Investing In Precious Metals – Things To Know

As time changes, people are looking for good investments to make. Some say gold is a good investment and some say that silver has the potential to be a good investment. In this article, we will talk about what precious metals are actually good investments and some other things you should know.

Gold bar

What Are The Best Precious Metals To Invest In?

Below, we will talk about the best precious metals to invest in.


This is actually very obvious. When most people think of investing in precious metals, their mind goes straight to gold. The great thing about gold is that it is durable. This means that no matter how long it stays, it won’t corrode. You can easily shape gold into jewelry such as earrings, necklaces, and others. Gold can also conduct heat. While there are some industrial uses for it in electronics and dentistry, it is mostly used for jewelry or a currency form.

Since it has so many benefits, it is highly sought by investors during times of economic trouble. It gives the investors an inflation hedge. There are multiple ways to go about gold investment. You could buy it as jewelry, bars, or gold coins. No matter which one you choose, it’s still very profitable. It could also be bought as gold-focused ETFs. If you don’t know how to go about it, there are companies that offer advice. Click to learn more and get useful information to guide you in this.

If you don’t know what gold ETF is, they are simply exchange-traded funds. They are instruments used by investors to sell and buy gold bullion. Gold exchange-traded funds are in paper form or some other dematerialized form and are used to represent the physical gold. So, you could buy this precious metal without ever touching it.

If you buy gold exchange-traded funds (or ETFs), you are actually buying this precious metal in a different form. It can be bought and sold in this form just as you would normally. When the ETF is redeemed, you get the cash equivalent of the sold gold. So, you never have to worry about where to store it safely.

If you choose to sell this precious metal in the normal way, it will actually cost more. You would have to find a safe storage area and pay for it. You would also have to find a way to supply it. So, while you need to pay with ETFs, it isn’t as much as you would need to pay if you deal in the physical gold.


This is the next most popular precious metal. It is used in electronics, photography industries, and electrical industries. If you are wondering how silver is used in any electrical industry, you need to know that is an important component. Since silver has electrical properties, it is one of the most important components used in making solar panels (We all know how important these are to solar power generation).

silver bar

There are also different ways to use silver. Similar to gold, it can be used for jewelry, coins, or left as bars. It can also be used to make different forms of silverware. Silver tends to be more unpredictable than gold. This can greatly impact the prices. Sometimes, gold can be outperformed by silver, and others not nearly as much.


If you didn’t know, there are six groups of platinum metals and this precious metal is one of them. They are platinum, osmium, rhodium, ruthenium, palladium, and iridium. All these have properties similar to each other.

Similar to silver, platinum is also an essential industrial metal. It is mostly used in the automotive industry and is a very essential component. Platinum is also used by the computer industry and petroleum sectors. While platinum looks similar, it is more valuable than gold or silver.

coins and gold bars

Advantages And Disadvantages Of Physical Precious Metal Investments

If you aren’t planning on using ETFs to buy and sell your precious metals, there are some things you should know. Below, we talk about two advantages and disadvantages of physical investment.


It Can’t Be Erased

These days, most people’s wealth isn’t in physical form but rather in digital form. If for some reason your whole online world crashes down, you’ll still have all your goods. Since you’ll have it all in physical form, you don’t ever have to worry about it being erased or hacked.

With the way hackers keep increasing, it can be somewhat dangerous to have all your goods stored online. If you choose to buy and sell physically, you won’t ever have to worry about something like this. However, there are some other things you will need to keep in mind.


The Storage

If you choose to buy precious metals, you’ll obviously need a safe place to store them all. Finding a safe storage area can prove to be quite difficult. If you store it in the wrong place, you could lose it all. Let’s say that you find a safe area to store it all, the next thing to worry about is paying for the area.

When you get a space, you’ll probably need to pay every month. Don’t get me wrong, with ETF you’ll still need to pay for the storage. However, you won’t spend as much as you would for the physical storage area. Plus, you will be saved from all the worrying.

You should also consider your loved ones when you do this. If you decide to store all your precious metals at home, there are lots of things that could go wrong. A flood could occur, some other natural disaster, a fire, or a few other things. If you decide to store your precious metals physically, make sure to notify your loved ones.


Precious metal investment isn’t for everybody. First, you should find out your reason for wanting to invest in it, whether you need it as an inflation hedge, value storage, or something else. There are pros and cons to every investment. So, before you get into one, make sure you fully understand the risks.

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