You are probably wondering what the best investment is given the recent global economic climate. China is highly investing in gold while India, after the recent government regulations on gold importation, has turned to importing tonnes and tonnes of silver. Quantitative Easing and currency minting, by the Federal Reserve, not to mention the almost impossible-to-settle global debts, have all left economies wobbly and highly unreliable. Investing in precious metals is the key to securing one’s wealth; thanks to their scarcity, which increases their price, and their durability, which curbs depreciation.
Investing in precious metals
Precious metals comprise worthy, mined materials whose high industrial use and rarity make their trading very beneficial. Common precious metals traded around the world include silver, platinum, gold and palladium. Traded precious metals must contain an extremely high percentage of the metal in question, and must be approved for trading. Coins, bullion, ETFs, stocks, bars, numismatics and products comprise the various forms of these metals.
Physical vs. paper precious metals
Investment in precious metals can be made by buying in the physical metals or paper metals. Physical metals refer to the coins, numismatics, bullion and bars of these metals, as well as commodities such as earrings and necklaces, made of these metals. Paper metals refer to ETFs and stocks in the precious metals mining, investing and trading companies.
Why physical metals instead of money and assets
The awful debt crisis affecting, almost, the whole world and the inadequacy of money to pay it have governments channeling almost all the available cash to settle their debt instead of funding precious metals companies. This reduces these companies’ activities, hence profits and, ultimately, their stocks’ value. The debt has also led to more than one QE (Quantitative Easing), which saw governments buy collateral to increase the amount of money in circulation, and increased currency minting; resulting in money inflation and the consequent reduction of its purchasing power.
Physical gold and silver, on the other hand, are rising in value due to their durability and insulation against the debt, falling economies and cash inflation. The mining of these metals (hampered by reduced funding) produces fewer quantities of metals than the already present limited reserves. This, coupled with the fast depletion of these metals, not to mention the excessive importation by China and India, reduces the quantities of these metals available for sale, and as the old supply-demand rule applies, the prices of these metals continue to go up. Physical metals, therefore, proof to be a better and more stable investment than assets and money.
How to invest in precious metals
Now that you know why physical gold and silver investment is a more solid choice than any other investment, you are probably wondering how to go about investing in them. First, you will need to find an authentic dealer of these metals. Always ensure to clarify the authenticity of each piece and acceptable storage rules. You can dispose the metals or commodities as you wish, depending on the investment you have.
All businesses that deal precious metals commodities such as rings, necklaces, earring, chains, bangles and teeth should be licensed to trade. Positive customer reviews or referrals from other would be added advantages. It would be a wise move for clients to seek a second opinion, on the purchased products so that they do not keep fake commodities thinking they have an investment that may benefit them someday.
Precious metals IRA
Investment of precious metals can be done through purchasing products of these metals or incorporating the metals in individual retirement accounts (IRA). Companies that deal pure metals should be at least BBB (Better Business Bureau) accredited and rated, licensed to trade and have TrustLink, BCA and other platforms’ positive customer reviews. Companies that do not have the above basic features should be approached with caution, lest someone loses all his/ her hard earned money buying worthless and fake metals.
Unlike silver and gold commodities, investing these metals in IRA require the allocation of a custodian. Once a person buys the desired quantities of these metals from a dealer/ company, he/ she must have a third party custodian of the physical metals. The precious metals company may manage the client’s investment, but the custodian stores the metals, up until the expiration of the agreed time.
Unstable economies and inflated currencies have reduced the worth of money and real estates. However, investing in silver and gold is turning out to be a worthy and promising investment that will withstand unstable economies and time. The sources of these metals are fast becoming depleted (decreasing available quantities), and China and India are busy acquiring these metals, decreasing available quantities, further. Decreased availability increases their price, and with time, the quantities drop significantly as prices increase. The massive need for these metals in the photovoltaic industry has made them more precious than before. This means that whichever way you look at it, physical metals investment, currently stands as the best investment option compared to all other investments.