Have you given much thought to precious metals investing lately? If you’ve been following the saga of metals as an investment, then you know the last few years have been quite interesting. For those who don’t know, it doesn’t take too long to catch up. Metals such as gold and silver started to see a fast rise in value starting around 2008. Of course, this coincided with the economic crashes all around the world. People know that metals are actual tangible commodities, and they know that metals can retain wealth, and even rise in value, during uncertain economic times. Thus, precious metals investing became popular very quickly when the economies failed.
This sent the prices soaring in subsequent years. People who had invested heavily early were making a nice return. Gold and silver hit records and it seemed as though metals were a sure winner. People liked the metals because they were going up in value, and some investors never looked beyond this at the other benefits precious metals investing could confer to their portfolio. In early 2013, those investors received a bit of a shock.
What Goes Up Must Come Down
When the economy started to do better, the price of metals dropped. They dropped sharply at first, but then they began to taper off. They actually seem stable right now. Still, the drop was something many investors simply did not expect. This was a bit of a shock to some. However, those who had been precious metals investing longer knew that this would happen.
Even though the trend for metals is to rise, sharp increases will generally have a sharp decrease that followed later. That’s why the wise investors always look at metals as a way to keep their wealth safe over the long-term. They can sell when the prices rise, and many do. However, they will wait until the prices dip again and then start their precious metals investing anew. Buying for the long-term is a great option, but it takes patience to see the real benefits.
Now that the price of the metals is lower, it might be time to start thinking about your own investment. However, one should always consider all of the benefits and drawbacks first.
Is Investing a Good Idea?
There is no guarantee that an investment in metals will bring you the same wealth that it brought investors over the past couple of years. It is impossible to predict exactly where metals or any investment will go. Metals can be volatile, so you always need to proceed with caution when you are precious metals investing.
What Types of Investments to Make
If you do feel that investing in metals is a good option for you, it is important to look at all of the different options. The best investment metals are gold, platinum, silver, and palladium. Each of these metals can offer some nice diversity for your portfolio. It may be a good idea to look at the trends of the metals you are considering before you place your investment.
Once you make up your mind on the metal, you also have to think about just how you will invest. ETFs and certificates are two popular options. So is investing in mining companies. However, precious metals investing with bullion and investment quality coins are popular as well. Some will even invest in jewelry, but it is important to temper your desire to buy jewelry. If you are buying as an investment, you have to consider the fact that you are paying more for the jewelry piece than the value of the metal it contains. People buy jewelry for the look of it and the craftsmanship, and this adds to the price. The metal would have to rise higher in value to give you the same return.