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Welcoming A New Year for Precious Metals Investing

Section: Economy

Buying precious metals has proven to be an excellent method for safely investing and growing monies, and 2014 looks to be another successful year for this increasingly popular market.

Investors who are interested in putting money in precious metals should look towards silver and platinum this coming year, as these particular metals are hotbeds for investors seeking to diversify their investment portfolios, and are in very high demand.


Currently, a growing middle-class population in Asian countries such as China and India are contributing to precipitous growths in these metals, and more people are finding their way into this rapidly burgeoning market. Another factor that is contributing to the rise of these metals is their industrial usefulness. With a rise in the demand for cars and technologies, factories are in constant need of platinum and silver, both of which are instrumental in the production of automobiles’ catalytic converters, and an array of technological equipment ranging from dental and laboratory tools to motherboards and circuitry.

In today’s day and age of technology, many investors are expressing interest in trading investments for precious metals, or purchasing precious metals in forms other than physical. What used to be one of the most appealing aspects of a precious metals investment is not necessarily wanted by every investor, and the option of investing in precious metals’ stocks, exchange-traded funds, or futures has become more and more popular.

Regardless of the method you choose to invest through, precious metals are a great way to invest safely and protect your assets. Diversifying your portfolio with an investment like precious metals is highly recommended, so choose from one of the five main investment outlets.

First up is investing in ETFs, or exchange-traded funds. ETFs are bought and sold on a platform exchange system, allowing investors to place money in shares of the metal of their choosing.

Second, investors can choose mining stocks and mutual funds, an indirect investment method which is closely related to the price of a metal at a given point in time. These sorts of investments are best achieved through mutual funds with immaculate track records and low fees.

For the more bullish investor, futures and options offer a way to predict the future performance of a metal, and for this reason pose the greatest risk to your money. Though a bit more dangerous, these investments are also the most liquid, so you will likely go big or go home.

Bullion investing is a simple and traditional way to invest in a metal through its physical form. Investors who enjoy feeling the entirety of their investment in a tangible form in hand will benefit most from bullion investing.

Finally, certificates are used as a different method for investing in a precious metal physically, and are a fine low-risk investment choice for those uninterested in the aforementioned paths.

Another important concept to take into consideration when investing in precious metals is determining the valuation of a metal. Investors can stay up to date on the prices of metals like gold, silver, platinum, and palladium by simply checking dealer websites or official indexes online or in the newspaper. The performances of ETFs, ETNs, various stocks, and other investments are reported on a regular basis, and the more you know, the better off you will be.

Lastly, an investor should always know about his or her own personal investment. This includes the grade, the approximated value, the size, the purity, and the condition. Investing in precious metals is easy thanks to all the helpful resources available, but if ever you find yourself at a crossroads, get in touch with a professional and reliable numismatist to clear up any concerns or questions you might be having.

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