always look for a reputable dealer that has high safety and quality standards.
With all of the global economy’s uncertainties, it’s vital to diversify your portfolio and add the benefits of precious metals to your investment strategy.
