4 Things To Know – Forbes Advisor – Technologist

Precious metals like gold and silver have long been sought-after for their beauty, scarcity, industrial uses and reliability as stores of value. These assets continue to play an important role in many investment portfolios, with investors often viewing them as a potential hedge against inflation and market volatility.

What makes precious metals particularly appealing is their tangible nature and limited supply, along with historical price trends and diverse industrial uses. Unlike stocks, which can fluctuate dramatically based on company performance, or currencies that central banks might devalue, precious metals have often retained their value—at times even rising during economic downturns.

If you’re considering investing in precious metals, here are four key things you should know before you get started.

 

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1. Types of Precious Metals

Several types of precious metals are popular among investors, with gold, silver and platinum being some of the most commonly purchased. Each metal has unique properties, uses and market dynamics, which can impact how it fits into your portfolio. Here are some key distinctions to consider:

Why Many Investors Start With Gold and Silver

Gold and silver can offer an appealing mix of stability and moderate growth potential. Gold has often been viewed as a hedge against inflation and economic downturns, with its price more than doubling from 2007 to 2011 during the Great Recession, according to the U.S. Bureau of Labor Statistics. While these trends suggest that gold can be a stable investment during turbulent times, individual results can vary based on market conditions.

On the other hand, silver’s lower price can make it more accessible for investors on a budget. Its industrial uses in sectors like electronics and renewable energy can add to its growth potential, making silver a versatile investment that combines the potential for reliability and the chance of profit based on industry demand.

2. Physical vs. Paper Investments

When getting started with precious metals, it’s also important to consider whether to invest in physical metals, paper assets or a mix of both. Physical metal investments involve buying and storing actual physical metals in the form of coins or bars. Paper assets, on the other hand, include investments like stocks, mutual funds and exchange-traded funds (ETFs) that track the price of precious metals.

Here are some of the key differences between these two investment options:

While paper assets offer a range of flexible investment options, many investors may appreciate the security of owning tangible assets like gold coins and bars, particularly during highly volatile markets or unstable economic conditions.

If you’re interested in owning physical metals, American Hartford Gold can help make the purchase process more accessible. They offer personalized guidance from precious metals specialists, access to a wide variety of physical gold and silver products, a price match guarantee and secure delivery options that include insurance and tracking at no additional cost.

3. Finding the Right Dealer

Finding the right precious metals dealer can go a long way in helping ensure a more secure and smooth investment experience while keeping extra costs to a minimum. Here are some factors to consider when choosing a dealer:

• Industry reputation: Look for companies with a long-standing presence and positive reputation in the precious metals market.
• Transparent pricing: Find dealers that provide clear, upfront pricing with no hidden fees.
• Customer reviews: Read customer feedback on platforms like TrustPilot or the Better Business Bureau (BBB).
• Secure storage and delivery: Consider the options available for secure storage and delivery, including insurance coverage and tracking services.
• Additional services: Some dealers offer additional services, such as buyback programs or precious metal individual retirement accounts (IRAs).

For instance, American Hartford Gold has an A+ rating with the BBB based on over 620 reviews and earns 4.8 out of 5 stars on TrustPilot based on over 1,300 reviews. The company reports helping clients buy over $2 billion worth of precious metals and offers a buyback program with no additional liquidation fees, allowing clients to sell their metals back at market price without worrying about excessive charges.

 

Quick & Easy 3-Step Tax-Free, Penalty-Free Gold IRA Setup

 

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4. Planning for Secure Storage

Securing your precious metals is one of the most important steps after making an investment. It’s important for investors to consider their individual circumstances before choosing a storage option. There are three common storage methods to consider:

• Home storage can offer full control over your assets but may carry a higher risk of theft and damage. This option may require you to invest in security measures and additional insurance, which can add to your costs.
• Bank deposit boxes can provide secure, off-site storage. However, access is limited to bank hours, and the contents may not always be fully insured.
• Professional depositories are facilities designed for high-level security and often offer full insurance, regular audits and climate control. They can be a good option for large investments or long-term storage.

If you want to include precious metals in your retirement strategy through a self-directed IRA, you’re required to store them with an IRS-approved bank or trustee. American Hartford Gold’s precious metals IRAs let you choose from several IRS-approved storage facilities that offer full insurance and regular audits, helping you rest easy knowing your assets are secure. The company also helps with rollovers and transfers from existing retirement accounts, making diversifying your portfolio with precious metals easier.

Are Precious Metals Right for You?

Deciding whether to invest in precious metals depends on your financial goals, risk tolerance and investment timeline. While they may not consistently deliver quick gains, precious metals can help provide long-term stability and potentially serve as a hedge against inflation and economic downturns.

To help you decide if precious metals are a good fit for your investment strategy, American Hartford Gold can help answer your questions and offer guidance. Remember, always do your research and carefully consider your options before making any decisions regarding your financial future.