In the midst of a dwindling economy and uncertain economic situations, financial security can largely be guaranteed by having an investment plan. An investment plan saves you from the mishap of a depleting economy and is a secured means of continuous income flow. Investments can be made on real estate and other landed assets, stocks and bonds, or in this case, on gold and other precious metals.
Over the years, precious metals have gained prominence and have proven to be a secured investment plan against inflation. Possessing strong value and durability characteristics, amongst other features, they have proven to be a sustainable source of income generation and a secured hedge against inflation. You can get information on this investment plan from Metal Res and other trusted Gold IRA companies.
Investing In Precious Metal
An interesting attribute of this investment is its diversified investment methods. In this article, we shall learn about the various methods you can choose from in your precious metal investment plan. They include the following:
Gold Futures
Gold being a valued commodity can be traded in advance at an agreed date in the future market. A number of exchange companies such as Commodity Exchange also referred to as (COMEX) allows precious metal to be invested in at future dates. This method can also be employed at any financial institution or broker’s market so long as they have an agreed futures exchange transactional policy.
Pros
- It could serve as a hedge against inflation; protection for your assets.
- It allows you to transact in treasures and precious metals without actually possessing gold.
- It allows gold to be traded in smaller units.
Cons
- You have no possession of physical gold.
- Its terms of contract, they are very limited.
- Trading based on leverage has a lot of risks.
- There is no guarantee of profits that will be made on future exchange plans.
CFDs
These are contracts which have underlying assets. This implies that transactions are made on the assets but they aren’t actually purchased. Various exchange companies offer different CFDs as gold commodities. There are a number of online vendors who deal in this type of transactions; moreover entry into these platforms is generally cheap.
Pros of CFDs
- Physical assets aren’t required to trade.
- There is no need for a storage system for acquired assets.
- There are zero custodian fees.
- These platforms give you access to global markets for trading of precious metals.
- It enables you to trade with leverage.
Cons of CFDs
- High margin requirements are expected from traders.
- There are inherent risks involved in trading with leverages. This makes it unbefitting for inexperienced investors.
Refer to this article for more information on CFDs.
Investment in Gold Coins
Investing in physical metal is a simple process with added advantages. These coins also referred to as face value are usually the denomination of a nation’s currency. Because of its size, they are much more affordable than other forms of physical assets. They can be bought in its physical form or online. In its physical form, it can be given to a metal smelter who pays cash for it.
Pros
- They can be bought in its physical form and allows you to have physical possession of your asset.
- It has greater flexibility and liquidity attributes.
- This form of precious metal does not have an expiration date and can be transferred from one generation to the next.
- It is convenient for small investors.
Cons
- Loses might be experienced due to currency fluctuation.
- Purchasing coins can be delayed.
Gold Bullions
Gold bullions are special metals that come in the forms of bars or coins. They are a good way of investing in metal and enable capitalization of profits by investors. Investors buy bullions with the aim of selling them at a much higher price. These assets can be bought from a number of financial institutions. However, be aware of the differences in the price, commissions and offers depending on the bank it is purchased from.
Pros
- They are suitable for large and small vendors and investors.
- They are obtained in its physical form and allow you to have actual possession of physical assets.
- It can be sold or swapped anytime.
- They can be used as collateral for the procurement of loans.
- They are highly valuable and can be passed on to another.
- They are durable.
Cons
- They require a place of storage to store them.
- They are at the owner’s risk.
- There could be a risk of purchasing counterfeit products.
Jewelry
Gold jewelries are regarded as highly valuable and worth-having. They are beautiful, durable and are more preferred than copper and silver. They can be obtained from mining companies, online vendors and physical dealers who offer such services.
Pros
- They are easily tradable
- You have physical possession of your assets.
- They can be easily purchased.
- They are portable and durable.
Cons
- There is a risk of acquiring counterfeit products.
- Protection of assets lies in the hands of the owner.
Gold-Miners Stock
These shares add stocks available for investment in the form of gold. They are a representation of companies that process and extract gold and other precious metals. As with any stock market, the value inherent in these shares are affected by market pressures. Generally, an increase in the price of gold equals an increase in the profits of these companies.
Pros
- There is a high return rate.
- It is a long-term investment plan.
- Shareholders receive profits in the form of dividends made from these companies.
Cons
- There is high risk involved.
- Fees come in annually.
Click on https://tradersunion.com/ for more information on the various ways of investing in precious metals.
Conclusion
Gold investment is a highly lucrative security plan. There are various forms, methods and institutions to choose from so take the bold step today to secure your future with gold. You can make further research for more information on this subject.
