There are many reasons to invest in precious metals today. This is a great opportunity that allows you to diversify your investment portfolio. Due to the fact, that bullion prices are constantly rising, it's necessary to decide in what metal you want to invest in, whether you need to act like this at all, carefully and at the same time immediately.

To make the right decision, let's consider the pluses and minuses of this type of investment.

Advantages

Investing in precious metals has some benefits, especially, because it's long-term. Also, other types of investments may not contain that.

Therefore, let's see how good it's to invest in coins, ingots, etc.

Worth

Gold has been and remains the most popular precious metal since ancient times. This precious metal doesn't require special care, doesn't corrode, and you can store it easily. Compared to palladium, for example, the last one isn't much popular and is risky to invest in.

In these pandemic days, when we deal with an unstable economy, investors tend to invest in gold. Thus, gold is a great vehicle for diversifying your investment portfolio.

The convenience of purchase and storage

To store a wad of money, you need a special and the necessary space in your flat. Surely, you can keep them on your deposit, but exchanging money for gold coins or bars is easier.

Then, only a couple of gold coins worth $ 40,000, or more, will be stored in a small secluded place. You can also take them with you wherever you go, for instance, when moving.

If you buy bullion, it's wise to keep them at home as well. In an emergency, you can use them right away.

So, buying precious metals is as easy as buying items in a store. All you need to do is find a trusted gold dealer. One of the most popular is Pacific Precious Metals store.

Inflation protection

Due to the COVID-19, investing in precious metals is one of the most attractive areas. Especially, if talking about gold.

Usually, the cost of precious metals rallies while the dollar is constantly jumping. Therefore, keeping your savings in this form is a good solution when economic leaps.

Disadvantages

Investing in precious metals has many advantages that you may even personally determined by yourself. However, there are also cons here.

Spendings

The process of purchasing precious bars or coins is straightforward. But the additional amount that you will have to spend varies depending on the metal type, market conditions, dealer, etc. Also, remember: the commission you pay for the gold or silver purchase is higher than the stock value.

It's worth mentioning that silver is usually more expensive than gold. Why? By the fact that it's more difficult to obtain silver in its pure form and, although their cost is the same, the sale price of silver as a product is lower.

Another point is that bars are cheaper than coins due to their simpler design. However, aesthetics and beauty connoisseurs often don't pay a big attention to the price and are ready to buy a beautiful coin for a higher price.

Storage

You can store your bullions or coins at home, as this is handy. If it seems extremely unsafe to you, use a bank vault. But this requires a constant payment of a commission. Even if you store an ETF encased in bullion, the commission will still be charged. Nowadays, the largest investment fund ETF takes a commission of 0.40% per annum.

Do not bring percentage and income

The main purpose of precious metals investing is to save money. You don't make any profit when storing gold coins or bars, as is the case with stocks or bonds purchasing.

However, this doesn't mean that there is no need to invest in it. If your only goal is keeping your money, then you can omit this drawback.