Investing in gold, silver and bronze

If you do not know what to invest in, think about the precious metals option

Investing in gold, silver, and bronze is not as complex as you might think. Be clear that profitability depends on the volatility of the markets. The investments in precise metals have left good profits to those who have deposited their capital in them, in the international markets. Its valuation has become a refuge for investors in the face of dollar volatility and the price of oil.

A report on these investments highlights that gold, silver, platinum and bronze are showing good behavior in the markets so analysts and investors invest a good part of their portfolios for marketing. However, it is worth noting that against all odds, investments in metals are not investments with assured returns and are subject to fluctuations in other financial markets.

HOW TO INVEST IN PRECIOUS METALS?

First of all, it should be noted that the more volatility and uncertainty in the other markets, the price of precious metals continues to rise. And prudence and market analysis are recommended before making the investment. Here are some recommendations:

DIRECT PURCHASE

The direct purchase of bullion (gold, silver, platinum and bronze) is the most conventional formula for investing in precious metals. To do this, even in the sale, you must resort to companies specializing in these transactions.

When buying or selling precious metals through specialized companies, consideration should be given to the purity of the ingots (99.9%, although there are ingots of different purity), international certificate in the metal (seal), Invoice of purchase (hypothetical claims), and certificate of the manufacturer company (mark, identification number, date of manufacture and weight).

Likewise, for safety, a securities transport company must be contacted to bring the ingots to be deposited in the security vaults of a bank.

TRANSACTIONS THROUGH INVESTMENT FUNDS

Treasury funds or equity funds may also invest in precious metals. For less specialized or more passive investors who want to deposit their money into metals, the fund's vehicle is the best alternative. But it is worth noting that it must be well informed to check the scope of the investment and also the management fees and minimum times of permanence if required.

DIRECT INVESTMENT IN MINING COMPANIES THROUGH SHARES

The purchase of shares of mining companies, specialized in deposits, exploitation, and sale of precious metals, is also presented as an alternative. However, it is clear that it is not a direct investment, but that the investment is made in a management and business model, in a company that operates different production lines and that requires a more detailed analysis of the company.

Also, you must take into account the price variations of the metals in which you have the main lines of business. The gain is obtained through the distribution of dividends as a positive cash flow.

INVESTMENT BY OTHER ROADS

In sophisticated investments are futures contracts, contracts for differences and investments in ETFs (Exchange Trade Funds) that invest directly in precious metals. Contracts for differences or CFDs are investments based on the price and fluctuations of many financial assets.

This formula is recommended for experienced investors because of the risks inherent in the multiplication of securities and the leverage in which it operates. Futures contracts are complex financial products, and in Colombia, this kind of transaction is precious for precious metals.

OUR RECOMMENDATIONS:

In order to invest in precious metals, there are multiple routes or formulas but it is advisable to use the direct purchase of precious metals or convert your IRA or 401 (k) to physical Gold.