Buying precious metals has never been more popular. Gold and silver have a habit of holding their value even in the most troubled and uncertain economy. As a result, precious metals are recognized as a sound investment that can give you a good return on your money. However, given the volatility driven by the pandemic, if you’re thinking of buying precious metals in 2022, there are a few key things you must consider. Anthony Allen Anderson, a senior partner of industry-leading company GSI Exchange, shares a five-point guide for investing in precious metals in this critical year.
Know What Exactly Are Precious Metals?
Everyone is familiar with the term precious metals, but not many know that precious metals are different from stocks, bonds, and other types of investments because they are commodities. Precious metals aren’t tied to the stock market and thus make them a perfect investment when economic uncertainty strikes. Likewise, when the currency weakens, the value of precious metals tends to stay stable and thus makes them a perfect asset in your portfolio.
Is 2022 The Right Year To Invest In Precious Metals?
Let’s be honest, the last two years have been a rollercoaster ride, and many people are cautious about investing in any market due to surging inflation. Yet, as per experts at GSI Exchange, the prices of precious metals could potentially soar alongside everything else. With the rise of luxury spending and the 100-year Dow/Gold ratio near all-time highs, this could be a smart time to invest. And lest we forget, gold has always been notoriously resistant to inflation in the past.
What Precious Metals Should I Invest In?
As a rule of thumb, gold, silver, platinum, palladium, and copper are the most popular precious metals to invest in. Each has its own price, demand, and volatility and offers the potential investor something unique. “Decide what you want from your investment, how long you plan on investing, and how much you want to invest before you pick the precious metal that is right for you,” explains Anderson.
How To Invest In Precious Metals
There are a diverse number of ways of investing in precious metals. As per Anthony Allen Anderson, “Bullion, exchange-traded funds, futures and options all have their benefits, and it’s always wise to talk to an expert to discover the right option for you.”
Can Anyone Invest In Precious Metals?
Many people make the mistake of believing that only millionaires can invest in precious metals. That couldn’t be further from the truth. Anthony shares, “anyone considering investing in the market must know that you don’t have to be rich, to begin with, but the chances are, if you’re sensible and make the right investments, you’ll likely end up well off”.