Many investors often wonder how to invest in precious metals. They see the writing on the wall and realize the power of this investment.
In this case, the coronavirus has forced the world economy into a complete standstill. Before the virus, small companies who once thrived are now struggling to hang on. And large organizations are disbursing billions of dollars in salaries each week to pay their employees to stay home. Even worse, the US Treasury recently printed $2 trillion dollars for the first round of stimulus, which causes massive inflation.
Read that again: the US didn’t borrow $2 trillion dollars. The Treasury printed it. And the more dollars in circulation, they less valuable they become.
With all of this chaos in the world financial markets, is anything safe? Even more important, are any investments gaining value?
Gold has gone up more than $150 per ounce in the past 6 months. And over the past year it’s even better, because it has gone up more than $350 during this period.
Simply put, investing in precious metals is the only safe bet for numerous reasons. Read some of our other posts to learn why it’s such a great investments. But before you go, keep reading to discover the best way to invest in these hot commodities.
Investing Options: Types of Precious Metals
There are four precious metals to invest in as part of a precious metals IRA portfolio. They typically gain value while stocks and other investments get crushed. They act as safe haven investments during times of economic crisis too. So, there has never been a better time to lock into this investment.
But you have to do it right to make the biggest financial gains. And you have to buy it for retirement to maximize profits.
This investment vehicle acts just like a Roth IRA. You pay taxes on your money before depositing it into your account. This way you generate tax free profits from your gold, silver, platinum, and palladium investments.
Talk about an amazing gift! The IRS did Americans a huge favor by granting us the power and privilege to invest this way. Take advantage of this potent opportunity.
Discover the best gold brokers doing business today by reading our top 10 guide. Or trust our recommendation and learn more about Regal Assets right now.
Gold is the granddaddy of all precious metals investments. It’s the big boy that everyone wants to get their grubby little hands on.
And it’s the precious metals that huge countries including India, Russia, and China can’t seem to get enough of. For the past 5 or more years, they’ve bought gold by the ton. And they’ve purchased many tons of it.
As an investor, you undoubtedly express interest in the shiny yellow metal as well. It’s a solid investment offering big returns over time. In fact, gold has gone up nearly 500% in value over the past 20 years.
How many other investments can make this claim?
Silver is another great investment for a precious metals portfolio. Although it doesn’t garner the same interest as gold, it’s still a worthy investment anyway.
What makes silver so special? Its real world value is a huge bonus, for starters. Many of today’s most important electronic devices have silver components inside.
The coronavirus is a poignant example. Did you know that ventilators contain silver-coated endotracheal tubes? These tubes are designed to prevent a phenomenon called ventilator-associated pneumonia.
So, not only does silver possess value as a tradeable commodity, it’s also saving lives. With so many coronavirus patients on ventilators fighting for their lives, the silver is preventing further complications from arising.
This chemical element is used to make jewelry, coins, bars, and ingots. Some investors love to collect platinum. Many fashionable individuals enjoy it because it makes gorgeous jewelry. Still others prefer platinum watches and other goods.
From an investment standpoint, this exciting precious metal is volatile to say the least. In fact, the price tends to swing even more than gold. And right now, in the midst of economic turmoil and a scary worldwide recession, it’s an incredible investment.
Don’t feel fear if you look at platinum’s price chart. It looks scary because it’s lost more than 35% of its value over the past 5 years. Do you know what we see? We see a hot commodity being sold at a massive discount.
To put your mind further at ease, please know that platinum has gained more than 67% in value since 2000. Long term retirement investors appreciate these large percentage gains over time.
Palladium is the precious metal we hear the least about. Yet it’s nearly as scorching hot as gold. In fact, palladium prices have skyrocketed in the past year and show no signs of slowing down.
Since 2000, the palladium price has gone up more than $1600, or over 360%. And in the past year, it gained about $700 in value, or 51%.
It’s pulling back some while investors take profits. But it’s moving up in the world and investors are finally taking notice.
Examples of Gold IRA Investments
- Gold American Buffalo Coin
- Gold American Eagle Coin
- Gold Canadian Maple Leaf Coin
- Gold Austrian Philharmonic
- Gold Chinese Panda
- Gold South African Kruggerand
- Gold Britannia Coin
Examples of Silver Investments
- Silver Australian Kookaburra Coin
- Silver Australian Koala Coin
- Silver American Eagle Coin
- Silver Canadian Maple Leaf Coin
- Silver Austrian Philharmonic
- Silver Britannia Coin
- 10oz Silver Bar
Examples of Platinum Investments
- Platinum American Eagle Coin
- Platinum Australian Koala Coin
- Platinum Canadian Maple Leaf
Examples of Palladium Investments
- Palladium Canadian Maple Leaf
- 1oz Credit Suisse Palladium Bar
- 10oz Credit Suisse Palladium Bar
3 Deadly Precious Metals Investing Mistakes to Avoid Like the Plague
As you’re about to learn, some precious metals investments are better than others. But even that statement is slightly untrue.
In reality, we only recommend one way to invest in these hot commodities. We recommend gold IRA investing. And our favorite broker of choice is called Regal Assets.
We want our readers to know about other ways to invest in precious metals like gold, silver, platinum, and palladium. So we’ll tell you about three other options that we believe are deadly serious mistakes.
Precious Metals ETFs
Buying precious metals ETFs seems like the simplest way to get investment exposure to gold and silver. But is it really the best way?
In our opinion it isn’t. In fact, we recommend staying away from this style of investing altogether. You gain all of the volatility without any of the benefits when you invest in these ETFs.
If you’re a glutton for punishment, some of your choices include:
- SPDR Gold Trust = ticker symbol GLD
- iShares Silver Trust = ticker symbol SLV
- iShares Gold Trust = ticker symbol IAU
Precious Metals Options
Just like buying ETFs, we also feel this is an incredibly dangerous choice. It’s potentially even more dangerous than buying the ETF directly.
You can possibly lose a lot more money if you aren’t familiar with options investing. So do yourself and your family a favor and stay away from this potentially portfolio draining way to invest.
Precious Metals Mining Stocks
Purchasing mining stocks is another potential way to play the gold and precious metals market. But like any other investment, you need to study the companies in order to make good picks.
Why choose this inferior investing method when you could own physical gold, silver, and other precious metals? You’re better off buying physical precious metals and storing them in a secure vault while they gain tax-free value for your retirement.
For those interested, we recommend Regal Assets as our favorite gold broker of choice.
Other Foolish Ways to Buy Precious Metals as an Investment
Besides the stock market, there are other foolish ways to invest in precious metals. Since we’re sharing how to invest in precious metals, we’ll tell you three more dumb ideas to consider below.
1. Buy from a Jewelry Store
Purchasing gold or silver jewelry is a waste as an investment. Have you ever tried to sell a gold chain or silver earrings? Nobody wants them and you can barely sell them for a fraction of the cost.
2. Buy from Craigslist or eBay
Buying gold or another precious metal from Craigslist or eBay is only asking for trouble. These websites provide very little buyer protection. So you’ll likely end up getting ripped off for your troubles.
3. Buy from a Coin Collector
Properly investing in precious metals has nothing to do with collecting coins. Gold and silver coins certainly have value, but collectors buy them for their rarity. You’ll benefit the most purchasing precious metals for their content, which consistently gains value over time.
Open a Precious Metals IRA: Our #1 Recommended Method
As you can see, we strongly believe in investing in precious metals by opening a gold IRA account. You’ll receive tremendous benefits when investing in gold and silver for your retirement. They include:
- Portfolio diversification
- Hedge against inflation
- Hedge against recessions
- Highly liquid asset
- Hedge against falling stock prices
- Strong global demand
To take advantage of this phenomenon, please open a precious metals IRA account today. We recommend Regal Assets as our #1 gold company of choice. Read through our website to learn more about them today.
I understand that an IRA is an account you set up where physical precious metals assets are held in trust for you, but who holds them? Is it the U.S. government?
Also, I happen to be from Canada. What is the equivalent of a precious metals IRA up north? Do we have such a thing?
Finally, I have been told that having about 5% of your overall portfolio in gold or other precious metals as a ‘war chest’ is a good idea. Is that about right?
And if I wanted to sell some of my IRA holdings to buy stocks during a crisis like COVID19, how liquid is the investment? How long does it take to get some cash out of your holdings?
The physical precious metals in a gold IRA is held in a depository by a gold IRA company of your choosing. That is why we have our list of Top 10 Gold IRA Companies.
Unfortunately, gold IRA’s are only open to US residents and I’m not sure what the equivalent in Canada is. You can try contacting Regal Assets, our recommended company of choice and ask them if you qualify even if you reside in Canada or if they can recommend other options for you.
Many experts say different things about how much to invest of your portfolio into precious metals. The range is usually 5-30%. I myself prefer higher.
Fortunately, a gold IRA can hold stocks and bonds in addition to physical precious metals, and if you choose the right company with a buyback program, you can very easily convert your physical precious metals to other investments or currency.
Thank you for all the inquiries, Michael!
Thank you David for this article. It really strikes a chord with me as the COVID-19 pandemic seems to be wreaking havoc on the property market which is where my main investments are. I have never invested in gold mor other precious metals so it was interesting to hear that value of gold has appreciated over 500% in the last 20 years. I haven’t looked at your articles on Regal Assets but do you know if Regal Assets operate in Australia as well?
Hello Steve W.! Unfortunately, Regal Assets does not operate in Australia. It is currently open to only U.S. and Dubai residents. You can, however, contact them and see if they can do something for you or if they can recommend any alternatives. I think you can also either store the physical precious metals at home if it’s a small amount, or store them with a secure depository that operates in Australia. Thank you for dropping by with the feedback and the inquiry!
I had to stop and re-read that statement about the US treasury printing 2 trillion dollars … I wonder what effect this is going to have on the rest of us in the world …
Gold has gone up a lot, wow! I knew it was rising, but I did not know how much … I recently read that silver is now also an important investment, it being so useful for electronical gadgets and now ventilators too. Palladium is something I have not heard about, that will be worth checking out.
In your example of investments I see a few different countries mentioned, but could someone who lives in a country that is not mentioned still invest with any of those companies online?
Hello Christine! The only people who can invest in a gold IRA with the currently listed companies are residents of the United States of Dubai. There are other ways for people to invest in physical precious metals in other countries. They would have to hold them themselves or through secure depositories. Yes, the US is printing more and more money every day putting themselves deeper in debt. Thank you for the feedback and the inquiry!
Hello there! Thanks a lot for this wonderful article. Your website is very simple and easy to navigate through, makes my reading very swift and enlightening. Knowledge is power, said a wise philosopher, so no knowledge is wasted. I’m glad I’ve come to learn and know how to buy precious metals. Thanks alot
Hello Philebur! I’m glad you appreciate the contents of my article. Thank you for the compliments and the feedback!
Well, when I was first told about this home of investments, it was in 2015 but I waved it off because I didn’t think at that time that anything can go wrong with the economy. I didn’t believe that our economy could dwindle down the drains air anything. But I’m happy about this here that you can tell us about the precious metals. I think I will seize this opportunity and make this investment.
Hello Henderson! I’m glad you are taking this opportunity to invest in precious metals yourself! I wish you the best! Thank you for sharing your experience and providing the feedback!
This is an awesome article that you have got here. Really gold investment is resurfacing and now is probably the best time to acquire an investment. Your article is quite easy to understand and full of all the necessary information that an investor would need. The information you offered are helpful.
Thanks for Sharing.
Hello Awinikistevie! I’m glad you appreciated the details of my article. Thank you for the compliments and the feedback!
helloooo dear, thanks for sharing these valuable content with us, I was actually doing some research online when I saw your post, I am glad I got to see these post, I only wished I saw these post two weeks ago, love your sense of humor on these article, thanks for the info, I’ll surely do some recommendations
Hello Skuchmane! Thank you for the compliments and the feedback on my article!
I must say that the US government has proven to be the exact example of what à good government should do to look out for its citizens at troubling times…they have shown absolute care and love to their citizens that we all would wish we were from there…Again, your article proves great facts on how best to invest in previous stones such as gold and I really do find your article intriguing…
Thanks for the awesome review…
Hello Evans! Thank you for the feedback and the compliment! I really appreciate it!
This is fascinating. You shared a lot of interesting information here about these metals that a lot of people aren’t aware of. As you mentioned, nobody ever talks about palladium and even platinum isn’t something most people think about often. I certainly wasn’t aware of the role silver plays in these ventilators. That makes it an even more attractive investment. At the moment, I have stocks, long and intermediate term bonds, CDs, crypto, the GLD ETF you mentioned, and another ETF for commodities. I really would like to look into actual physical gold, though, as well as some of these other metals. Thanks for sharing this valuable info! I will certainly bookmark this page for future reference and share it!
Hello Mark! Thank you for sharing your experience with your investments! I would recommend putting a small percentage of your portfolio into precious metals, such as the ones you mentioned. Cryptocurrency is also a good investment for the long-term. Thank you for appreciating my article and sharing it! I appreciate it very much!
I know that finding a good article does not come by so easily so i must commend your effort in creating such a beautiful website and writing an article to help others with useful information like this.According to me back then i’ve always thought that unlike any investment, you shouldn’t put too much of your money into precious metals—this would be unbalanced. … Metals might be a defensive strategy, but when times are good, most financial experts seem to agree that precious metals aren’t the best investment. If you do want to invest in metals, limit your percentage.But right now i noticed i was being primitive in my thoughts,investing into precious is the best right now judging from the drastic drop in the economies of the globe.Here are some few reasons for Investing into precious metals: Demand and Scarcity-Like any natural resource, mining will slow until eventually our precious metal reserves are depleted.Liquidity-The problem with owning an expensive car or a nice home is you cannot quickly turn them into cash,Diversification. …it is also a Safe Haven Against the Dollar.i strongly recommend anybody so invest in precious metals.
Hello Wilson Kume! Indeed, you explained it very well! Investors invest in precious metals to preserve their wealth during good times, but it can increase your wealth drastically in crisis times. This is what makes it a safe haven nest egg in anyone’s portfolio. Thank you for the feedback, Wilson Kume!