Precious Metal Investment a Solid Long Term Plan?

In these volatile times, investors are looking for safe investment opportunities that they can depend on. Creating and protecting a secure financial future is not always easy unless they know what types of investments are considered to be the most solid. But with a little research, investors are finding it may be a good idea to put precious metals like gold and silver on the top of their priority list. But even once that decision has been made, there’s more to consider.

Typically, precious metals can be found in at least two options including the physical form and derivative forms like ETFs (exchange-traded funds). Even though ETFs are considered to be very convenient for short-term investors that prefer to move frequently in and out of the market, this is not the primary focus for those who are looking for long-term wealth and security.

In past times, most vehicle brokers, financial planners and Wall Street commentators steered away from ETFs as a preferred choice since they were late in acknowledging the wisdom of investing in precious metals as a more secure investment option. Today, these same professionals are now urging the public to buy silver and gold ETFS, especially because it is a fee generating tool for those who are not engaged in direct physical ownership investment opportunities. With this being said though, one of the primary factors in long-term investing is doing so with minimal or zero risk of future defaulting…

Drawbacks to ETFS as a Secure Investment Option

PublicDomainPictures via Pixabay

Therefore, if for any reason the manager of the trust fails to perform as expected or fail to obtain metals unencumbered by other claims, the investor can lose part or all of the money that they invested. In some ways, the risks of metals ETFs are similar to the risks of owning other financial instruments.

Benefits to Direct Physical Form Ownership

Silver ETFs and the Gold ETFs are not the most secure way to own precious metals. A better way is to own physical gold and silver directly. The main reason is that precious metals are held by the individual instead of by a third party. Therefore, even if something happens to the market, the investments made are still secure because bullion and coins can be presented physically in person at any time. The only factor that people are normally concerned about is its storage.

The type of storage can differ because it may be stored at no cost in a safe onsite or offsite in a security box that cost per month for its storage. This means gold and silver bullion and coins are great investments to make if security is the primary goal.

Most people know that precious metals are great investments for people who want to make sure that they have a secure investment. However, the type of investment instrument they use can make a significant difference in protection. This is because ETFs are obtained through investors that people entrust their securities to and physical gold and silver can be accessed easily onsite and off. So normally, the best decision they can make if they are looking for secure protection is to buy gold and silver in its physical form.

Veronica Davis
Veronica Davis is a former Marine, now a mom of two boys who has found a passion for freelance writing. She loves cooking and rarely misses something in the food industry, but she also enjoys writing about business, home and anything interesting.