If one wishes to enter the world of investment and have enough money to do so, there are various ways for such an endeavor and even the possibility of eventual diversifying of the investment. One of the most common ways is the physical investment in precious metals.
The precious metals are known to be rare metals and chemicals which throughout history have been used for different purposes. These elements have high economic value and currently the most common metals in the market are gold and silver. But when referring to precious metals, ruthenium, rhodium, palladium, osmium, iridium and platinum must also remain in this area.
Better than money
People always need a good reason to do something, especially when they are thinking where to invest their hard earned money. When inflation occurs, the price of goods and services increases. This means that the money is worth less while the value of a precious metal such as gold does not change and keeps its value. Moreover, in the world of financial assets there is generally no information for transactions that are less than $ 10,000.
Protection against variations of the coin
In 1987, the US dollar was worth twice its current value. This is precisely why investing in assets like gold makes sense. Gold, silver and precious metals are doing well and will continue to do so regardless of the dollar, euro, franc or the yen performance. Some people assume that the metal jewelry is similar to the coins or bullion investment, but while the jewelry may look beautiful and is worth a considerable amount of money, especially if it is old or of exceptional quality, it will never be appreciated in value the same way as precious metal bullions.
In good times or bad times, gold, silver and platinum have retained their value and earned their reputation as a safe investment. For example 1 oz of gold could have bought a decent suit in 1800, while today, if you sell an oz of gold, which would be $ 1,200, you would get more than enough to buy a decent suit. The same cannot be said for the value of a dollar in 1800; it is said that since 1913, the dollar has lost 98% of its value.
A great advantage of the precious metals is liquidity. Liquidity is the speed with which asset can be converted into cash. For example, real estate assets are illiquid. Liquidity is an important benefit for investors. If you own physical bullion, you can go to any store or precious metals trader on the website and quickly convert your assets into cash.
An Alternative – Exotic Currencies
If you are looking for an alternative to investing in gold, you should definitely consider exotic currencies. They have been all the rage among the savvy investors for more than a few years now and for a very simple reason – they are bound to explode in value anytime soon. For example, you can buy Iraqi dinar in huge amounts today and make a spectacular profit once the dinar is reevaluated as Iraq’s economy begins to recover (which is only a matter of time thanks to huge deposits of oil).
Due to the current effects of the financial crisis, investing in precious metals and exotic currencies could be the best option. When most people think of investing in precious metals, they usually choose gold as the method of investment, but this strategy varies depending on the needs of each individual. Even if platinum and palladium are used for different purposes, gold and silver remain the reliable factors of the investment itself. Exotic currencies are a more adventurous investment, but they can be more than worth it.