Business is all about taking risks. Investment is all about taking risks. The market can seem like a big scary place if you’re a beginner at investing. You don’t know where to invest. You don’t have an idea about the stock market. You’re confused about which stocks have greater value and which stocks will eventually lose their value over a certain period of time. It’s confusing and you have a lot of questions, and that is completely normal.
I, Maxim Bederov, am an entrepreneur, an IT specialist, and a finance professional. With over 20 years of experience, I have developed skills that have helped many clients and businesses achieve their financial and digital goals. The investment sector is expanding rapidly. Many people are willing to finally take risks. Precious metals, Gold and silver investments are considered a safe option in the financial market. If you’re serious about the investment market, then this guide is all you need to make your way into investing in precious metals.
Why should you invest in precious metals?
Other than energy production, industrial purposes, and jewellery manufacturing, precious metals are considered a great investment. Many experts and traders consider commodities more valuable than paper money. And when you’re a precious metal trader, you know your commodity will hold greater value in the long run. Gold, Silver and platinum group metals (PMGs) are the leading top-traded commodities. If that isn’t enough to convince you, then I will state some basic facts here.
- They are chemically rare and unique
- They’re super malleable. They can be bent into any form possible
- They’re rarely found easily, thus this speaks volumes about their value
- They have been used as money or its source for centuries.
While all of this only proves its extreme value and historical wealth, it’s important to know that people invest in precious metals for a number of reasons. They are meant to protect you against the face of currency instability, economic and political collapse, and market volatility.
- Protects you against the face of inflation
Precious metals have long been known to diversify your portfolio. Investing in precious metals such as silver and gold is found to be very useful in diversification as they have different opportunities and ROI’s compared to bonds and stocks. They are relatively stable commodities unlike stocks. In the era of stock value fluctuation, investing in precious metals is a much safer option
- Solidifies financial stability
In the era of political instability, where many countries face extreme economic unrest, many people have begun to invest in precious metals as they have maintained their global investment power and protected wealth despite inflation and currency devaluation.
- Diversifies your portfolio
If your portfolio only contains stock investments, then precious metal investments are likely to act as an effective investment tool that lowers its volatility and risks as it has no correlation with bonds or stocks. Investment in precious metals is more likely to increase your chances of getting a greater rate of return from a certain amount of risk.
Precious metals are considered to be a more stable source of wealth. Inflation and economic collapse push investors to invest their money into different sources. Gold and silver thrive during inflation and economic downturn. Increased purchases of precious metals mean high demand, and high demand leads to higher prices. It’s a win-win situation.
Precious metal investment tips from Maxim Bederov
- Don’t consider bullion and coins as the same thing
Bullion and coins aren’t supposed to be treated the same. IF you’re an investor, you should know that both of them have a different level of value associated with them. Bullion is valued according to how much it weighs, how pure it is and how pricey it is. Coins, on the other hand, are valued by how rare they are, how much they weigh and what price a collector would put on them.
- Always have a plan
Without proper planning, you might make the wrong decisions. Always do your research on the instability and volatility of the market, draft out a diversification strategy, ask yourself why it would look good on your portfolio, and don’t invest all your money on the first set of gold pieces you see. You might lose a lot if you rush into a large stake of precious metals.
- Be diverse
Invest in a diverse mix of gold and silver commodities. Invest in one or more silver or gold ETF. It’s an extremely liquid process as you don’t need to have a brokerage account to buy or sell them. It balances your portfolio and they are inexpensive.
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