How to Invest in Precious Metals and Profit

How to Invest in Precious Metals and Profit

Rattle the money tree

For the past few years precious metals prices experienced a huge surge, and so did their stock prices. However, this summer these stocks had a big declined due to a slowing of the global economy.

Historically, precious metal prices have been volatile, but entering the market at a low point such as now can prove to be very profitable. The global economy will pick up speed at some point and this will increase demand for metals again.

Difficulty: Moderate

Instructions

Things You'll Need:

·       some money

1.      Step 1

Rattle the money tree

Rattle the money tree by investing in the precious metal market as part of an overall long term portfolio strategy. Since this market can be a bit volatile, investing in it should consist of no more than 10 or 15 percent of your overall investment assets. The stock prices at this point are very low after the market shake up in the summer and fall, making it a good entry point.

2.      Step 2

Rattle the money tree

Invest in precious metal companies stocks with strong cash and balance sheet positions. Think global and don’t be limited to American companies. Other countries with strong precious metal productions include; Canada, Australia, Brazil and South Africa. Do some research at your Broker house or at your mutual fund company. Some precious metal sectors include; mining stocks, gold stocks and platinum stocks. Precious metal companies include; Impala Platinum, Peabody Energy, Newmont Miner and Barrick Gold.

3.      Step 3

Rattle the money tree

Invest in mutual funds that specialize in precious metals. The investments risks can be reduced by investing in mutual funds, instead of individual company’s stocks. Look at Morningstar.com to screen out funds. The Vanguard group has a mutual fund made up of precious metals only. Focus on mutual funds with low cost, so your returns are not diluted.

4.      Step 4

Rattle the money tree

Invest in precious metals by buying the physical metal from a metal service company. This alternative can be a bit expensive because of the storage costs of the metals. There are online services you can use such as kitco.com. This company has been in the business for 30 years; it sells the metals and stores them for a fee.

5.      Step 5

Rattle the money tree

Rattle that money tree, invest in precious metals and know when to sell. After you reach your desired level of return make sure to sell your holdings. This market can be volatile and the downturns can be severe. However, the upswings can be very profitable. Make sure to rattle that money tree, take your profits.

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