Everything you needed to know about investing in precious metals / Commodities / Gold & Silver 2020

Gold. Silver. Platinum. Palladium. Precious metals mined from the bowels of the earth, refined andvalued for their unique characteristics.

Since the beginning of civilization itself,humanity has long held an obsession with what is known colloquially as “bling.” Nowadays rather than adorning ourselves with beads and seashells,we’ve turned to precious metal.

If one thing’s for certain, it’s that investorshave always turned to precious metals in times of economic uncertainty. Whetherit’s their tangible presence as hard assets or long history as a safe haven,precious metals are a great investment.

However, investing in precious metals isn’t justabout snapping up bars of gold or silver easily. You have to check the futuresilver price predictions on Currency.com, to make sure your investment is well timed. There’s plenty ofresearch you’ll need to do before making it big.

Fortunately, we’re here to help and we’ve puttogether a comprehensive guide that shows you everything you wanted to knowabout investing in precious metals.

1. Do your homework first

Just like any other investment, you’ll need todo your own research before jumping in with both feet. While it sounds simpleenough, investing in precious metals such as gold and silver isn’t as easy asit sounds.

You’ll have to contend with global pricefluctuations and shifting demand. While precious metals are indeed a safe haveninvestment, this doesn’t exempt them from becoming a loss-making investment.

All too often, amateur investors are drawn in bythe perception that gold is a foolproof investment that guarantees returns.Rather than falling into that trap, do your own market research by studyingtrends and global economic conditions. 

For example, it is a widely known fact thatduring times of economic turmoil, investors often short the US dollar in favorof gold-based assets. Hence a fall in the USD usually signifies a rise in theprice of precious metals.

Also, always conduct business with a reputabledealer as there are plenty of unscrupulous brokers looking to sell youworthless or overpriced assets.


2. Know what precious metals are on the market

Typically, when one thinks of precious metals,it’s easy to assume that gold is the only type of metal worth investing in. Onthe contrary there are plenty of different precious metals to choosefrom. 

From platinum and silver to palladium, dealersusually have a variety of metals in their inventory that come in the form ofeither coins or bars. Given the high prices usually commanded by gold bullion,you may even opt for something more affordable such as silver or platinum.

Often overshadowed by gold, platinumis one of the most commonly used metals in the world and has been found in industries as diverse asweapons manufacturing and dentistry. 

Don't buy into the hype that gold is the onlyprecious metal worth investing in, with so many alternatives available, there'sno harm starting small.

3. Learn how to invest in precious metals

Now that you’ve learnt how to recognize thevariety of precious metals available, it’s now time to actually get investing.

The simplest and most straightforward way tobuild your portfolio is through actually buying said precious metals. You canchoose between purchasing jewelry or investment-grade bullion such as coins orbars.

Jewelry is able to serve as both a decorativeitem and an investment. Alongside this, jewelry made from precious metals areusually more affordable than bullion. Unfortunately, jewelry may not be aswidely accepted as bullion which can make liquidation tricky.

Besides investment-grade bullion and jewelry,you could also opt for purchasing shares in companies that mine preciousmetals. While you won’t be able to purchase any precious metals physically,shares are significantly more liquid and stand a better chance of appreciatingin value.

However, as is commonplace on the share market,there is an element of risk involved when purchasing shares which means thatyou’ll need to be extra careful.

So, there we have it, a list of everythingyou’ll need to know about investing in precious metals. Given the uncertaintyof the near future, precious metals are sure to be a great investment.

By Sumeet Manhas

© 2020 Copyright Sumeet Manhas - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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