Currency comes in many forms, and one of the oldest forms is coins made from precious metal. The first known form of currency made from precious metal was the Mesopotamian shekel, which is over 2600 years old, so investing in precious metals has been around for quite a while.
Precious metals proved to have quite a bit of staying power throughout history. The United States didn’t permanently get off the gold standard until 1971.
Even with the standard gone, precious metals have retained their value and increased it.
Gold and other precious metals are rarer than cash, so their value is more stable. For this reason, many are investing in precious metals. We’ll offer some advice on how to do that in this article.
1. Research Sellers
When choosing dealers to buy precious metals from, it’s important to find someone reputable. Fraud is a big issue in the world of precious metal trading.
Some may claim that what they’re selling is far more valuable than it really is or that it’s guaranteed to increase in value. The truth is that nothing is guaranteed to increase in value. Investing doesn’t work that way.
2. Check Current Prices
While precious metals don’t inflate and deflate quite as much as most currencies, they do shift in price quite often. It’s important to do market research before investing.
The price of precious metals is on the rise at the moment, so investing in gold bars, silver coins, or anything made of platinum or palladium is a good idea.
You’re better off choosing and managing investments based on long-term trends rather than recent changes. If the value of something has been slowly rising for several months, a day or two of decline could be a fluke.
3. Don’t Give Out Personal Information
Any seller of any product that asks for details like social security numbers, bank account numbers, or credit card numbers shouldn’t be trusted. Official estimates claim that about 9 million Americans per year are victims of identity theft. That works out to 3% of the population.
We encourage you to monitor your bank account carefully. If you ever do find strange activity on your account, call your bank immediately. They will close the account and monitor if anybody tries to use the account afterward.
4. Try to Get Prompt Confirmation of Purchase
We’ve discussed how the precious metals market changes quite a bit and that you should research the markets. You also need to get your purchase or proof of purchase in hand as soon as possible.
For instance, assume you buy from a dishonest dealer. They sell you real precious metal at a reasonable price, but the sale is on good faith, and they can’t get it to you for a week. By the time the product is sent, the value has increased, and the dealer insists on charging you the extra cash.
With no proof that you bought in before the value increased, you may be stuck paying a higher amount than intended.
Investing in Precious Metals: A Guide
Investing in precious metals can be a great way to earn money. We’ve offered some advice on how to do so in this article, but there’s always more to learn.
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