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10 Investment Strategies for Precious Metals
Investment Ideas for New and Experienced Investors
Investing in physical precious metals can be a smart way to diversify your portfolio and protect against inflation. With gold priced over $2000 per Troy ounce and silver just under $25 per Troy ounce as of April 2023, now may be a good time to consider investing in physical precious metals. Here are 10 investment strategies to consider:
Buy and hold: One of the simplest strategies is to buy physical precious metals and hold them for the long term. This approach can provide a hedge against inflation and provide a sense of security in times of economic uncertainty.
Dollar-cost averaging: As mentioned in a previous article, this strategy involves investing a fixed amount of money at regular intervals, regardless of the current market price. This approach can help to smooth out the impact of market fluctuations and potentially result in a lower average cost per unit over time.
Value averaging: This strategy involves investing more money when prices are low and less money when prices are high. This approach can help investors to maximize their returns over time.
Rebalancing: Rebalancing involves periodically selling some of your precious metals holdings and buying others to maintain a desired allocation. This approach can help to reduce risk and ensure that your portfolio remains diversified.
Mining stocks: Investing in mining stocks can provide exposure to the precious metals market without actually owning physical metals. This approach can provide potential for higher returns, but also carries higher risk.
Royalty and streaming companies: These companies provide financing to mining companies in exchange for a portion of their future production. Investing in royalty and streaming companies can provide exposure to the precious metals market with lower risk than investing in mining stocks.
ETFs: Exchange-traded funds (ETFs) are a popular way to invest in precious metals without owning physical metals. These funds typically hold physical metals or derivatives and can provide easy diversification and liquidity.
Mutual funds: Mutual funds can provide exposure to the precious metals market through a diversified portfolio of mining stocks and other assets. This approach can provide potential for higher returns, but also carries higher risk.
Options trading: Investing in options on precious metals can provide potential for higher returns, but also carries higher risk. This approach should only be undertaken by experienced investors.
Storage options: Finally, investors should consider the storage options for their physical precious metals. Storage options range from storing the metals at home to using a secure storage facility. Each option has its own advantages and disadvantages, and investors should carefully consider their options before making a decision.
Investing in physical precious metals can provide a range of benefits for investors looking to diversify their portfolio and protect against inflation. With gold and silver priced as they are, now may be a good time to consider one or more of these investment strategies. By carefully considering your options and working with a trusted advisor, you can build a portfolio that meets your financial goals and provides peace of mind.
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Disclaimer: Investing is a personal choice. You make your own decisions on when and how to invest. You can make money and you can lose money investing. The statements made on this website are opinions and past performance is no indication of future performance or returns. Precious metals, like all investments, carry risk. Gold, silver and platinum coins and bars may appreciate, depreciate or stay the same depending on a variety of factors. WJ Gold PMI cannot guarantee, and makes no representation that any metals purchased will appreciate at all or appreciate sufficiently to make customers a profit. The decision to purchase or sell precious metals, and which precious metals to purchase or sell are the customer's decision alone, and purchases and sales should be made subject to the customer's own research, prudence and judgement. WJ Gold PMI does not provide investment, legal, retirement planning, or tax advice. Individuals should consult with their investment, legal or tax professionals for such services.