Investors have to take many factors into account as they build their portfolios, but the most important thing to consider is diversity. Diversifying a portfolio reduces risk by spreading the investment out through different geographical regions, types of markets, and temporal terms. The most important aspect of this diversification process is to make sure that gold and silver buying makes up at least ten percent of an investor’s wealth portfolio. Gold has been the chosen method for centuries to store value and hedge against inflation and economic uncertainty, and now, more than ever, gold should be the cornerstone of a well thought out portfolio.
During the first six months or so of the 2013 year, many of the people who had previously railed against investing in gold said that it was finally proven that the gold bubble had burst. Some of them were even predicting that the spot price of gold per troy ounce could drop down to $400 to $700 per ounce. They were of the opinion that gold had been overvalued for a long time, and was finally going to correct downward to the appropriate price.
However, that hasn’t been the case. Since the beginning of July, gold has been on a rise from its floor of about $1,200 per ounce to more than $1,300 per ounce. Everybody who stuck buy and held their confidence in investing in gold is enjoying the ride back up. However, the question that must be asked is what those investors who sold their positions should do now.
Although gold is usually the most popular precious metal to invest in, platinum is considered to be more valuable. In fact, platinum is rare and hard to mine making it around twice the price of gold. It is only mined in South Africa and Russia but is incredibly useful, a combination of factors that keeps its price high. Because of this, people are increasingly choosing to invest in platinum when making their precious metals investments. Once a person has decided to invest in platinum, however, the decision is not done. As with other precious metals, there are multiple ways to make this investment.
Most experts recommend that someone who is new to the platinum market start their investment with a platinum stock. Instead of investing in a physical piece of platinum, this is investing in a company that works with the metal, usually in extracting it. Experts suggest this method of starting out with precious metals investments because other forms of platinum investments can be difficult but this is as simple as investing in any other stock. They will still produce good results, however, as they are related to the prices of platinum and spot platinum. Simply choosing to invest in platinum stocks is not enough as there are many mining companies including Anglo Platinum (AGPPY), Impala Platinum (JSE: IPA) and Stillwater Mining Company (SWC). It is important to do research before selecting a company to invest in.
Learning about the rare coin market and numismatics in general is an excellent skill to have for quite a few reasons. If you are knowledgeable about rare coins you will be able to make informed decisions that can be highly profitable. Coin collecting can be a very enjoyable hobby in its own right, in addition to being an excellent way to diversify your financial portfolio and make it grow in value. If you have ever considered rare coins in the past or if you are just looking for something new, now is an excellent time to buy.
There are many reasons why a person may be interested in a coin investment. For some, it is out of fear of financial crisis. It is no secret that the recent recession has affected most American citizens, and many have lost faith in banks and paper money. Others have realized that rare coins offer tremendous growth potential without the risk that is involved with intangible investment vehicles like stocks. Gambling is just not ideal these days, and rare coins finally provide a way to make your savings grow with minimal risk involved.