5 Potential Risks to Take Into Consideration Before Investing In Precious Metals

Finance Money

A wise and thoughtful financial decision can do wonders for your business and savings, whereas a poor financial decision can result in a serious downfall. Small or big, one must do detailed research work and take into consideration all the risk factors involved before investing in precious metals. These decisions once put into action, cannot be changed, and the metals become a liability instead of an asset.

Here are the 5 potential risks to take into consideration before investing in precious metals.

STORAGE

You’ll need to store your physical metal somewhere. With a stock or bond, you don’t have to worry about storage. There is always a risk of theft or loss if you store these metals at home. Also, it will be a risk to you and your family in case someone breaks in.

The other selective is to rent a space to store them. That space would provide a safe and trusted storage facility. This incurs additional cost but leaves you worry-free and safe from theft and injury. You can always choose to invest with the help of mutual funds and stocks for precious metals; however, they would not reap the same fruits as the physical metal would.

One must always buy precious metals from genuine and trusted suppliers who are industry leaders & have a proven track record to support their authenticity.

Indigo Precious Metals, for instance, is very transparent about their policies and pricing and takes great pride in the level of customer service they provide to their clients. Since these metals are so precious and involve a great amount of your hard-earned money, you must be very cautious while you plan to use them.

LIQUIDITY

If you hold non-physical precious metal, you cannot encash it immediately. In case of immediate cash requirement, you’ll have to seek other means of investments for help.

There’s one solution to this drawback, and that is online storage. With an online storage account, you could sell your precious metals at any time. This helps in instant liquidity.

NO INCOME OR INTEREST

Unline stocks, bonds, or real estate that provides interests, dividends, or rental income, there is no income or interest in owning any form of precious metals.

This is just an investment that can give no regular benefits unless sold when the prices are high. In case you require money on an urgent basis, then you might even have to incur a loss if the price is low compared to the price you purchased it in.

MARKET RISK

Precious metal investments are exposed to various types of market risks. There is no doubt that something you invest in will face price fluctuations from time to time. It might decline in value due to economic developments and various other events that influence the general economy.

POTENTIAL SCAMS

When it comes to precious metals, having the correct understanding is quintessential. You may end up losing hundreds or thousands of dollars even. Do thorough research and learn a few things about how to test the true value of the metal you have purchased.

Such a heavy investment can only be encouraged for someone who has all the details about genuine metals, including where to invest and whom to trust. Considering the lofty cost of precious metals, you just cannot afford to ignore these essential facts.

Trust only genuine suppliers and be 100% sure before investing. Read various articles, blogs, testimonials, crosscheck multiple times to make sure there is no scam involved. It’s your money, and only you’ll have to take the best care of it by making the right choice of genuine investment.

So, keep into consideration all the above factors and make decisions wisely for a happy and secure investment. Trust only genuine and industry leaders in such investments.

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Ways to Make Your Money Make Money  

Finance

The saying ‘make your money work for you’ has almost become a cliche in the world of finance and one that is often overused. In spite of this, the fact remains the same, having money gives you far more opportunities to make money than if you don’t. The question is how, how can your savings make you money, and how much risk do you want to take with your savings in order to go after that extra cash. If you have a healthy savings account then here are some ways that you can use it to grow your wealth.

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 Use an Investment Group

 One of the best ways that I have found to grow my wealth is to use an investment group, these businesses rely on investors like you and me and offer heathy returns through a series of buyouts and large scale investments. I started using Alta Growth Capital, a Mexican based firm who have helped me to make a healthy return on my money. My investment manager is a guy called Javier Garcia Teruel Avila, he has a rich history in private equity investing and consultancy and has an MBA from Harvard Business School, his rich resume in the finance and energy sectors throughout the Americas plus the smart decisions that he has made with my cash has given me reason to trust both him and the company and invest more money with them.

Real Estate

 Everyone will tell you that real estate is where the money is, whilst this can very often be true, there is no cast iron guarantee that buying and selling property will yield you riches. As with anything, getting into the real estate game comes with risk, it is vital therefore, that you know the market inside out. Few people can predict which way the market is going to go so it is important that you start off small, buying houses at auctions, giving them some TLC and selling them on can be a great way to start. Patience is required in real estate, sometimes you could be sitting on a property for a long period of time before finding someone to buy or rent. If you aren’t in a rush for the money and you are prepared to heavily invest your time in research then real estate could be the way to go.

 High Interest Bank Accounts

 Anybody with a healthy amount of savings should start by looking at what interest rate their bank can offer them, the average in the U.S. is just 0.02%, an incredibly low figure when you consider that there are opportunities to get a flat 1% on your money. Putting your money into an account such as this will not make you rich, but it will earn you a great deal more than you are currently making with your 0.02% interest rate. Shop around on the market and speaks to banks directly about how much savings you have, they can then offer you the best rate available, find out which is the highest and put your money to work.

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