Financial investments aren’t restricted to buying securities in the stock market. You can also invest in gold, silver, and platinum. They’re some of the most ancient forms of investment one can make. Here’s a guide on what you need to know about precious metals, brought to you by the pros from First National Bullion. Scottsdale investors should consider the following information before investing in precious metals.
Available Types of Precious Metals
Precious metals aren’t easy to find—hence the term “precious.” Gold and silver are used in the jewelry industry and various industrial processes. Below are the common types of precious metals you can invest in as a beginner:
- Gold – This metal is valuable in the jewelry industry and as a component of various forms of industrial production. Many love it because of its unique features—durability, flexibility, and conductivity. Gold has been used for many years as a form of currency and in jewelry creation. It’s also common to find it being used in dentistry and electronics.
- Silver – It’s more available than gold and also has more features, giving it more industrial uses than gold. Many new investors in precious metals go for silver because it’s more available, and its price fluctuates less than that of gold. Silver is used in making jewelry, medical devices, electrical appliances, circuits, batteries, etc.
- Platinum – This one is scarcer than gold. Besides being used in making ornaments, it’s also used to make automotive catalytic converters and computer accessories and to refine chemicals.
- Other metals with substantial industrial uses include palladium, copper, magnesium, and zinc. These are typically used for commercial purposes.
Ways to Invest in Precious Metals
All investors should have goals for their investment plans. Spread your investment portfolio to other ventures regardless of your investment goals. Here are a few ways to invest in precious metals:
- Exchange-Traded Funds (ETFs) – As a new investor in metals, you need security for the investment you’ll make. With ETFs, an investor is set to benefit as metals are being bought.
- Physical metals – You can also buy physical metals and store them. This is for those who want to accrue wealth gradually for several years.
- Precious metals IRAs – Here, your precious metals are stored in a bank vault as you earn from them. You need not worry about how you’ll store them.
Benefits of Investing in Precious Metals
Some of the advantages of investing in precious metals include:
- The value of precious metals doesn’t diminish like other forms of money
- The value of precious metals can never be inflated, so political events and inflation rates should be the least of your worries
- You can keep metals in your possession, unlike security shares
What to Avoid When Investing in Precious Metals
When investing in precious metals, here are a few things you should make sure to avoid:
- Don’t invest for short-term goals. Precious metals investment isn’t a way to make quick cash but a long-term investment.
- Don’t invest too much in precious metals. They have a good long-term return on investment. However, as a beginner, don’t put all your money into them. Invest bit by bit as you watch the market’s behavior.
- Don’t invest without adequate research. Read about precious metals, and study the market.
If you’re building an investment portfolio and looking for the best place to purchase Scottsdale silver bars, gold coins, and other forms of precious metals, reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you find all the information you need on how precious metals can be great investments. Give one of our experienced dealers a call today at 480-546-8928.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.