How do I invest in precious metals like Gold, Silver or Platinum?

how to invest precious metals | pfaasia.com

Today we turn to topic of “How to invest precious metals” i.e. Gold, Silver and Platinum.

In general, there are 5 ways for a investor to buy or sell the precious metals.

 1) Buy physical precious metals

 Invest in physical items like gold, silver or platinum bars or coins. At the time of writing, 

  Price of 1 oz of gold bar/ coins = USD 1,740 ; 1 oz of silver bar/coins = USD 34 ;

  1 oz of platinum bar / coin = USD 1,600.

 2) Open precious metals investment account at banking institutions

Nowadays, an investor can choose to profit from the price movement by opening either gold or silver investment account, which is more common in Asia through banks.

3) Buy precious metals exchange traded fund(ETF) 

Exchange traded fund is like a mutual fund, but it is linked to the price movement of the    precious metals like gold. It can be buy or sell at anytime.

 See Precious metals exchange traded fund list

4) Buy shares/ stocks of mining companies

To reap returns of the price movement of precious metals, some choose to become  shareholder of mining company. A well known investor like Robert T.Kiyosaki owns his  gold mining company. See Precious metals mining companies list

5) Buy into precious metals index or future contracts

Future contracts are deals to trade precious metals decided now, but with the settlement in the future, usually 3 months ahead.  

Just like any investment, investors in precious metals like Gold or Silver are presented with risk as well. In terms of risk-reward, 1st & 2nd ways for the lower risk appetite investor, 3rd & 4th are for the medium risk appetite investor while 5th way are for the investors who can stomach high risk

However, investors should be cautioned of the “marketing schemes” offered by precious metals investment companies especially those which promised unbelievably high investment gain. 

5 questions to ask prior to investing in precious metals :

1) What is the assets size or the company / institution ?

2) Is the institution /company licensed to do this investment ?

3) Do I have physical possession of the precious metal I invested ? 

4) How much return  I can get, and what is my risk ?

5) What are the costs incurred precious metal investment ?

Comments
  • At this time gold and silver market is down day per day so this time is good for gold and silver investment.

  • Thank you for advising us that it is important for us to invest in physical precious metals as the value is higher and easier to manage. The other day my friend was asking about Precious Metals Mining Investment. I will advise him to look into physical investments rather than digital.

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