Today, around 145 million Americans (or 56% of the population) own stocks. It’s wise to put your money to work for you passively, but expanding your portfolio makes it stronger. This is why you see people investing in cryptocurrencies as well.
But you should also consider investing in something more old-school: precious metals. Before you discount this idea, you should know there are other ways to invest than to have physical bars of say, gold.
Interested in hearing more? Then read on for 4 tips for investing in precious metals in 2022!
1. Know Which Precious Metals to Put Your Money In
Not all precious metals are created the same, which means the perfect combination will be different for everyone. The most popular one is, of course, gold, but other good bets include silver, platinum, and palladium.
For beginners, gold and silver are best to start off with. Then, as you familiarize yourself with the process, you can expand your investment in precious metals.
2. Consider Commodity Exchange-Traded Funds
Commodity exchange-traded funds (ETFs) are a great way to invest in precious metals without having to store physical bullion. This also means you don’t have to receive a delivery of coins or bars.
This can be a quick and easy way to invest in precious metals. However, if part of the fun for you is gazing upon your goods, then this might not be the optimal choice.
3. Look Into a Precious Metals IRA
You might already be familiar with a traditional IRA (individual retirement account). But did you know there are precious metals IRAs too?
For example, with a gold IRA, you can hold physical coins and bullion if you’d like. But you can also hold precious metals-related securities in your portfolio if you’d like to eliminate the physical side of things.
Open a precious metals IRA and you’ll have good security in your golden years. What’s great is, it’s a safe investment and not tied to your employer at all!
4. Be Patient When Trading
When you invest in precious metals, seeing the prices rise and fall can be nervewracking. It may make you want to jump the gun and sell when it seems like prices are up, but patience is key. Panic selling is never a good idea.
Know that precious metals can be volatile. When the market takes a turn for the worse, don’t be all doom and gloom. The fact is, it’ll go into an upswing again, so just wait and it’ll be worth it.
Expect for it to take a few years for you to see a significant gain on your investment.
Be Smart When Investing in Precious Metals
Investing in precious metals can be an excellent way to diversify your portfolio and see your money grow. And by following our tips and spending your money wisely, you’ll have a nice nest egg by the time you retire.
Need more help with financial matters like retirement planning? Then read more of our articles on our blog page.