Investors who are searching for ways to hedge their wealth against the devaluation from the economic forces would do great to consider the available precious metals to them. There are actually 4 metals traded on the markets in the world and these include silver, gold, platinum, and palladium. Out of the four, the most commonly used and easiest options are silver and gold. If you’re new to the industry of precious metals investing, there are some things that you should know before you start purchasing silver and gold or even platinum or palladium.
Once you start purchasing silver and gold, the majority of experts recommend beginning small. You must only add between five to ten percent of your portfolio in precious metals. This enables you to test the water so to speak. Investing in precious metals is a good way of safeguarding your wealth, yet it isn’t for all investors. It is a long-term strategy that provides slow growth with a focus on protection. It isn’t the stock market with overnight wealth generation. If you like to get rich as fast as possible, precious metals aren’t a good option for you. Nevertheless, if you wish to add protection as well as diversification to your portfolio, purchasing silver and gold can be a good option.
Be Aware of Your Options
Once you think of buying silver and gold, chances are great that you imagine a big bank vault stocked with huge bars of metal. That is the way the industry of precious metals has been depicted in the movies, yet it is just that, it’s fiction. Buying silver and gold does not mean you have to purchase a large bar of metal. Basically, there are some options you can take for consideration.
Silver and gold may be purchased in various forms including these:
Bullion – it’s a blanket term that’s used to describe bars of different sizes and rounds. Coins may range from small all the way up to an ounce of metal. Bars range from a fraction of one ounce to hundreds of ounces.
Coins – Silver and gold are available in both investor and collector formats. For example, Morgan silver dollar is the coin of the silver collector, valued for both its silver content and rarity. American Eagle silver coins, on contrary, are valued primarily for its silver content instead of any rarity.
If you are considering buying silver and gold coins, think hard and long about the options you want to buy. It might be appealing to buy the coins of the collectors because of the dual value. Nevertheless, it’s not always a wise move for investors who are just starting in the industry. It may be hard to determine the collectible value of a silver or gold coin that makes it hard to calculate the ROI. For those who are starting out, it might be a wise idea to stick with the bullion coins that have no or little real collectible value.