The Beginner’s Guide to Investing in Precious Metals


About 53 percent of the American population invests their money in the hopes of growing their wealth and increasing their annual income. While the bulk of those investments happen with standard stocks, bonds, and funds, many investors are starting to recognize the benefits of investing in precious metals.

Buying precious metals like gold and silver is a great way to round out your investment portfolio. However, figuring out how to get started isn’t always clear and easy.

Here’s what you need to do to be able to invest in precious metals the right way.

Figure Out Why You’re Investing in Precious Metals

Before you start looking into your investment options, it’s helpful to understand why you’re making the choice to invest in precious metals in the first place. What are you hoping to accomplish with your investments?

Are you looking to diversify your portfolio to hedge against loss? Are you worried about the way the market performs during volatile times? Do you just have a favorite precious metal and want to own it?

Answering these questions will help you create a better and more comprehensive investment strategy.

Keep in mind that there is no wrong answer here. Precious metal trading and investing is a great way to increase your income without relying solely on the stock market. Gold coins function as the ultimate buffer against harsh economic realities. Nations with the fastest growing economies invest billions in gold. But you don’t have to run a country to invest in gold. If you are not sure is Lear Capital legit, or right for you, then do read on and do some of your own research.

Understand the Types of Metals Available

Though most investors start by buying gold and silver, there are other metals to choose from. The types you choose to buy determine the types of returns you can expect from your investments. Here are the most common metals investors rely on.


When most people think about precious metals, gold is the first one that comes to mind. It’s used to secure most currencies across the globe and gets incorporated into most modern technology on a daily basis.

Since it’s in such high demand, gold often carries a high price. That said, it’s also considered one of the safest investments you can make.


Countries across the world used silver, like gold, to back their currencies for centuries. It’s more common than gold and as such carries with it a lower value. However, it’s still considered highly valuable and tends to have relatively predictable resale values on the market.


Platinum is the least common of the precious metals investors can purchase. It gets used in jewelry making, automotive components, and even medical equipment.

In the right circumstances, platinum can be just as valuable as gold, but the value does vary with the market. Keep in mind that it’s still considered a valuable commodity and can help diversify your precious metal investment portfolio more thoroughly.


Copper is almost always in high demand. It’s used for currency, but most often gets used in electrical wiring and plumbing equipment.

Since it’s so versatile, copper is almost always in high demand. This means it’s a safe but more affordable option to incorporate into your portfolio.

Decide on Your Buying Method

Once you decide on the types of metals you want to invest in, you’ll need to figure out how you want to buy your investments. There’s more than one way to invest in precious metals.

Many people prefer to buy coins, jewelry, and bullion to secure their investments. These are ideal for collectors whose primary goal is building their collection, not just increasing their wealth. Invest in precious metals with bullion box subscriptions to have premium-quality physical investments. 

If you’re looking to streamline the investment process or want to be able to buy larger amounts, investing in precious metal funds is a better choice.

These funds get traded the same way as stocks. You’re able to purchase just a few shares to diversify your existing stock portfolio or invest heavily to protect against a volatile stock market. Keep in mind that you don’t take possession of the precious metals that you buy this way.

You can also invest in a combination of the two if you so choose. It all comes down to what you’re comfortable with.

Look into Storage Options

If you’re buying futures and certificates, you don’t have to worry about keeping your precious metals safe. The companies backing the futures you buy secure the physical metals for you.

However, if you’re buying physical metal yourself, you’ll need to find a way to keep it safe and in good condition.

Think about the types of metal you’re buying and the forms it’s coming in. If you’re buying bullion and bars, you’ll want to keep them in a safe and secure area. Most investors choose to store their bars and bullion with their bank, but some prefer to install high-grade safes at home.

If most of your investment is in the form of jewelry or coins, get advice from fellow collectors. Find ways to store your metals that reduce the risk of damage or corrosion. This way, you’ll preserve the collectible value of your investments in addition to the value of the metal itself.

Examine Your Strategy

Making the decision to buy precious metals is only one step in the process. You need to also examine your investment strategy so you can maximize your growth potential.

Think about what type of investor you want to be. Are you going to be aggressive and buy as much as you can when prices drop? Do you want to play things safe and only acquire small amounts when your budget allows?

You need to be ready to take advantage of the market when terms become favorable. Try to sell what you can when prices are high and buy more when they’re lower. If you’re investing in collectibles, follow the trends and buy when things are in less demand and sell when demand is high.

This way, you’ll get more for your money every time.

Research the Market and Your Buyers Often

The time will come when you want to sell some of your precious metals either to free up cash or to make other types of investments. Before you do, you’ll want to research the market and make sure you understand where prices are.

This way, you’ll be able to recognize a good and fair offer when you’re trying to sell.

According to the experts behind, you’ll want to sell to a buyer that acts with integrity. Reputable buyers and their agents won’t charge a commission when they buy your precious metals. They also shouldn’t try to lowball you or haggle your asking price down.

Remember, if you ever feel that you’re not getting a fair offer for your precious metals, you don’t have to sell them.

Consider Your Risk Tolerance

Though investing in precious metals is relatively low risk, there’s always going to be a certain degree of risk involved. Start thinking about your risk tolerance early on.

When you’re younger and have more opportunities to recover from financial losses, you can afford to invest in riskier funds. These could be things like gold mining stocks or general futures. Those funds have a higher risk, but also offer you the potential for greater returns on your investment.

When you’re older and aren’t working as much, you’ll want to hedge against risk as much as possible. Investing in EFTs, bullion, and physical metals will allow you to take advantage of the market’s rising prices. However, the returns you’ll see will likely be lower.

As a general rule, try to balance your risk with each investment you make. Never invest in a single type of metal alone and you’ll create a balanced portfolio that will be able to withstand changing economic situations.

Continue to Diversify Your Portfolio

Though it might be tempting to avoid investing in other industries, investing in precious metals alone is incredibly limiting. You’ll want to diversify your portfolio by investing money in traditional stocks, bonds, and funds too.

This way, if one type of investment drops in value, your total wealth won’t take as much of a hit.

If you’re not sure where to start, consider talking with a financial advisor. Just make sure to choose a professional that you’re comfortable working with.

Keep Emotions Out of It

For many investors, watching the market change and fluctuate can lead to feelings of stress and anxiety. When this happens, it’s normal to want to sell your investments quickly in the hopes of avoiding additional losses.

Instead of responding to market fluctuations emotionally, take a deep breath. The value of precious metals tends to rebound even after it drops. You may find it better to be patient and wait the downturn out.

Look at the overall picture and assess the performance of your investments as a whole. This will help you make the right decision without falling victim to a knee-jerk reaction.

Now You’re Ready to Build Your Precious Metals Portfolio

Investing in precious metals is a great way to build your wealth and diversify your investment portfolio. This guide should help you get started on the right foot from the very beginning.

As long as you remember to invest in different things and spread your money out across different types of metals, you’ll be in good shape.

Looking for more tips to help you become a savvy investor? Check out our latest posts.

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