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Which Precious Metals Are There?
In the physical sense, precious metals only include gold, silver, and copper. The electronic band structure of the metals is used to classify them as noble metals: Precious metals have completely filled d-bands, which contribute little to reactivity and not at all to conductivity. For example, this does not apply to platinum; Classically, however, the platinum metals platinum, osmium, iridium, ruthenium, rhodium, and palladium are also classed as noble metals. Even mercury is sometimes referred to as a precious metal; however, this is controversial since it is more reactive than the other precious metals in many ways.
Which precious metals are best suited for investment?
With the exception of mercury, all of the precious metals mentioned are suitable as investment metals. However, they offer different levels of development potential. Mercury is liquid at room temperature and also toxic, which is why it is not available in the typical bar and coin forms and is also not traded as an investment.
- The precious metals platinum, gold, silver and, to a lesser extent, copper are traded as investments.
- All precious metals are available in physical form as bars and coins (copper: bars and granules) and as securities (ETFs).
- Gold is primarily traded as an investment metal, other precious metals are needed and processed in many areas by technology and industry.
- The price development of gold as an investment metal is roughly countercyclical to the global economy, the price development of the remaining precious metals as industrial raw materials roughly reflects the economy.
Sell-Offs Spur Precious Metal Swap
Prices of precious metal commodities particularly gold, are rising in the wake of the week-long continuing massive stock sell offs. Financial analysts predict the rise will carry on since the Centers for Disease Control (CDC) has confirmed there are now cases of person-to-person transmission of the Covid-19 in the U.S.
Stock investors’ fears are not unfounded, since the CDC includes businesses in the calls for preparations.
Commercial establishments, hotels and other rented facilities must undertake necessary actions to keep their spaces sanitized and their employees properly trained about hygiene and emergency responses. Landlords who own multi-family housing facilities should seek assistance from rental homes property management professionals.
In facilities where diverse groups of people crowd, converge or live and come in close contact via shared spaces like toilets, bathrooms and elevators, the application of risk management procedures can help minimize, if not prevent the impact of the Covid-19 epidemic.
Financial market investors on the other hand, are taking the CDC newsfeed seriously. As a precautionary measure, they have turned to precious metals as a way of managing investment risks. Since some have not taken this route before, those planning to do so, are now seeking information on how to best invest in precious metal commodities like gold and silver.
Investing in Precious Metals
Precious metal investors have three options:
1. Buy the metal in its physical form, usually gold bars, or gold and silver coins;
2. Buy shares of an exchange-traded-fund or ETFs based on the price of the metal commodity
3. Enter into a futures contract that locks in the price of metal that an investor commits to buy in an agreed future time.
Although all three options may seem straightforward, each of those options have inherent characteristics that also make them risky.
Main Risks of Buying a Physical Commodity
The first of the concerns that must be considered before investing in physical gold or silver, is the trustworthiness of the dealer, especially if the purchase will be conducted through online trading facilities. A physical asset investor must be savvy enough to know and to ensure that he or she is buying genuine high-grade gold or silver.
Safekeeping is another issue, since they are physical assets in the form of bars or coins that can be stolen. To minimize risks, a separate insurance coverage for the physical asset is a necessity.
Be in the know that liquidity can be an issue, which means converting the precious metal into cash depends on the availability of buyers willing to buy the commodity, based on the price offered.
Risk of Investing on ETF Shares
In this type of investment, one does not get to own a physical asset, but only a share of a precious metal investment undertaken by a financial institution. The risk often associated with this type of investment is the “counterparty risk.” Such risk becomes a reality when the other party, which is the financial institution, defaults or fails to deliver the value promised as return on the shared ETF investment.
Risk of Investing in Future Contracts
Although this type of investment is less risky than the shared ETF investment. newbies should consider investing in gold and silver futures only if they are knowledgeable in hedging and leveraging fund investments. Mainly because, even a slight drop in the price of the precious metal, can impact their ability to sell the commodity at a price, higher than the amount they paid for via the futures contract.
Ways of Investing to Gold and Other Precious Metals
Belonging to the loop of being the most durable investments due to their rareness, precious metals value are really high. One of the best example is gold which is really valuable since time immemorial. Individuals who are trying to conserve their wealth find to put their money on this precious metal as the wise option. Gold is often categorized as inflation hedge making the opportunities for high returns during uncertainty and economic crisis. That’s why it is important to know how and when you should invest into gold.
Other precious metals like the silver and platinum, for example have other applications and unique features on the industrial aspect. This makes both metals more cyclical compared to gold. A very straightforward approach is the best way to invest in these metals via the stock market. This is a direct investment in which trading in the commodities market is a requirement which is much more complicated.
Buying the actual precious metals such as the gold silver, and platinum is the simplest method of direct investment, yet one possible problem might be the storage.
Investing in Precious Metals
Investing in precious metals is similar with investing in weed stocks. In weed industry, Stocktrades has ranked the top pot stocks in Canada. To do this in precious metals market, here are ways on how to invest successfully in those items.
Traditional Brokerage Accounts
Through this method, you need to determine which precious metals you are going to invest in to. Aside from gold, which is the most common option, there is the platinum, silver, and palladium. Keep in mind that each metals has unique factors that affect them in physical and psychological manners. Select the appropriate investment vehicle based on your situation.
ETF or the exchange-traded fund is best for the direct investment method in precious metals. Aside from that, mutual fund is also an investment method to choose from. However, it is not operated using ETFs. Fund’s bylaws are the ones controlling the mutual fund capital but not as strict as that of the ETF.
Commodity Futures Account
Understand the ways in trading through futures because this is far more different than the trading stocks. This investment method is generally an option than security. The contract for a futures account shows a trade that is ensured in the future. In this case, both the buyer and the seller agree on a specific date and price in advance.
How To Convert Your Precious Gold To Ready Cash
Gold continues to be seen as the most lucrative investment. Many people have gold in various forms at home and do not know how to sell it. An instruction. If you want to convert your precious gold to money, you have several options. On top of precious metal traders, there are also many online traders who are committed to buying gold.
Follow the steps below to get the best price out of your precious metals.
Find out what is the gold content of your items
The more precise the gold content of the item, the easier it is to get a good sales price. The value of gold bars and coins is generally straightforward and clear. However, when it comes to jewelry, checking the engravings are helpful. Typical gold parts are 333, 585 and 750, each of which roughly denotes the weight part in parts per thousand.
Use comparison portals
The first overview of current purchase prices for common bars and coins is available on price comparison portals. The items can be sold there without any major risk.
Purchase prices for old gold can also be found on comparison portals. For the query, however, the gold content in the piece of jewelry must be known. In addition, it can do no harm to obtain price information from the local dealer. A price of around 20 euros per gram can be obtained for 585 old gold.
Consult with the expert
If the gold content is not shown or the engraving has become illegible over the years, it becomes more difficult to determine exact gold content. Usually, the only thing left to do is go to a specialist to have the fine gold content of the valuable object determined. Depending on the effort involved, testing, certification and melting down can cost up to 15 percent of the gold value. This is not a little, but in many cases, it can hardly be avoided.
Selling online or at a trusted precious metal dealer?
Whether an online platform or established precious metal trader, where you should sell your gold depends on the item. Bars and coins, for example, have a fixed gold content and can, therefore, be sold relatively risk-free on the Internet. Trustworthy online buyers are often a member of the professional association of the German coin trade and offer a pick-up service for the goods. But be careful: the costs for this vary greatly from retailer to retailer. Therefore, gold owners should definitely keep an eye on the total price.
However, there are no standardized gold values for jewelry and medals. Therefore, gold sellers should run on two tracks and get prices online as well as from a larger resident precious metal trader. However, the local trader may apply discounts because he has to pass on the gold to melt it down.
Selling gold tax-free
In some instances, the sale of old gold does not even have to be taxed. The decisive factor is how long the item is going to be sold and that the sale does not exceed the exemption limit from private sale transactions. However, this is quickly reached with 600 euros. The proceeds from a flea market sale and a standard gold coin can be too much within a year to be tax-free.
If you want to save your gold and considering other alternatives to get cash, you want to consider quick cash loans from New Horizons. Quick loans are dependable to bridge the gap in your finances.
