The Ultimate Precious Metal Investment Guide (2024)

The Ultimate Precious Metal Investment Guide (2024)


Precious metals make a great investment. They are one of humanity’s most prized commodities, and the prices of gold and silver are a lot less volatile than the stock market. How do you get started in gold? Here is a golden guide to help you out.

preciouse metal

Some Things Will Always Be Precious

Metals like gold and silver have been highly valued for millennia. The trade of these and other precious materials have defined entire eras of humanity, like the Bronze Age.

Precious metals consistently grow in value over time, which makes them a suitable way to diversify your long-term investments with reduced risks.

Many people plan for retirement using gold and silver, investing a portion of their savings into these precious metals in particular as they are widely traded and are a physical investment that you can hold yourself.

There are some differences between the two metals that could affect your investment strategy. This comparison of investing in gold or silver from Physical Gold, the UK’s top gold bullion supplier, covers all the bases between the two commodities.

Gold is a more stable investment that provides slow but steady growth over time. In contrast, silver prices are a little more volatile and create opportunities for profit from speculation and added risk.

It is also worth remembering that precious metal prices often spike during economic uncertainty and stock market problems. Having an investment in precious metals gives you an opportunity to profit in these circumstances, as well as protection from them.

A Precious Piece Of The Puzzle

Every investment portfolio should be diversified. Whatever investment strategy you have or how much you plan on investing, precious metals like gold should form a small portion of the overall portfolio. A sensible amount is between five and fifteen percent of your total investment value. Investing in gold also protects from fluctuations in both currency and stock markets.

Gold is generally seen as a lower-risk investment that provides longer-term returns, and is considered a safer place to store wealth as it typically holds its value over long periods of time.

Though it should only be one part of a more extensive, diverse portfolio, it is a crucial piece of the investment puzzle. Buying physical gold allows investors to balance the risks of other investments and stock market volatility and hold a physical asset stored at home, at a bank, or with a bullion supplier.  

Physical Vs Futures

Physical metal investments involve bars, coins, or ingots that you can store yourself or have stored for you. As the price per gram increases, so does the value of your physical asset, and you can sell it at the current market price to realize your profit.

It is possible to also invest in precious metal mining companies to invest in gold or silver. Still, the value of this asset will be affected by more variables than the current price of precious metals.

Financial products like Exchange Traded Funds (ETFs) will include gold as a part of the investment, but precious metals do not comprise the whole investment and expose you to additional risks.

Contracts for Difference are agreements between traders and brokers to exchange the difference in the price of a precious metal asset without owning the physical metal. These may sound tempting, but they are a less regulated market, and many are offered by unlicensed brokers, adding another layer of risk.

How to Get a Pot of Gold

Investing in precious metals is easy. Buying physical assets like coins, bars, and jewellery is often preferable to owning shares or options in gold companies or Exchange Traded Funds (ETFs).

This gives you something to have and to hold rather than an investment that exists only on paper, and typically physical precious metal assets perform better over time than futures, options, or Contracts for Difference (CFDs). Before you begin investing, make sure you check all your options to find the best investment product for you. 

The best place to buy gold or silver bars, coins, or ingots is from an accredited bullion supplier with a strong record of secure sales. Not only will you get a better price from them, but they will also be able to hold your gold in storage if you prefer. You can get your gold in your hands at any time, but it can be advantageous to have your precious metals held with a trader so you can make a sale quickly if you decide to cash in on your investment. 

Gold and silver are the two most popular precious metals for investment. It is easy to understand why, as a physical asset is much more reassuring than one that only exists on paper. If you want to diversify your investments, make sure precious metals like gold form a part of your portfolio.

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