• Home
  • About
  • Advertise
  • Contact
  • Policy
  • Guest Post
  • Archive

One Cent At A Time

A Personal finance blog to get rich

  • Email
  • Facebook
  • Pinterest
  • RSS
  • Twitter
  • Beautiful Life
  • Becoming Rich
  • Beginners Guide
  • Extra Income
  • Productivity
  • Saving Money

Guide to Preserving Wealth with Precious Metals

March 31, 2017 Leave a Comment

Share this:

  • Tweet
  • Email

Many investors understand that owning precious metals is not as glamorous as owning shares of Apple or Tesla. Yet, precious metals hold an important position in the portfolio of any investor that wants to hedge against economic uncertainty and volatility.

Guide to Preserving Wealth with Precious Metals

We are currently living in highly uncertain and volatile times as a new wave of populism and military adventurism sweeps over the geopolitical landscape. 31The article provides a no-frills straightforward guide on investing in precious metals.

The article provides a no-frills straightforward guide on investing in precious metals.

Go the traditional route with physical coins and bars

The traditional way to invest or trade precious metals is to buy physical coins and bars made out of precious metals of your choice. You could buy bars and coins made from pure gold, silver, palladium, platinum, and other precious metals.

The idea is to buy precious metals when they are undervalued or when their price is low. Ideally, you’ll sell them when the price appreciates and you can book price gains.

Some folks also argue that buying jewelry made from precious metals is a great way to have physical investments in precious metals.

However, I beg to differ because jewelry has sentimental value and you might not find someone that appreciates the jewelry as much as you do when you want to sell. There’s also the risk of taking an ego-trip to wear the jewelry and unwittingly attract undue attention that might lead to the theft of such investments.

There’s also the risk of taking an ego-trip to wear the jewelry and unwittingly attract undue attention that might lead to the theft of such investments.

If you want to protect yourself against economic uncertainty by owning precious metals, keep it simple and buy bars and coins. You can choose the self-storage method in which you keep the precious metals in a

You can choose the self-storage method in which you keep the precious metals in a safety deposit box or in a safe in a secure location. You can also choose to store your precious metal with brokers – for a fee paid monthly or annually.

It would also be in your best interest to ensure the precious metals against theft or other unforeseen circumstances that might take them out of your possession.

However, the cost of safekeeping in safety deposit boxes or the insurances premiums you pay might eat into your profit margin when you choose to sell and convert the precious metals into cash.

Go the modern route with paper securities

As seen above, investing in the physical form of precious metals raises liquidity challenges because you might find it difficult to buy and sell precious metals in order to profit from short-term price movements.

Physical forms of precious metals also have security and cost of investment challenges. However, investing the paper forms of precious metals could give you exposure to the stability that precious metals hold in uncertain economic times without the attendant risks.

You can invest in paper forms of precious metals by using derivatives such as options, futures, CFDs, binary options, ETFs, and ETNs among others.

Lucas Harris, an analyst, defines derivates as “a trading/investment contracts whose value is derived from an underlying asset to provide the holders with exposure to the investment without actually owning the asset.”

In essence, precious metals derivatives allow you to profit from price actions in the precious metals market without physically owning the precious metal.

One key advantage of trading precious metals with derivatives is that you are not limited to making a profit when the underlying precious metal books price gains alone.

You can book profits when precious metals are trading up, down, or sideways. In addition, derivatives allow you to trade precious metals as the fraction of the cost you’ll need to buy the physical amount of such assets.

LIKE THIS POST?
I agree to have my personal information transfered to MailChimp ( more information )
Join our community of 8000+ subscribers to increase your net worth and build wealth
We hate spam. Your email address will not be sold or shared with anyone else.

Share this:

  • Tweet
  • Email
The tool that changed the way I manage my personal finance - Personal Capital, The Best Free Personal Finance Tool

Want to start a WordPress blog now? The onecentatatime.com blog is hosted by Siteground Web Hosting. For only $3.95 a month, Siteground can help you set up and host your website/blog quickly and easily.

About the Blogger Hi I am SB, a personal finance enthusiast with a career in software development. I am an immigrant to the USA since 2005, after being born and brought up in India. This 40 something technocrat lives and breathes personal finance whenever he gets time from the day job, job as a husband and a dad

Some links on this page may be affiliate links, if you make a purchase following the links, I may earn a commission. Read affiliate disclosure here
« How To Streamline Productivity With The Right Collaboration Tools
What to Know about Roth IRA Conversion’s »

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Create your own blog in 20 minutes and $20

Personal Capital, a free tool to change your financial health today

I use and suggest Upstart, for your personal loan need

CreditKarma, a free tool to check your credit scorey

I use Coinbase, for my crypto investments

101 Cents at a Time

101 Ways to Earn Extra Money on the Side
201 Frugal and Perfect Birthday Gifts
101 Ways to Save Money Everyday
101 Ways to be Better and Successful at Work
101 Ways to Save Environment and Energy
101 Frugal and Romantic Anniversary Ideas
101 Low-Cost Men's Fashion Ideas
101 Personal Finance Tips
101 Ways to Reuse Household Stuff
101 Things to Do, When Nothing to Do
101 College Graduation Gift Ideas
100 Tips for Ecommerce Startup
101 Ways to Enjoy Indoor During Winter
101 Ways to Beat Procrastination

Popular Posts

Quick Cash - How to make $100 legally, in a day
Living well on less than $15,000 a Year
Top survey sites for side income
What to do when auto repair goes wrong
Where should I invest my money now?
20 Ways to be productive and happy at work
51 Ways to get out of debt
Be a better person in 15 days, 15 ways
Income ideas for retirees and senior citizens
51 side jobs for college students
Urgently need a large amount of money?
Should I buy or should I rent?
Best Personal loan providers
25 Ways to save environment
25 DIY car repairs to save money
How to decorate office cubicle
How to show your wife you care
50 Financial Rules for Success
51 Frugal weekend family activity ideas
Become Rich By Saving 1 Hour Of Daily Wage
How much do I need to save for retirement?
How to negotiate your salary

Follow us on FaceBook

About Author

SB

Blogger by choice and IT manager by profession. Finance is my passion and gardening is my greatest satisfaction. Born in India, settled in US, Husband and a father. I created this blog in 2011 with a vision to help others. Thanks for your patronage. More info on my "about" page.

View all posts


Subscribe

Join our community of 5000+ subscribers to increase net worth and build wealth

Advertisements

Personal Stories

How I got a new HP computer replaced
Was COVID circulating in USA in fall of 2019?
How my credit score went up 800+
Why I didn’t invest in Bitcoins
How I controlled impulses to buy things
Why this blog is named One Cent at a Time

Subscribe via Email

Site Disclaimer

Disclosure of Material Connection: Some of the links in this web site are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
Read full Affiliate disclosure


One Cent at a Time is published by SB. The opinions expressed herein by him are his own and not those of his employer or anyone else. All content on One Cent at a Time is for entertainment purposes only. By reading this blog, you agree that SB and/or One Cent at a Time is not responsible for any actions taken after reading this blog. For the full disclaimer, click here .

Major Media Mention

One Cent at a Time Media Appearances

Copyright © 2023 One Cent At A Time · Designed by Nuts and Bolts Media