5 Best Proven Methods To Investing Precious Metals
While there are so many ways to invest your savings or open a retirement account in typical markets dominated by stocks, bonds, REITs and other securities, there are reasons why the precious metals market is still a popular one. Owning gold and silver assets could be important for protecting yourself from inflation, trade issues or just owning a hard asset that can increase in value over time. If you’re considering investing in precious metals like gold and silver, you’ll want to make sure they meet the investment grade requirements set forth by the ATO. But once you’re ready to invest in gold or silver, consider the following options.
Buying Precious Metals Online
Probably the best way to buy gold & silver bullion and not deal with the risks of trying to store it yourself is through a reputable online dealer. As long as you know for sure the dealer has been reviewed and is running a legitimate precious metals company, you can buy and rest assured you have your investment in good hands. But understand that when you do buy from a dealer this way that you are obligated to fulfil a contract that you might not be able to cancel depending on your buyer’s agreement. Usually, you can sell your precious metals back to the dealer if you no longer need or want them.
Buy A Precious Metals ETF
One way to make an investment in precious metals if you don’t want to have to deal with physical bullion itself is through buying an ETF in precious metal. The reason for doing this is to have a gold backed investment that could do well when other markets are not, and if you want a little more flexibility in trading your asset over the short time, this might be right for you. Now keep in mind that in most cases you don’t actually own physical gold with ETFs, but there is one exception to that such as owning shares of the AAU ETF that you can actually redeem for physical bullion. But usually precious metals ETFs will be treated more like bonds.
Buying Mining Company Stocks
Another way of getting in on the precious metals industry while also having a stock investment in it is to buy mining stocks. The benefit to these stocks is that not only can their value increase when the values of the precious metals are increasing in the markets, but you’re buying into a company that could grow over time leading to even more returns. But you don’t get to own physical precious metals by going this route, and just like other stocks, mining stocks carry inherent risk with them.
Buying From A Local Bullion Dealer
If you’re looking to buy physical precious metals to hold onto for many years, going to a local coin shop or bullion dealer should be a consideration. Visiting the shop can allow you to see the bullion itself and make sure it’s exactly what you’re looking for. But you will need to do research on the dealer to make sure they do sell what they advertise, and taking the physical bullion home with you is also risky since you could be making yourself a target of theft.
Investing In Custodial Storage Services
Whether you’re buying physical gold and silver in person or through an online company, investing in protection is part of the investment. If the dealer is an authorized gold custodian, you can have them insure it and ship it to a very high-security vault or deposit location where it will be kept until you absolutely need it. Doing so not only can protect your assets from theft, but specific precious metals vaults can also have tax shelter provisions and cannot be seized by government agencies.