Types of Precious Metals Investing

Precious metals investing should be considered to make up a portion of your portfolio as an investor. If you would like to get involved in precious metals investing, there are a number of different avenues that you could choose to pursue. Here are a few of the different types of precious metals investing.

Tangible Assets

The most direct way for you to invest in precious metals is to purchase tangible assets. This is going to involve purchasing actual pieces of the precious metals and taking possession of them. For example, you can buy actual bars or coins of gold and hang onto them yourself. In order to do this, you are going to need to work with a precious metals dealer in most cases. You could also purchase them online through an online auction site such as eBay. The good thing about this approach is that you are going to have complete control over the assets that you own. The downside is that you are going to have to worry
about warehousing precious metals. This can be dangerous because you will always have to worry about someone trying to steal them.


Another option that you have when it comes to investing in precious metals is buying certificates. With this option, you are going to work with a dealer that provides a certificate that tells you that you own a certain amount of precious metals. With this method, you are going to not actually take physical ownership of the precious metals. Instead, you are going to simply get a certificate and the company is going to warehouse the precious metals for you. You will still be able to sell the amount of precious metals that you want or you can trade your certificate. The advantage of this method is that you are not going to have to worry about warehousing the precious metals yourself. The downside is that you will not actually know if the precious metals are being taken care of or that you actually own anything.


Another method that you can use to invest in precious metals is a futures contract. With a futures contract, you are essentially agreeing to purchase a certain amount of the precious metals at a date in the future. If the value of the precious metals increases before that date, you can sell your contract and make a profit. If you reach the date, you may have to take physical ownership of the precious metals that were guaranteed upon in the contract.


You could also potentially invest in stocks to take advantage of price increases in precious metals. For example, you could choose to invest in mining companies that mine precious metals. This will not allow you to directly speculate on the price of the precious metals. Therefore, this is going to be a more indirect method of investing in precious metals, but it will give you some exposure to them.

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