Gold, silver and platinum have been recognized as valuable metals, and have been coveted for a long time. Even today, precious metals have their place in a savvy investor’s portfolio.
There are many ways to buy into precious metals like gold, silver, and platinum, and a host of good reasons why you should give in to the treasure hunt.
Filling Up Your Treasure Chest
In ALPHA CAPITAL we have several options available to invest in precious metals.
- Commodity ETFs: Exchange-traded funds exist for all three precious metals.
- Common stocks and mutual funds: Shares of precious metals miners are leveraged to price movements in the precious metals.
- ETIM Products: Electronic Intraday Trading without compromise the principal asset.
- Futures and options: The futures and options markets offer liquidity and leverage to investors who want to make big bets on metals.
Precious Metals Benefits:
Precious metals have no credit risk, maintain their global purchasing power over the long-term in the face of inflation or currency devaluation, and aren’t very tightly correlated with stocks, bonds, or real estate.
Precious Metals Risks:
Every investment comes with its own set of risks. Although they may come with a certain degree of security, there is always some risk that comes with investing in precious metals. Prices for metals can drop during times of economic certainty, putting a damper for people who like to invest heavily in the precious metals market. Selling may be a challenge during times of economic volatility, as prices tend to shoot up. Finding a buyer for physical metals may be difficult.
Another risk to precious metals prices includes the issue of supply. When demand shoots up, the existing supply may begin to deplete. And that means producers will have to bring more of each metal into the market. If there is a short supply of mineable metals, that could put pressure on prices.