You just might agree that precious metals are usually a sight to behold. This is whether it is gold, silver, bronze, and what have you. It is for that reason that some folks have become addicted to precious metal jewellery, so that they couldn’t be caught napping. Precious metals are metallic chemicals that have high economic value.
For instance; Platinum, Gold and Silver have continued to attract investors all over the world, whilst the industry have continued to encounter a boom. A lot of investors are cashing in big returns from buying and selling precious metals; and you too are also able to make money buying precious metals and selling at a higher price to make more returns.
Do have at the back of your mind that you are to pay Capital gain income tax from the profits you made from selling your precious metals. Therefore, this article proposes to serve as a mini guide on how to start a precious metal investment. However, before delving into how this can be pulled off, let us quickly see a few advantages of investing in precious metals.
Some merits include; precious metals not being affected by inflation. Others include; precious metals having a universal value, the ability to give a lot of investment options, the ability to always increase in value, and the ability to be easily liquidated. Having seen this, you would agree that this is one investment that promises goodies. So, let us see the various ways to invest in precious metals.
Investing In Precious Metal – Tools, Tips & Strategies
1. Carry out an Extensive Research
Before you start a precious metal investment, you have to take time to research on precious metal market and how it works. Read up as much materials as you can get hold of on how precious metal is traded. There are a lot of eBooks on the internet that will put you through on how to trade on precious metal.
Some major information you are to find out include; which precious metals are the most valuable at the moment; how much is the least investment you need to get started; when is the best time to buy and sell, and on which form is the metal more valuable, is it in bars, coins and through and online broker.
A Stockbroker is a professional that helps in the buying and selling of stocks and other securities which includes precious metals. Most times, the Stockbrokers have inside information on the direction precious metals might take in the nearest future due to the fact that they are always up to date with happenings in the market. Also, speculations from market makers and what have you. Therefore, you need to get the services of a reputable Stockbroker to advise you on when best to invest in each precious metals and when to sell.
3. Create an Account with a Broker
Unless your wish is to buy physical metal bars and coins, you would need to trade online through a reputable broker. A broker provides a platform where people can buy and sell precious metals, stocks and securities without need for a large capital to buy directly from the financial market.
You have to find a reputable broker and create an account with on his platform. There are many fake brokers out there, so it may be hard to find genuine ones. Your stockbroker can help you choose and you can also read reviews about broker platforms to help you make a better choice. After you choose a broker, do note that you need to fund your account with the amount you wish to invest on trading precious metals.
4. Buy When the Price Is Low
You have to monitor the action of the metal you wish to invest in, as well as buy once you notice that the price is low. Also, if there is a speculation that the value and price of the metal may go higher in the nearest future. Your stockbroker can help you, by providing you with trading tips to help you make the right choice of investment.
5. Build Up Your Portfolio
One of the advantages of trading precious metals as mentioned earlier is that there are other precious metals you could invest in to build your portfolio. Be wise and use this opportunity to increase your potential Returns on Investments (ROI) by investing in other promising metals. For instance; you can invest in gold and also in Platinum at the same time, as long as they both have the potential to appreciate in the near future.
6. Know When to Trade
As the price of the metals you invested on appreciates, you have a choice to sell them and buy other metals. Remember to pay your Capital Gain investment tax, so as not to get in the wrong side of the law; though there are ways you can avoid payment of capital income tax on your investments.
7. Store Your Physical Meta
If you chose to purchase physical metals; like gold bar, you have got to make a proper arrangement to store them in a safe place. Some people open volt accounts for their precious metals in banks where they are keep in safety until there is need to sell them. You may be required to pay some fee by the bank for using their volts. As long as you cover the cost and still make profit once you sale the metals, it is a better option.
In conclusion, precious metal is one investment where you can make an avalanche of profit. You can make and even expect to make a very high Return on Investment (ROI) within a short or extended period of time.