3 Common Mistakes to Avoid When Investing in Precious Metals

Investing in physical precious metals can have many potential benefits. These possible benefits may include added portfolio diversification, acting as a hedge against inflation, protection of purchasing power and more.

While we believe that investing in hard, physical assets such as gold and silver is one of the best investments you can make, there are a few key issues to keep in mind when building a significant holding of precious metals. Here we will outline three common mistakes made by those new to precious metals and how to avoid making them.

Mistake #1

Trying to “time” the market: There are many reasons to consider adding gold or silver to your portfolio. While price appreciation is one reason, it is by no means the only reason. Attempting to time the market and buy gold and silver at a better price may sound good in theory, but that’s what it really becomes – just theory. Very few people can time the market successfully and besides, you are buying gold or silver for their long-term potential benefits. Forget trying to buy low and sell high. Just buy. And keep buying.

Mistake #2:

Having unrealistic expectations: While the price of gold, silver, and other precious metals may appreciate significantly – and sometimes rises quickly – it is important to see the forest through the trees. Any price appreciation in these metals should be considered an added bonus. Your primary focus when buying gold or silver should be on their potential benefits as a hedge against a number of economic and geopolitical issues such as currency depreciation, inflation, or even deflation. While there is nothing to say that these metals won’t climb significantly in price (we believe they will over time), they should not be bought strictly in the hopes of rapid price appreciation.

Mistake #3

Not using your IRA account: Physical precious metals such as gold and silver can be bought and held within your IRA account. This can be one of the easiest ways to begin building a significant holding of physical precious metals. Not only might you be able to purchase these metals on a tax-deferred basis, but your metals must also be stored within an approved depository. These depositories are some of the most secure places on earth, so you can sleep well at night assured that your gold and silver are safe.

Physical precious metals may offer many potential benefits, and if you don’t currently have an allocation in these metals, now may be the time to consider your options.

An Advantage Gold account executive can walk you through the process of purchasing physical gold and silver, and can assist you in making regular allocations in these precious metals. If you have an IRA account, we will show you exactly how to begin acquiring precious metals in it, and if you don’t have one we can assist you in setting up a new precious metals IRA.

Begin investing in tangible, hard assets such as gold and silver, and let us help you do it the right way. Explore your options and call us today at 1-800-341-8584.