While not discussed often on this blog, investing in Precious metals like gold, silver, etc., or even other types of collectibles like art, stamps, etc. may be a good option for some. (Evan’s Note: I don’t discuss the topic very often because I don’t really understand commodity investing. What is physical gold going to do for me if we do have the zombie apocalypse? and owning GLD or similar ETF just seems the same as buying an inverse etf like SPXU)
Reasons to Research Precious Metals as an Investment
1. Lower impact of inflation
Prices of precious metals mostly rise when inflation is on the high end, and even during times of low inflation, the prices of precious metals have been rising in the United States.
2. They are liquid and marketable
The price of the particular metal is posted everywhere and it isn’t difficult in most places to find a shop that will buy back the metal (with a “fee” of course).
3. Physical possession
You get to keep, hold or even sleep with your investment. Precious metals are physical items, which you can choose to keep anywhere you desire. This comes with the obvious downside that your investment can be easily stolen.
4. Number of options
You’re not limited to silver and gold. There are many other types of precious metals available. You can pick any one of them to invest in, or use precious metal funds to investment in more than one type if desired. Your investment is going to hold value. While this post is focused on precious metals, a lot of the reasoning can be transferred to other valuable collectibles including rare autographs, stamps, etc.
5. Your item is high in demand
Currently, there are no shortage of places to unload metals. Even other collectibles seem to have a market which is exploding. Juliensauctions reported record sales of 20 million in 2009 (Evan’s Note: This number means nothing without previous statistics).
6. Information can be found with a little research
Researching precious metal prices is not particularly difficult and websites like http://www.collectorscorner.com, tfaw etc. sell other collectible items. You could even check out E-Bay to see to if there is a demand for your item.
Do you own any precious metals? Do you have a collection that is worth anything?
Guest post by Amanda