4 Questions to Ask Yourself before Investing in Precious Metals
Investing in precious metals like gold, silver, platinum, and palladium is not as easy as it sounds. Novice investors often get confused when it comes to the types of investments, as well as how to go about them.
Precious metals’ long-term rise in value and risk-averse nature diversify an investor’s portfolio and also offer a hedge against volatile market conditions.
If you’re just getting started in precious metals, continue reading for four main questions you need to ask yourself before investing in them.
1. Do I Want To Invest In Physical or On-Paper Assets?
The first thing you should ask yourself is what kind and form of precious metals you would like on your investment portfolio. There are two ways to invest in precious metals:
Physical
Investing in bars, coins, or jewelry and physically supported ETFs count as an investment in physical precious metals.
The primary benefit of choosing this option is that it offers asset ownership — so it’s no one else’s liability. Owning precious physical metals allows one to participate in potential price appreciation and enjoy peace of mind.
On-Paper
Buying mining company stocks, ETFs, ETNs, gold or silver future options, or certificates are non-physical options that allow you to invest in precious metals. On-paper gold and silver are more liquid than physical gold, but investors are not entitled to any physical assets.
2. Is The Current Market Price Favoring My Budget?
Before investing, you should thoroughly evaluate and study precious metal market trends. Quantify the costs associated with owning, insuring, and storing precious metals after purchasing them.
3. How Much Will The Value Of My Investment Appreciate?
Every investor wants to benefit from a handsome ROI, whether they invest in real estate, precious metals, or stocks. In recent years, the US government has implemented several measures to combat a potential recession, which has increased the prices of precious metals. Therefore, there’s no doubt that precious metals are a great long-term investment.
4. How and Where Will I Store My Precious Metals?
Ensuring the safety of precious metals after making the purchase is undoubtedly important. Hence, it’s imperative to craft a storage plan for your investment.
There are usually three ways to store your metals; in private vault storage, in a locker at your bank, or in a third-party depository. The storage cost depends on whether your chosen option is segregated or allocated.
Let Us Help You Make The Big Decision
In light of the COVID-19 pandemic, investors can still make the most of the opportunity to invest in the precious metals market. Please read up on our comprehensive FAQs section, which will address your queries.
If you intend to invest in silver or gold bullion bars and coins online, get in touch with the experts at Orion Metal Exchange. Call us at 1-800-559-0088 for more information!
