After all, there is always a certain degree of risk that we take when we make an investment. What makes it worthwhile, though, is the potential returns that we can receive! The issue is, especially right now, that most of us do not have wiggle room to potentially lose out on the money that we put into the investments. Therefore, it seems riskier than ever to put our dollar into something that we are not one hundred percent confident in.
Perhaps that is why so many people have turned to more traditional forms of investing. Now, by this, I am not referring to things like stocks and bonds. While we may think of them as traditional at the current junction, the fact of the matter is that what we know as the “stock market” is a relatively recent invention when looking at all of human history. Instead, I am talking about commodities.
If you are not certain what that is, check out this resource: https://www.investopedia.com/ask/answers/021615/whats-difference-between-commodity-and-product.asp. That should offer you any background information that you could need for this topic. Otherwise, though, keep on reading!
Staying on top of the trends that occur in markets is definitely something that takes practice and skill. However, there are a few assets that retain their value inherently over long periods of time. They are not influenced by things like the value of paper money, so inflation is not a concern.
Most often, these are forms of commodities. In particular, I want to discuss precious metals today. Take a moment to think about this: what material has stayed valuable throughout almost all of human history, since the very moment that it was discovered? If gold came to mind, then you are right!
This does leave a lot of people wondering whether it is still worth purchasing though as a form of storing wealth. The answer is simple: yes. Why is that? This page may offer some insight: https://www.geologypage.com/2019/04/precious-metal-the-15-most-precious-metal-in-the-world.html.
As you saw, precious metals are called that for good reason. They have certain chemical properties that allow us to utilize them for a variety of important purposes. Next time that you look at your smart phone, remember that the inner circuit board probably has some gold and silver in the mix! Additionally, for a lot of higher end or eco-friendly vehicles, their exhaust pipes contain palladium.
So, if you are looking for something that will retain its value for a long period of time, gold seems to be one of the options. People certainly have their eyes on it as a hedge against inflation, meaning that it is not impacted by the value of paper money. Certainly, something to consider!
As I am sure that you can imagine, there are a few different ways that you can dip your toes into investing in gold (or dive right in, depending on your own confidence). Your first step should be to figure out how you want to do it – so, select whether you want to buy bullion, get stock for a mining company, or something else. Those are typically the most common methods, though.
To determine what could work for you, though, you may want to learn about investing in precious metals from a source that you trust. What information I have provided already is a good place to start, but it never hurts to educate ourselves further! Thankfully, there are plenty of organizations and individuals who are willing to lend that olive branch to more inexperienced investors.
Once you sort out what form of precious metals that you want to invest in, the next step is usually figuring out where to purchase it from. Bullion is usually easy to find compared to other methods, seeing as there are many brokers out there who sell it. So, if you are unsure where to get started, that is generally a nice place to begin.
After that, you need to figure out where you want to store your investments. There are businesses known as custodians who can assist with that for physical bullion or gold coin collections. Some search online should be sufficient in locating one.
At the end of the day, moving past any further semantics, this is the question that most of you reading want to know the answer to. Unfortunately, I cannot exactly give a clear cut “yes” or “no.” Instead, I can tell you some of the reasons that investors do find it worthwhile to add precious metals into their portfolio.
The biggest thing is probably that something like gold can serve as a hedge against inflation. Since I have already mentioned that, though, I will move on to something else for now. Its ease of access for even novice collectors and investors is another part of the appeal. The fact that it has little risk simply makes it a no-brainer for many beginners.
With all of that being said, though, it will ultimately be your decision on whether you want to give it a try or not. There are some nuances involved, and it will not be the right choice for everyone. Speak to your financial advisor or accountant before you make the call, if you are really on the fence about it.
You could even consider consulting with friends and family. Learn about whether they have tried it or if they already have accounts! Since you can even make retirement accounts that contain precious metals, the versatility means that almost anyone could already have started. That is a veritable gold mine (ha, get it?) of information that you can tap into!
