Everyone knows that the key to building a healthy nest egg for retirement is to diversify your investments. Spreading your money across multiple investments gives you a greater chance of bringing in income, even when one of your investments isn’t performing. One of the most popular investments to add to your portfolio is precious metals.
Before you start your search for “precious metals near me,” it’s important for you to do your research on them. Read on to learn some of the most common precious metals investing myths!
You Should Go All-In on Precious Metals
It’s tempting to dump a ton of money into a precious metal when it’s priced at rock bottom. Even though it’s a good deal, it’s not necessarily a good idea. It’s important to remember that your portfolio needs diversity, not a significant precious metals investment.
Aim to keep your precious metals investments at 10 percent of your total investment portfolio. You can, however, attempt to buy and resell to turn a quick profit, but you have to pay careful attention to the market and pay a commission fee.
The Value of Precious Metals Always Goes Up
Many people invest in precious metals thinking that it’s a stable investment that’ll only go up with time. Those investors are in for a rude wake-up call.
The truth is that precious metals are just as volatile as other investments when it comes to value. For this reason, you should never use precious metals as a way to make money quickly. In order for your investment to pay off, you really need to hold onto them for at least 10 or 15 years.
Want to learn a little bit more about how investments in precious metals have changed throughout history? Click here to brush up on your precious metals history.
Jewelry Is a Good Way to Invest in Precious Metals
People love fine jewelry, but buying fine jewelry is not the same thing as investing in precious metals. Multiple factors go into the cost of a piece of jewelry, including the labor to produce it, the brand name, and any precious stones. As a result, you end up paying two or three times more for a piece of jewelry than you would for pure metal.
If you try to sell the jewelry at a pawn shop, you’ll probably be unhappy with what you’re offered. Most people are only able to get about half of their money back. Just stick to buying pure metal if you really want to make an investment.
Get Informed Before Searching for “Precious Metals Near Me”
Investing in precious metals seems as simple as opening Google and typing “precious metals near me” into the search form. If you want to be smart about your investments, though, then it’s important that you thoroughly research the metals you want to buy before handing over your hard-earned cash. You’ll be happy you took that extra step!
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