Watch TV on Computer

Monday, October 3, 2011

Tips and Tricks to Invest in Precious Metals

Gold has reached at its peak prices and due to this out metals are gaining popularity such as Platinum and palladium.Listed below are the tips and tricks that will tell you how to invest in precious metals

Lesser-known precious metals, such as palladium and platinum, may be just the ticket. They are rare metals that have soared in value the past few years. They are also the new metals on the block compared to ancient gold and silver. They began being refined in the 1800s.
Platinum and palladium get an extra pop when gold soars, though. All precious metals move together, says David Morgan, founder of Silver-Investor.com. Platinum, which follows the price of gold, can even sell at a premium to its fellow precious metal.
These metals, increasingly coveted for high-tech uses such as catalytic converters in cars, can help diversify your portfolio and hedge against financial uncertainty.
Before investing in platinum or palladium, ground your portfolio by investing in gold and silver first, Morgan says. "Everyone needs gold and silver," he says."Platinum and palladium aren't for everyone because markets are smaller. They're nicer to have rather than need."
Why? Both metals' prices can be highly volatile. They're bought and sold via precious metals brokers.
Hold them for at least three years, says Paul Mladjenovic, author of "Precious Metals Investing for Dummies." Platinum and palladium should represent no more than 5% of your investment portfolio compared to 10% for gold and silver. That's because markets for these metals are smaller, and trading is more limited than for gold and silver.
Don't let swan-diving metal prices drive your investment strategy. "Speak to a financial adviser about setting a target price when selling," he says.

Platinum Regains its Luster

Platinum is 10 times rarer than gold, and the tight supply can mean wildly fluctuating prices. For example, platinum hit a high of $2,252 per ounce in March 2008 only to plummet to $794 in October that year. Supply issues in South Africa, where most of the metal is mined, were to blame, Mladjenovic says. "As soon as the problem was fixed, the metal's price dropped," he says.
The metal hasn't again reached that all-time high.
The best way to invest is to buy bullion coins, or coins minted but not used in day-to-day transactions. "You're less likely to worry about the ups and downs in the market," Morgan says. "So you'll hold onto the coins."
U.S. Mint-issued American Eagle platinum coins are one possibility. They're easily bought at banks, brokerage firms or directly from the U.S. Mint. They also can be purchased at major coin dealers such as Monex Precious Metals in Newport Beach, Calif. Go to the U.S. Mint website, USmint.gov, for a list of authorized dealers.
But a less liquid market than gold can mean they're harder to cash in. "Before you buy bullion coins, ask about the dealer's buyback policy," Mladjenovic says.
This shiny metal, which mimics silver, sold for almost the same price as gold in late September -- about $1,571 per ounce for platinum and about $1,649 per ounce for gold.

12 comments:

  1. This is my first time i visit here. I found so many entertaining stuff in your blog, especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here! Keep up the good work..Livingston County Michigan

    ReplyDelete
  2. Awesome work.Just wanted to drop a comment and say I am new to your blog and really like what I am reading.Thanks for the share.... small business coach

    ReplyDelete
  3. Very informative post for me as I am always looking for new content that can help me and my knowledge grow better.
    Gr8…Keep it up!!!! clad metals

    ReplyDelete
  4. Great article …Thanks for your great information, the contents are quiet interesting. I will be waiting for your next post.

    ReplyDelete
  5. Interesting. Your instructions look clear but I'm not very good at this so I hope this will work well for me. Thanks for the tips! :)

    ReplyDelete
  6. I guess I am not the only one having all the enjoyment here! Keep up the good work..

    ReplyDelete
  7. I would like to say that this post is awesome, nice written and include almost all important information. I’d like to see more posts like this.

    ReplyDelete
  8. These tips proved very useful for me and for this, I really want to mention thanks for sharing it with us.

    ReplyDelete
  9. What an Awesome post. Just wanted to drop a comment and say I am new to your blog and really like what I am reading. Thanks for the share.

    ReplyDelete
  10. Very interesting blog. A lot of blogs I see these days don't really provide anything that attract others, but I'm most definitely interested in this one. Just thought that I would post and let you know.

    ReplyDelete
  11. Very interesting blog. A lot of blogs I see these days don't really provide anything that attract others, but I'm most definitely interested in this one. Just thought that I would post and let you know.

    ReplyDelete

Related Posts Plugin for WordPress, Blogger...

Infolinks In Text Ads