Did you know that almost all of the earth’s gold came from meteorites that collided with the planet hundreds of millions of years after it was formed?
Cultures across the world have coveted minerals such as gold and silver for many thousands of years. People value precious metals because they are scarce. Therefore, it is possible to make a lot of money by investing in them.
But it can be challenging to know how to get started with investing in precious metals. To help you out, we have written a guide. Keep reading if you are interested in finding out more.
Decide Which Precious Metals to Invest In
Gold is one of the most well-known precious metals. Some people choose to buy gold bars, and others prefer investing in gold coins. It is also common for investors to buy gold from gold-focused exchange-traded funds (ETFs).
Silver is the world’s second most plentiful precious metal. Many companies use it for manufacturing things like electronic components and solar panels.
If you want to get started with investing in silver, keep in mind that its price is highly volatile.
Platinum is one of several platinum-group metals (PGM) such as ruthenium, osmium, rhodium, and palladium. It is common for people to make jewelry out of platinum, and it is also an important industrial metal.
Precious Metal Investing: Pros and Cons
If you are looking for a material to invest in that can act as a hedge against inflation, you should consider investing in precious metals. They are also assets that you can turn into jewelry and use for industrial purposes.
It is also a great idea to invest in precious metals if you are looking to diversify your portfolio.
The biggest disadvantage of investing in precious metals is that you might need to pay to insure and store them. You will also need to worry about them getting stolen.
You should also keep in mind that the IRS will tax precious metals as collectibles if you choose to sell them.
How to Get Started with Precious Metal Investing
There are two ways to start investing in precious metals. It is possible to purchase physical jewelry and bars.
You can also purchase precious metal-based investment products such as exchange-traded funds.
The easiest way to invest in precious metals is through the stock market. There are various companies that specialize in the precious metals trade.
These companies include Franco-Nevada and Wheaton Precious Metals. Make sure to do plenty of research before choosing a company to invest in.
Investing in Precious Metals: Get Started Today
If you are interested in investing in precious metals, you will first need to decide which metals to invest in. It is also a good idea to familiarize yourself with the pros and cons of precious metal investing.
If you’d like to find out more about investing, don’t hesitate to check out the Business and Trade section of our website.