Some people believe that this is the perfect time to buy gold, silver and other precious metals. The precious metals outlook for the long-term appears to be pretty positive, but currently some of the prices are close to six or 12-month lows. That adds up to opportunity, as anytime one can buy low when prices are expected to rise long-term, they should try to take advantage.
New investors have a hard time figuring out how to take the precious metals outlook and turn it into an actionable plan to invest in precious metals, as they have a hard time figuring out how to do that. There are a number of ways to invest in precious metals, each with their pros and cons.
Buy Gold, Silver, Platinum or Palladium Bullion
For those who are newcomers, bullion is literally a bar of a precious metal. This makes it the most straightforward means of investing in precious metals, in theory. One can simply weigh the bar, multiply the price per ounce times the weight and add in any fees and they will know the value of the bullion.
Unfortunately, that value is in the tens or hundreds of thousands based on the size of most bullion bars available, making it an unrealistic investment for the vast majority of people.
Exchange-traded funds are an electronic way for investors to buy into gold, silver, platinum or palladium if they like the precious metals outlook. While they do not have as much control over the investment and must trust the fund to maintain the proper amount of the precious metal on hand in order to keep the value of the fund, they are also significantly easier to purchase.
One can buy or sell exchange-traded funds just like a stock, which means that the process can be as easy as pushing a button on the computer. It doesn’t get much easier than that for a new investor.
For those who want to do a little bit more research and try to get a leg up on the competition, there is the option of bringing another variable into the equation by investing in a related stock. For example, one could buy into a particular mining company in order to gain some exposure to whatever precious metals they are mining.
The variable is that they must ensure that the company itself has sound financials, as its stock price will not simply rise or fall based on the precious metal prices, though they will play a part.
Coins and the Precious Metals Outlook
One of the easier ways to invest in precious metals is to purchase coins as an investment. There are a variety of ways to invest even within this category, as there are coins that hold no value beyond their weight and those that have historical value due to their age and rarity.
As a result, an investor can tailor his or her approach based on the amount of research desired and the types of coins they would like to purchase. This option also gives the investor the ability to maintain physical ownership of the precious metal, which means they’ll need to secure it. Of course, that’s easier with coins than bullion.
With so many options, there are plenty of ways to take advantage of a strong precious metals outlook and invest accordingly, so anyone with an interest can do the appropriate research and jump in. There are also additional, particularly complex investment tools surrounding precious metals, so don’t be afraid to do additional studying to attempt to move to an advanced level.