Top 4 Precious Metal Investment Risks to Consider
Silver and gold investment is a more stable option than trading stocks. If not gold, you can conveniently invest in palladium or platinum, which are more stable than gold and offer high liquidity.
All precious metals have been tested repeatedly against market distress and economic failures. The assets offer long-term investment opportunities with satisfactory profit months and years later.
Storing precious metals has now become easier! At Orion Metal Exchange, you can store, liquidate and invest in silver coins and other precious metal products at flexible pricing options.
Here are some precious metal investment risks to consider.
1. Exchange Rate and Currency Affect
Since the dollar is the most stable currency in international markets, bullion trading should be done in dollars. The moment you lead the exchange in another currency, ensure you tally the prices against dollar prices in international markets. The depreciation and appreciation of the dollar can have a positive or negative effect on metal exchange.
2. Tax Risks
The Internal Revenue Service has set standards for taxing tangible assets like precious metals. Be careful about which precious metal you are investing in. Different precious metals have different regulations for investment and storage. The IRS considers gold, silver, and platinum bullions as ETFs; exchange-rated collectibles. If these collectibles are sold after a year, the long-term capital gains tax would be applied, around 28% in recent years.
3. Liquidity Risks
Finding buyers for your assets may take time. With time, the price of precious metals may fluctuate. This levies liquidity risks and the cost of waiting on metals such as silver, whose prices are said to fluctuate very often. Selling non-paper assets like bullions can take even more time in the open market. It may not be legal everywhere.
A good way to assuage liquidity risks is to go for online storage accounts that facilitate the online exchange of precious metals. Count on secure silver and gold storage investments by the Orion Metal Exchange team.
4. Storage Risk
Purchasing tangible assets comes with the threat of robbery and theft. Storing your investment in bank vaults can also be risky at times. However, you can opt for insurance on precious metals. You can also opt for an IRS-approved third party to store your valuables.
Reduce liquidity and storage risks with top gold IRA companies that store gold in your Individual Retirement Account as a solid investment. Orion Metal Exchange offers gold IRAs with the same tax deferment benefits as any other IRA. Our service also offers recommendations for investing in gold coins and storing them in secure vaults. To invest in gold today, contact us at 1-800-559-0088.