Finance

Investing 101: The Ultimate Guide To Investing In Precious Metals For Millenials

All that glitters may not be gold always, sometimes it could be silver or platinum too. So, whichever one it is that you have chosen to invest in, we hope you aren’t distracted by the shine but have rather made the decision based on how lucrative each option is in your specific case.

For instance, silver is not valued as high as gold. In gold too, you may find that anything below 22K is not a good investment. Moreover, Platinum is a rare metal, in fact, the rarest of them all! Yet, the price of platinum may sometimes be lesser than that of gold. Why? Simple because of the supply and demand apprehension.

Gold is less in supply but more in demand. Platinum is albeit lesser in supply than gold, but also lesser in demand than the yellow metal. But that is only half the decision made, investments and their returns greatly depend on how you invest in it too! So, to help you understand how can you invest in these noble metals, we have compiled a list of 5 common methods that could be your tool:

  1. Item ETFs:

Electronically Transferred Funds or ETFs exist for each of these three valuable metals. To tell you what an ETF is in simple words, it is an advantageous and fluid method to buy and sell these physical metals without physically having them. Yes, you wouldn’t have physical ownership of the gold or silver you invest in! This could be ideal for those who are wary that they may lose the metal. However, at times of recession, your bond papers would not be as useful as the physical metal.

  1. Bullion:

Coins and bars are for the individuals who have the right storage for it, such as a well-protected locker or an unbreakable safe. Needless to say, this is the most anxious way of storing the metal. If you lose the bullion,  all your investment bites the dust just like that! However, there is a flip side to this coin too.

No papers or bonds would provide you with the same assurance that comes with having the metal in hand. At times of desperate needs, the physical form of gold or silver is what really matters! Hence, it is advisable to have some handful of bullions that can be used in the need of an hour. There are various places such as Gold Stackers from where you can have a good quality of gold or silver.

  1. Futures contracts:

When you invest in a futures contract, you get the benefit of liquidity as every day your investment stands at the price of gold on that specific day, and you have the option to sell it off.

  1. Common stocks and mutual funds:

Shares of mining companies and private schemes also give investors the option of investing in their offerings. However, it is advised that you evaluate the company’s overall performance before making this move since any fluctuation in the company’s market share would bring a fluctuation in your investments too.

  1. Certificates:

Certificates offer each one of the advantages of physical gold proprietorship without the issue of transportation and storage falling on the investor. But all things considered, in case you’re searching for protection in a genuine fiasco, endorsements are simply paper. Try not to anticipate that anybody should take them in return for anything of significant worth.

These days we also have an option of investing in gold digitally, wherein you could purchase a few units online and a transaction receipt confirming the purchase is sent to you. Later, the gold can be resold online too. However, you could also exchange the digital receipts for actual gold as per your convenience. We hope this article helps you make the right choice on how you want to go about your noble metals’ investment.

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