What tips and tricks can those who are new to investing benefit from?
Gold is generally the most popular precious metal people and it can be bought in several different forms including gold bars, bullion, and coins. But whilst it is the most popular choice for investment, it is also the most volatile in terms of price, so it might not be the ideal choice for beginners to start off with.
Silver is another precious metal you can invest in. Because silver has many important applications in industry, it is rapidly becoming a popular investment choice and with the price of silver rising all the time, it is a good choice for beginners looking to add precious metals to their investment portfolio.
Platinum is another good choice for investment purposes, although it is much more expensive than gold and silver. However, like silver, it has a number of important uses, including dentistry, laboratory equipment, as well as jewelery, which means it is always in demand.
It is a good idea to spend time researching the different precious metals before you make a decision on which one you want to concentrate on and there are several ways in which you can invest in precious metals. You can buy the metal bullion, to be stored by you or kept in a secure location, or you can buy shares and stocks in the companies that mine or trade in the metal. The other alternative is to invest in the precious metals futures market, but this is a riskier strategy.
If you decide to invest in precious metal bars or coins, spend time learning more about the differences in purity and weight as these factors will affect the resale value of your metal bars and coins. Imperfections, overall condition and design of precious metal bars and coins makes a big difference to the buying and selling price, so it is very important that you know what you are dealing with.
Never go through all of your money into precious metals as their prices can fluctuate a great deal. Most experts recommend that precious metals should only account for 10% of an investment portfolio. However, they are amongst the safest things you can invest in as precious metals never lose their value in the event of economic turmoil, unlike stocks and shares.
Never make the mistake of thinking that precious metal jewelery is an investment in the same way metal bars and coins are. It is not.
Jewelery is sold for a much higher price than the precious metal it is made from.
Once you are ready to invest in precious metals, traders, brokers and dealers can offer advice and help you make the right choices.