Throughout the past several years, it’s become increasingly apparent that when it comes to our financial situations, we need to have some backup plan to ensure that we’re secure and safe in times of crisis.
While the pandemic was awful, and we’re glad to be past it, that is something that it taught us, at least.
It can often be hard to decide about our finances – especially when so much can be riding on it. Some folks have considered investing in gold, silver, palladium, or platinum – precious metals. Are they worth it, or are they just another thing we’ve been told to buy?
Admittedly, it’s a difficult question. Considering the many factors involved, it’s hardly surprising that many people are wary of putting their money into precious metals. The recent inflation levels don’t help with the trepidation, as you can read about here: https://pkteamvn.com/fighting-inflation-monetary-policy.
With all this said, though, it’s essential to understand what sort of asset precious metals are before we take the plunge.
Knowledge is power, so we’ll do our best to explain how this works and whether or not it’ll be worthwhile for you.
What are Precious Metals?
First things first: let’s define what precious metals are.
They’re a type of metal on the period table with unique properties such as malleable, ductile, and inertness.
Additionally, because they are relatively rare, they have value purely based on that.
The “big four” precious metals for investing are palladium, platinum, gold, and silver. Most of us have at least heard of platinum, gold, and silver, while palladium may be a surprise at first. Generally speaking, most investors prefer to work with gold because it is proven and has been popular for quite a long time.
It’s worth noting that each has unique properties that make them valuable for investors. That’s part of what makes choosing between them so tricky, but part of that decision will probably be based on cost. Silver is the least expensive of the four, with palladium often being the priciest to purchase directly.
Thankfully, we don’t have to track those things alone. Instead, we can utilize groups like MFEA to keep an eye on the prices of precious metals and to provide reviews of the various brokers out there.
That’s the other piece of the puzzle that can be pretty stressful.
Picking a Broker
Unfortunately, navigating online to find a trustworthy precious metals seller isn’t straightforward. Considering how many there are, it can be difficult to tell which is a legitimate and trusted business versus which is a scam.
How can we do it, then?
Keep an eye on whether the gold you purchase will fully belong to you without strings attached or if the broker could still pledge it otherwise. It is a pretty big red flag since there’s a chance that if you go to liquidate your investment, it just won’t be available to you.
So, generally speaking, you’ll probably want to avoid retailers that don’t offer full ownership over the precious metals you’re buying. Otherwise, it doesn’t hurt to check out reviews of the other brokers you’re considering. Try some of the resources we’ve provided, though plenty of studies can be found online as well!
We recommend checking them out primarily to get perspectives from other customers and investors and some thoughts from financial experts. Luckily, they write comprehensive analyses of many popular gold sellers, so we can read those thoughts anytime.
Is it Hard to Invest in Precious Metals?
Many newer investors worry about whether or not it’s challenging to get involved in this market. Journals such as this delve into that question a bit, but we’ll do our best to condense the answer.
In the past, it was difficult to start investing in gold, silver, palladium, or platinum. They weren’t readily available for purchase except at specialized shops, and even then, the prices were relatively high. Nowadays, it’s much more straightforward.
Accessibility is much higher now, as just one example of why this is the case. Whenever we want to buy bullion or coins, we can search for a broker online and find a digital retailer almost instantly. Of course, we still have to sort through them to pick the “right” one for our needs, but that’s still less of a chore than finding a brick-and-mortar store to pick up the metals from.
The biggest challenge comes from figuring out which metal we want and whether or not we should be pursuing this. Since most metals are expensive at first glance, it can certainly raise that into question.
Are Precious Metals Worth Investing in?
At last, we can tackle the most significant question: Should we invest in them or look for something else?
To answer this, we do have to consider how they work as an asset. Rather than something folks invest in to make money, they’re more of a method of storing our wealth.
Seeing as bullion and coins aren’t impacted by inflation. They tend to be a safer method of storing our net value than paper currency.
Additionally, we can liquidate gold quickly in times of need, so it helps create a backup plan in times of crisis (as we hinted at earlier).
In that sense, investing in precious metals is worth it. However, it’s up to us to make a firm decision there, so do more research first if you’re unsure!