Top Questions a New Precious Metals Investor Should Ask
Should I Invest in Precious Metals?
It’s a common assumption among many investors that precious metals like gold, silver, platinum and palladium are generally considered to be a secure investment, one that withstands both better and lesser economies. Well, to be sure, no investment is without some level of risk but there are some built-in assurances as it comes to investing in precious metals.
To start with, precious metals are almost always in demand. For example, gold and silver are remarkably popular because of their prized properties. They are both very dense and excellent conductors of electricity. Platinum and palladium are also prized for their usage in manufacturing, specifically in the automotive industry which shows no signs of letting up.
Just a little bit of research will reveal how popular these precious metals are and how one might go about investing in them. And once that choice is made, other questions are likely to follow. So, let’s consider a few.
Should I Invest in Silver, Gold or Both?
Gold is a remarkably popular choice as it comes to investing in precious metals but don’t count silver out. Silver is currently primed to have its day in the limelight thanks to the booming solar panel industry which relies heavily on silver for its excellent conductivity. Over the next decade or so, silver is expected to shine.
So, it’s just a matter of research, considering for yourself which is the best fit for your investment portfolio. However, there should be some comfort in the fact that precious metals, including platinum and palladium generally make for reliable investments and in these volatile times, reliability is not only wanted but needed.
Should I Buy Bullion Bars or Coins?
Generally speaking, most investors tend to find bullion coins to be the better choice. This is mostly for the sake of the obvious popularity of collectible coins as an investment. As a result, they are easier to trade both online and at your local coin shop.
Bullion bars often sell at lower premiums than coins. Bullion bars are only recommended if it is your intent to purchase these precious metals in large quantities.
Do I Want Physical Bullion or Paper-backed Assets (ETFs)?
These days, ETFs, or Exchange Traded Funds are growing in popularity. With an ETF, you can immediately access the marketplace and buy/sell online, in real time. Your investment is contractually secured by the immediate value of the precious metal of your choice. It’s a convenient choice that allows for some more tech-savvy options.
This being said, few things are more satisfying than holding your collectible coin or bullion, storing it, having it nearby. Physical bullion is all about tangibility and security as it comes to personally cherishing and protecting your investment.
And then, of course, there’s the option of trying both. Perhaps you like the idea of investing in an actual gold collectible coin while buying and trading palladium as a precious metals ETF. To the point, it’s a good time to dive into the precious metals market because these metals have never been in more demand and your choices are not as limited as they once were.
You’re on the right path by researching the top questions a new precious metals investor should ask. However you answer any of these questions, an investment in precious metals has never been easier or more recommended. But do your research. Make sure that your answers here are in accordance to your tastes and interests, to what makes you feel comfortable as it comes to investing in precious metals.
About The Author
Jake HaugenFollow @herobullion
Hero Bullion provides an environment that is informative and safe for those looking to own physical gold and silver bullion as an investment. We love helping folks at all stages throughout their bullion journey making progress towards acheiving their financial goals. Whether you are a seasoned bullion investor or brand new to the game of gold and silver bullion ownership, we're here to help and serve you in any way we can.