Makayla Pone - July 1, 2021

A Beginner's Guide to Investing in Precious Metals

Gold Bullion Buyers Guide

Various Silver Bars ranging in weight as well as manufacturer.

Precious metals are precious for good reason. The value of nonfuel mineral production reached more than $82 billion in 2020.

One reason why that value reached so high was precious metals. They held firm during the COVID-19 pandemic and ensuing recession. If you want to make money long-term, you need to start investing in precious metals.

What are they, and what makes them so valuable? How can you acquire them? How should you buy gold?

Answer these questions and you can get yourself steady revenue and investment streams. Here's your quick guide to precious metals investing.

Study Precious Metals

You've heard of the best precious metals already. But don't make a purchase just yet. Understanding the economic value of each one will help you to make more money. 

Australian Gold Nugget Coins

Several different brands and weights of pure Gold coins.

Gold

Gold is what many people think of when they hear about precious metals. It's valuable for several reasons.

It doesn't rust, meaning it can last for years. Yet it's a malleable material that conducts heat well, making it essential for numerous industrial applications. You can put it into electronics and use it for decorations.

Mines do not produce a lot of gold, so its supply is minimal. This makes it expensive to buy. But it also means it maintains its value long-term.

Gold has proven stable through times of high inflation and economic instability. The price of gold increased by 24.6% in American dollar terms in 2020. This makes it a reliable source of money over decades.

Gold Rounds Monarch Precious Metals

Silver Rounds produced by Silvertowne Minting Company, commonly found in our Generic Silver Crate subscriptions.

Silver

Silver is just as versatile as gold. Manufacturers can place it in batteries, alloys, and appliances like cameras. It stores well, though it can tarnish through time.

Silver is more affordable per ounce than gold is. But it's less valuable and more available than gold. You may need to buy in bulk in order to turn a significant profit.

Gold Rounds Monarch Precious Metals

1 ounce Platinum Austrian Philharmonic Coins minted in Vienna.

Platinum

Platinum is rarer than gold or silver. Some car and technology manufacturers use it to create chemical reactions in engines. It's also a common component of jewelry.

Because platinum is rare, the price for buying it is high. But the price can become cheaper and then shoot up. You can make a significant return on your investment if you time your sales properly.

1 oz Gold Philharmonic Coins
Rand Refinery Gold Bar
Gold Coins

Rare Metals 

There are a few very rare metals that you should know about.

Palladium is a popular metal for catalytic converters and electronics. It's 30 times rarer than gold, which leads to extremely high prices.

But its value has risen steadily over the last five years, passing the $1,500 mark in 2019. It may be a good investment if you can afford it.

Rhodium is another metal found in catalytic converters. It's difficult to find rhodium, as it can get mixed with other metals. But it has proven stable through economic downturns, including the 2007-08 recession.

Acquire Metals in Various Ways 

There are several ways you can acquire metals. Physical ownership is the easiest way. You can go to a retailer and buy the metals directly from them.

You can buy metals as bars, coins, and rounds. You may hear the term "bullion." This refers to the physical metals themselves.

You can focus your purchases on one metal, buying only gold. You can buy also combination packages. Some people like to combine gold and silver so they can have two types of investments.

If you don't have room to store your metals, you can buy stocks and hold certificates for them. Someone else will store your metals for you.

If you want to sell, you can make a sale and hand the certificate over. But you may have trouble accessing the metals you own.

Exchange-traded funds are securities that are based on metals. You can buy them on stock exchanges and their values change based on the prices of the metals.

You do not own any metal yourself. But you have a liquid investment that you can buy and sell with minimal effort.

You can also sign a futures contract. You pick a time that you want the seller to deliver the metal to you. You pay whatever the price of the gold is at that time.

This is a good way to manage the price risk of your purchase. If you're looking to sell, you may be able to make more money long-term.

Find a Great Retailer of Precious Metals Online 

Precious metals should be an investment priority. Gold is a long-lasting and versatile commodity. Silver is more affordable, while platinum and rare metals can lead to significant returns.

You can buy the metals themselves, or you can buy a certificate asserting your ownership. You can also buy stocks and futures in them.

Keep your portfolio diverse. Buy silver and other metals, and buy them in several ways. Make precious metals one component of a larger portfolio.

Don't go far to get your gold. Investor Crate offers premium metals at market prices. Browse our gold selections today.