Are you getting suggestions on investing in precious metals left and right from the people you know? If yes, then it must mean that they’ve done that already. You could, however, also be the first one among your group of acquaintances and friends to consider this option. Whatever the case, you’ll definitely be wondering one thing. Is this really worth doing?
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Figuring out if it’s worth doing something is the first stage in every investing process, including the process involving precious metals. Simply diving into this without knowing if you’re doing the right thing will make you always doubt your decision, no matter how many times it will prove to be a good one. Doubts can lead to making some wrong moves, which is why you should shed them, by getting all of your facts straight and finally figuring out if precious metals are actually worth investing in. Only after you’ve learned that should you proceed to figuring out how to do it, i.e. how to actually invest.
Are Precious Metals Really Worth Investing In?
Precious metals are rare and they have great economic value. That fact alone should make them worth your while. Their investment properties make them a good store of value, which is precisely why investors are adding them to their portfolios. They can safeguard people’s wealth and make the entire portfolio much more stable than it would be if it were filled with only stocks and bonds the value of which is highly susceptible to market changes.
Platinum, palladium, gold, silver… they all behave differently than stocks and bonds, meaning that they won’t be that much affected by those changes on the market. Surely, some fluctuations in their value are still to be expected, but those are usually unnoticeable and small, not even worth dwelling upon. And, apart from that, when inflation harms those other assets, you can expect precious metals to behave in a completely different way, i.e. to increase in value whenever the living costs increase, which makes them the perfect inflation hedge assets.
Converting these assets to cash is also extremely easy, because the demand for them is always high. In other words, they are pretty liquid and if you add them to your portfolio, you won’t have to worry about not being able to sell them at a certain point in time, should you choose to do so. Having your money stuck in assets that bring no return and that cannot be sold is definitely not favorable, and that’s something you won’t need to be concerned about with precious metals. This page should explain further why investing in them is always a good idea.
Although it is always a good idea, timing can actually play a role here. You want to invest when their prices is at the lowest point, and statistical data show that there are specific months you should be on alert during, if planning to buy these assets. January, March, April, June and July are often seen as the best months for buying precious metals, due to those prices. Since these are the perfect diversification assets, since they are highly valuable, stable and liquid, we can easily conclude that investing in them is definitely worth it. So, if thinking of doing it, you may want to set things in motion, and act fast, so as to grab those lower prices.
How To Do It?
How can you set things in motion, though? Well, if your plan is to save these assets for your retirement, then the first thing to do is set up your very own IRA account that allows for these types of alternative investments. Diversifying your retirement portfolio is definitely a good move, but you need to know what type of an account actually allows for that, because not all of them do. Your 401k won’t offer you the opportunity, and neither will the traditional IRA. What you need is a specific account type called a SDIRA, and also known as a gold IRA, or a precious metals IRA.
If the account set up process seems a bit difficult, and it easily might, you may want to take this important step first. Find the precious metals company that you’ll work with during the whole process. This is also the most significant thing to do in the entire investing procedure, because you won’t be able to take any investment moves if you don’t have one of these companies on your side. Since it’s the most important thing to do, let’s tell you more on how to actually do it.
While randomly selecting one of the firms is easy, it’s definitely not right. Finding the best company requires you to go into great details, gather information about the firms, read reviews about them and even interview them before choosing. The review part is crucial of course, as those give you all the info you need on the firms you’re researching. The American Hartford review, for instance, will let you know if the firm is legit, which services it offers, what the minimum investment fees are, and basically everything else that’ll help you decide if you want to work with it. All of that will be of great use when the time comes to choose one firm over all the others.
Things will go much easier from there, because the company you’ve chosen will help you set up the SDIRA I’ve mentioned previously, as well as fund it properly before making any investment moves. Rollovers can sometimes be done during the funding stage, and those consist of transferring funds from your existing, traditional, IRA, or your 401k for that matter, to this new account, without having to pay any penalties along the way, and those firms you’ll choose will also help you complete the rollover. Once everything is properly funded, you’ll just have to start making your investment decisions, and it would be wise to take advice from those professionals that are now your partners, as they could tell you not only when the time is right to buy, but also which specific assets are best to buy.