Everything you need to know about Precious Metals Investing

When people hear of precious metals, gold and silver rings in their minds. Precious metals are, however, not confined to the two metallic elements. A high-priced metal is a rarely occurring element with a very high economic value. In most cases, valuable metals are used in the jewelry industry and for investment purposes. For decades, people have always used these metals as a way to keep their wealth safe. If you are interested in investing in such metals, there is a lot you should know before getting into the trade. It can be very tricky initially, but after this read, you will have an idea of where to begin.

 What are the most common metals to invest in?


There are four most common metals used for investment. They include:

  • Gold: Gold is known by many and is easily identified due to its color. Apart from making jewelry, gold is used for radiation shielding and insulation.
  • Silver: Silver is known most for beauty purposes. Silver is used in manufacturing electronics, batteries, and coins with high thermal and electrical conductivity.
  • Platinum: This is the rarest of all the rare metals. It is used by dentists and in the weapon manufacturing industries.
  • Palladium: Although we cannot compare palladium’s value to that of gold, palladium is a rare metal is used in electroplating.

There are other valuable metals whose economic value is not as high as those listed above. These metals include:

  • Copper is used in the manufacturing of currency in most countries.
  • Osmium which is used in making alloys
  • Iridium is used to manufacture jewelry, electronic devices, and medicine.
  • Rhodium is used majorly in the manufacture of automobiles.

Methods of Investing in Precious Metals:

There are several ways that investors use to hold the asset value. Remember, there is a need to protect precious metals from inflation and other economic crisis.

  1. Mutual funds or ETFs

Mutual funds are actively managed programs that help investors buy or sell an asset, hoping to profit.

On the other hand, ETFs do not have a management plan and can therefore be traded like stocks.

  1. Bullions or coins

If you are interested in investing in high-priced metals, you can go for the bullions. Bullions are coins that are made of precious metals. You can later sell them at a price higher than the buying price to get profit. Go to this page for more information.

  1. IRAs

An individual retirement account allows you to keep precious physical metals to use or resell at a later date. It is a form of investment used by people who want to secure their retirement days by keeping their asset values in metals.

  1. Certificates

At times you don’t want to go through a hard time transporting the precious metals to your place or the bank. What happens is that you buy the metal, and you are awarded a certificate for showing that you own a certain amount of the metals.

 Why should I invest in precious metals?

The number one reason you should invest in precious metals is that they are rare to find, and hence their demand is high. As the demand keeps increasing, the value of the metals increase. The second reason is that the highly-priced metals are liquid. You exchange them for money anytime you need to. The other reason is that putting your wealth in valuable metal investment helps diversify your investment portfolio. People who trade currencies are prone to suffering huge losses when the financial market is very volatile. Instead of risking your wealth in real estate or currency exchange, why not invest in valuable metals?

 Tips on precious metal investments:

  1. Always go for the high-priced physical metals. Unlike the digital and paper precious metals, they give you security for your wealth since they have direct ownership- the more expensive ones are usually more pure. Just make sure you’re investing with a reputable company like 7k Metals.
  2. Don’t buy precious metals that are not allocated.
  3. You should buy bullions or coins if you know that you have been investing for a long time. If you are buying the rare metals for a few years, it might not be profitable since there are management fees that you will need to pay.
  4. Ensure that you have safe and trusted places to store the rare metals.
  5. Be keen to know all the costs you will have to face as you buy the high-priced metal.
  6. What is the settlement period if you want to sell your precious metals?
  7. Never buy precious metals from unknown sources. You must consider buying bullions that have good delivery.

 Bottom line 

If you have ever wanted to venture into the valuable metal investment, you have all the reasons to. Security from inflammation is the number one advantage. However, every trade comes with its set of limitations. In this case, the price of metals can reduce due to more sellers and fewer buyers. Sellers will benefit more than the buyers in such a scenario. Therefore, you must study the trend of the market before investing.