Beginner’s Guide To Investing In Precious Metals

| April 30, 2015 | 0 Comments



If you are looking to start to invest in precious metals for the very first time, then you should not take the process lightly. There are many things to think about which could make or break your purchase. The entire field of precious metals can be full of intimidating terminology and smooth-talking traders. But; worry not. We have all the basics covered for you here. Here’s our essential guide to buying and investing in precious metals.


Make yourself aware of the risks

Any investment you make is a risk. It’s important to realise that wherever you put your money, whether that be in property, possessions, or even services, you could always lose out. When you are inexperienced in metals trading, this is especially important. Although many metals are regarded as valuable, that doesn’t mean you will make any money from them. And, in a worst case scenario, you could lose money due to fluctuating prices. Any investment you make should be with money you can afford to lose – it’s one of the major rules of investment.


Cash purchases

When you buy silver, for example, one of your options is to pay for it with cash. Cash purchases – also known as direct purchases – are when you hand over physical money and buy coins or bars. They can either be sent to you or, if you are there in person, taken straight home. Your best bet here is to find a precious metals broker that can help point you in the right direction.


IRA purchases

Now let’s imagine that you want to invest in gold. A gold IRA works slightly differently in that you use money from a retirement account, and the gold is kept in a depository. You may not even get to see it, but if you want to take it home with you, the IRS will consider it as a withdrawal from your pension. So, you will be taxed. Because they are a bit more complicated, you should think about getting a professional involved. To see what’s on offer, head over to the Gold IRA Handbook website where they have a list of the top rated gold ira companies.


Understand the length of investment

You aren’t going to make money quickly with precious metals unless you are incredibly informed, or lucky. Most people buy metals with a view to holding them for a minimum of five to ten years. The reason is simple. Although they are known as valuable metals, their cost fluctuates a great deal in the short term but has steady growth in the long term. It’s just a way to look after your money in the long term.

We hope you have got a lot out of this article. Investing in anything is a risk, but the difference between knowing where to put your money and having a wild guess is huge. Precious metals are an excellent long-term investment that, at worst, will protect your money. However, it is important to seek proper financial advice before investing any money in them – especially if you are looking for a short-term exit.


Category: Investment

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