Investing in Precious Metals – A Quick Intro

569593-gold-1372416325-220-640x480Although bullion sellers the world over offer services to investors seeking to put their funds in gold cafes, some significant banks acquire them over the counter.

Hard Economic Times

After the most recent economic drop-offs in recent years, many are (rightfully so) feeling uncertain about their financial future. Even with the crawl back to solid ground, many are uneasy about their investments and what that means for unemployment or retirement.

Of course, there is no guarantee that the economy will continue to move in a positive direction, and with the recent recession, more are looking for different ways to secure their financial future.

A Popular Strategy

One of the more popular ways to invest in the face of economic uncertainty is by investing in precious metals, like gold, silver, platinum, and palladium. In the past few years, the prices of each of these metals, as well as worldwide demand, have increased. Aside from their value in jewelry and coins, these metals have a wide range of practical uses in industry that make them very popular.

dreamstime_18240882Gold is consistently the most popular of the precious metals to invest in. In the past two decades, gold investors have seen about a 7% return on their investment. However, this average does not indicate consistency.

Peak numbers in the 80’s, 90’s, and 2000’s have accounted for a higher average, though the ROI has dropped to negative numbers at points.

In the last few years, the prices to buy gold and platinum hit an all-time high (not accounting for inflation rates).

Both palladium and silver have come close. As the federal government inflated the money supply to get the country through the recession, the cost of these metals increased.

Read these Gold IRA Reviews because they are one way to diversify one’s portfolio even in an uncertain climate. In times of economic turmoil, it is beneficial to have an expansive portfolio. If you do decide to do this, make sure you choose legit gold ira companies. There are many reputable gold ira organizations like Regal Assets

Purchasing gold bullions or platinum jewelry, it is extremely important to have a safe place to store them. There are ways to invest in these precious metals outside of purchasing antique coins and bullions, like investing in stocks and mutual funds that have shares mining companies, or in Exchange Traded Funds that hold bullions.

Do the research before investing of course. As with any stocks or mutual funds, a high return in never a guarantee. Right now, precious metals are performing well, but it can be a volatile market. Experts recommend putting no more than 10% of the total portfolio into metals. Again, having a diversified portfolio is the best way to ride out a recession.

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