Even for a savvy investor, finding new ways to diversify an investment portfolio can be complicated and overwhelming. At TRB Bullion LTD, we know that finding reputable sources of information and investment materials is paramount to protecting your hard-earned money and time. In this article, we’ll explore the basics of investing in precious metals so you know where to get started with gold, silver, or platinum investments!
Choosing the Right Precious Metal For You
Before you start buying and building your precious metals portfolio, the first step to take is figuring out the right metal for your needs. There are a few to choose from, and each metal has its own particular risks and rewards.
When investing in precious metals, you can choose from:
- Gold – the most well-known precious metal, and arguably the most popular choice. The prices of gold are less affected by the supply and demand of the actual metal itself, and instead are usually more affected by other investors. For example, when investors are demanding more gold, the prices rise, and vice versa.
- Silver – another well-known precious metal. Silver has the potential to provide high returns, but due to the influences of both investing demand and industrial demand, the price fluctuations of silver can be seen as more volatile than gold. Because of its potential for use in the industrial world, silver can also be more easily accessible to small-time investors who are starting out.
Platinum – similar to the previous two metals, platinum is traded worldwide and seen as valuable in most parts of the world. In addition, platinum is also a well-used industrial metal and has many practical applications. Due to these two factors, platinum’s prices are affected most by the industrial demand for the metal.
Type of Investment to Make
Once you have decided on the metal you would like to invest in, the next step to make is choosing how you will invest in the metal of your choice. Because every investor has their own preferences and needs, there are a couple of different options when buying into the precious metals market:
- Physical Products – these include bullion bars and bullion coins
- Financial Products – exchange-traded funds, also referred to as ETFs
Both of these options have their benefits and risks. If you choose to move forward with purchasing physical products, your best option is to find a reputable bullion supply to purchase from. At TRB Bullion, we take your investments as seriously as if they were our own and provide broad access to precious metals at highly competitive prices. When purchasing physical gold or silver bullion, investors benefit from having complete control over the product itself. Purchasing bullion helps protect the investment because it is a physical asset stored outside of the financial system. In addition, once you purchase the bullion, you now own that product until you choose to sell it. On the other hand, investing through a financial product like an ETF can be appealing to certain investors who are more interested in convenience than physical assets. With an exchange-traded fund, your asset is more affected by the financial system and its fluctuations, and you do not have any claim to the actual metal product itself.
Other Factors to Consider
Finally, once you have chosen the metal to invest in and the method of your investment, the final step before taking the plunge is to review other factors affecting precious metals investments. These factors to review and steps to take include:
- Deciding if the metal itself will provide the desired diversification to your portfolio
- Reviewing the prices of the metal you are considering
- Whether the risks outweigh the benefits for your particular goals
- If purchasing physical assets, deciding where to store the assets safely and securely
Once you have made your decision and reviewed your options, you are ready to start investing in precious metals, congratulations! At TRB Bullion, we value your investment as if it were our own and look forward to helping you diversify your portfolio. Learn more about investing on our blog or our Facebook page, or browse our wide selection of bullion here. We are always happy to help our customers, too, so contact us today with any questions!