Makayla Joanne - January 13, 2022

Are Precious Metals a Good Investment?

Silver Round Stack

When it comes to the question, "Are precious metals a good investment?" the answer all comes down to what you are looking to get from your investment and what kind of metal you want to invest in. After all, you have plenty of options when it comes to precious metals. You could invest in gold bars or copper coins and everything in-between.

 There are options on the precious metal market for everyone, no matter how much money you might be willing to spend on investments. If you're curious about the pros and cons of investing in precious metals, you've clicked on the right article. Here, you'll learn about the most common metals that people tend to invest in, such as gold, silver, and platinum.

 By knowing the different ways to invest in precious metals, you can make better investment decisions in the future. To start off the article, let's take a better look at what investing in gold is like.

What to Know

Buying bullion in the form of gold has been one of the most popular precious metal investments for a long time, and for a good reason. Investing in gold comes with plenty of benefits because of the nature of gold on the stock market. There are plenty of risky investments on the stock exchange, but gold is not one of them.

 Instead, gold has a great reputation as being a "safe-haven" investment. What might this mean exactly?

Gold as a safe-haven investment means that the price of gold is very stable compared to other types of precious metals. Gold as a safe-haven investment also means that people tend to buy gold like crazy during times of economic crisis. Again, this is because of how stable the price of gold tends to be even when the economy might be in a low spot. Gold is also a hedge against inflation.

 If you had a $20 bill forty years ago, you might be able to buy a wide variety of items. That same $20 bill today, however, would not be able to buy very much. On the other hand, $20 worth of gold forty years ago would resist inflation and still be a valuable piece of metal even today.

 Investing in gold is not just for the rich either. This is because there are various ways to invest in gold, much as there are different ways to invest in other precious metals. The main ways you can invest include bars and coins as well as digital options.

Investor Crate Gold and Platinum Bullion

Gold and Platinum Bullion inside of an Investor Crate crica 2018.

Investing in Bars and Coins or Digital Gold

Many people think that owning a bar of pure gold is only a fantasy, but it doesn't have to be. There are plenty of gold bullion dealers that specialize in selling pure gold bars and coins.

You should know that bullion refers to precious metals that are at least 99.5% to 99.9% percent pure. You should make sure that if you decide to buy bullion, you buy it only from reputable bullion sellers. This is especially true if you decide to buy bullion online rather than in person. This is because buying from a bullion dealer that is not reputable could easily lead to you getting scammed and losing out on a lot of money.

 If you're debating whether you should invest in coins or bars, consider what you're looking for from your investment. Gold bars can be very expensive but, at the same time, they give you the opportunity to buy a lot of gold at once. They are also easy to store since you can stack them over each other without any problem.

 However, you do need to find a safe place to put your gold bars, either in a safe at home or in a bank. Gold bars also are not very liquid, which can be a problem for some people. Gold coins, on the other hand, are much more liquid.

Gold coins are also cheaper than gold bars because they weigh much less.

You have a few options when it comes to physical gold. But if you don't want to invest in physical gold, digital gold in the form of ETFs or mutual funds is always available.

 While digital gold may be easy to buy and sell, it may not be as resistant to inflation as physical gold.

Investing in Silver and Platinum

Silver is the next most popular precious metal next to gold. While silver is not a very volatile investment, its price can fluctuate more than gold. This is because silver not only has value as an investment, but it is also used by industries to create electrical devices.

Even so, silver is usually a great investment for beginner investors because it costs less than gold. Even if you were to lose out on your investment, you would likely not be losing very much unless you invested in huge quantities of silver. As with gold, you can choose to invest in silver in the form of coins, bars, or digitally.

 Platinum is a less popular choice as a precious metal investment because it is so rare. Platinum is found very deep in the earth, and not very many platinum mines exist. Because platinum is rare, it tends to be more expensive than gold, but its price may vary if the countries where it is mined end up in turmoil.

 Platinum is considered a low-risk investment. So, if you have the funds for it, there's nothing stopping you from investing in platinum.

1000 grams of Fine Silver

1000 grams of fine Silver in bar form.

Choosing the Right Precious Metal for You

"Are precious metals a good investment?" is a great question, and you should now know the answer. Precious metals are very versatile and can be a great addition to your portfolio. Beyond that, investing in precious metals is a great way to hone your investing skills.

To learn more about easy investing through our monthly delivery crates, contact us here.

This is in no way to be considered investment advice. Past performance is no guarantee of future results. Asset allocation and diversification do not ensure a profit or guarantee against a loss. Keep in mind that any form of investing involves risk and you should always consult with your financial advisor before making any financial decisions. Investor Crate, LLC., it's subsidiaries and staff will never advise you on any asset as our aim is to provide a fun and affordable service should you decide to purchase Precious Metals.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

4 comments

  • Elizabeth VlugJan 19, 2022

    Thanks for all the information. Just getting into this hobby and you are right, it is easy to be fooled. Think I will start with coins, now just to decide gold, silver or platinum.

  • DonateeverythingJan 19, 2022

    Of course they are. Precious metals are deflationary.

  • ScottJan 19, 2022

    Definitely something to look into.

  • John DurginJan 13, 2022

    Investor Crate is the best place to buy Gold and Silver from in my opinion. Honest company, great deals.

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