Why You Should Invest In Precious Metals

Experienced investors have for long known that silver, gold, and platinum is a great investment choice. These precious metals are quite stable in times-of worldwide uncertainty, inflation, or when economy is bad. If used correctly, these precious-metals can be a highly effective component-of diversified investment portfolio, however, keep in mind, they’re an investment just like any other, & have that element of risk (albeit-more modest). Gold may be a part of an investment portfolio. There are some people who buy gold as hedge against inflation. Although the value-of gold goes both up & down, it does not follow same cycles as stock market. Gold coins, bullion and gold bars are highly liquid investments; you may easily sell these through a dealer, & unlike stocks & bonds, gold bars and bullion are a great investment you can actually see & feel, which basically heightens their appeal for most people.
Buying Online
You may buy gold online through a number of dealers. The online merchandisers usually offer a wide-selection of gold in various different sizes, thus making it much easier to find an item(s) that best fits your budget. They provide the convenience-of online ordering, toll free numbers & even free shipping. The reputable dealers provide secure transactions & insured shipping which has tracking. You might have to wait for several weeks for the gold to arrive when there’s high demand.

Coin Dealers
Many of the coin dealers usually handle collectible gold-coins and gold bullion-coins. Collectible gold coins might be circulated or can be uncirculated. They’ve value for both their gold content & for their history. The rare coins or the coins which have interesting histories might be worth much more than just their gold content. Bullion-coins can be sold primarily for only investment purposes. Value of the bullion coins is usually based on value of gold in the coins. Bullion coins are usually sold in weights-of one ounce, half an ounce and a quarter an ounce, thus making it much easier to determine the coin’s value by looking for the current selling-price of an ounce of gold. U.S Mint keeps a list-of dealers for the U.S bullion-coins. Whenever you buy coins from dealers, you pay value of the coins plus the dealer markup.

Protecting Yourself
Whether you’re buying your gold online and/or face to face, you need to check the reputation & history of the dealer. Research the dealer’s reputation with Better Business Bureau, & read online reviews-of his/her services. Purchasing from people online can be risky, since you’ve no way of actually knowing if that person/dealer is running-a-scam. It’s recommended you work with only the dealers who’ve been in the business for say, at least 10 whole years. You can ask for a certificate-of authenticity which states the purity & gold content of the purchase.

Storing Gold
You will need a theft proof, fire proof place for storing the gold. While the bank might seem secure, the banks do not insure contents of the safety deposit boxes. Fire proof safe at home is an alternative, however, if your house or home burns down or it happens that thieves break into your house, your home owner’s insurance probably will not cover the loss-of your gold, because most insurers and insurance companies limit the-amount you can actually recover to just a few 100 dollars. One other alternative is putting your gold in to a pool-at the storage facility which is managed by a gold dealer. Your gold dealer stores your gold and provides you with an official certificate that shows what you own & insures the purchase for you.

 

Why Gold is the safest investment in uncertain times
-Gold has real world uses, like its commonly used in many of the sophisticated electronic devices like computers, cell phones, & global positioning devices.
-Gold is a safe-guard against irresponsible governments.
-Gold can’t be manufactured.
-Gold has that intrinsic value.

Instructions on How To Buy/Invest In Gold
-Be familiar with 5 principal ways of investing in gold & precious metals, that is, tangible coins & bars, certificates, precious-metals mutual-funds, stocks in mining companies, & gold & metals futures.
-Go with bars and coins if you are interested mainly in safety & diversity.
-Break down the tangible precious-metals in to its’ subcategories: bullion & numismatics. Gold bullion (and/or bars) is basically pure gold. The numismatics are minted-coins, which usually commemorate special occasions.
-Search for both the online and the brick and mortar precious metal dealers. Look up how long that dealer(s) has been in the business, and whether he/she specializes in 1 segment of that market, & who the typical-client is.
-Shop around. The mark-up on coins & bars will vary. A popular choice for the coins is 1 troy-ounce size as they’re easy to sell, buy and store.
-Educate yourself about numismatics market. Both the design and the condition of the coins can affect the price as-much-as the precious metal’s content itself.
-Choose certificates in case you’d rather not-store anything. The certificate represents the ownership of a certain-quantity of specific precious metals.
-Consider stocks & funds for additional options. Precious metals funds, since they’re diversified & managed, they’re the most stable. The stocks are much less stable, since you are buying in to only 1 company.
-For a much higher risk or a higher potential return-alternative, you can consider the precious metals futures in case you feel fully confident of your very own ability to actually predict whether value of the metals will decline or increase. Futures are basically a contract to sell or buy metals at a certain price and at a specific-point in time. Usually, doing well with futures depends solely-on what will happen to the value-of the metals during that contract term.
-The only drawback to the precious-metals is that they usually increase in their value only when price per an ounce goes up. By-contrast, stocks & bonds may pay dividends & offer some other income sources. In case conditions for the gold are poor, the stash may sit for a while doing virtually nothing.

Tips
-Because of the volatility, the precious metals should represent-only a small or little portion of your own portfolio-, that is, 10 % at the very most.
-Most conservative way of going in to precious-metals is through a mutual fund. It is professionally managed, it is diversified & is particularly well suited to the new investors.