Today, many are thinking about investing in precious metals, especially considering the early 2000s, when gold quotes were peaking. For example, the profit of investors was 24% per annum, and from 1975 to 2012. the price of gold has grown 50 times. And even if it is not as popular investments as deposits, buying up currency, forex transactions, but still a profitable source of profit.
The political situation and some legislative acts (in particular, the Dodd-Frank law) contributed to a sharp decline in precious metals stock indices, since they prohibited trading outside the exchange. Over time, the situation stabilized and investments in precious metals became profitable again.
Main advantages
Investing in gold (or other metals) is seen as one of the ways to diversify investment risks. Suitable for both individuals and legal entities, because:
- assets are highly liquid - they are easy to sell, they are not subject to depreciation;
- metals are easy to store, no special conditions are required;
- they are not related to the economic and political situation of individual states;
- Historically, precious metals have been used as an instrument of savings and a measure of providing money.
The main feature of the modern economies of the countries of the world is the constant increase in the money supply, and the more there is, the more money is depreciated. Unlike gold, its quantity is quite limited, and therefore its value will only grow.
Investment Methods
The modern financial market offers many instruments for investing in precious metals, and everyone can choose their own option.
Opening special bank accounts
A simple and generally accessible method that requires a thorough analysis of the state of a financial institution. It is not bad if these are large well-known companies that have been providing their services on the market for a long time and have a good reputation. In such situations, it is important to remember that these special accounts are not covered by deposit insurance in case of bankruptcy, and if this happens, the client will not be able to return anything. Technically, an agreement for opening an account is similar to a deposit one, only the type of metal and grams are prescribed instead of currency.
Trading with a broker
Trading on the stock exchange with a virtual precious metal, tracking quotes, making quick buy /sell decisions, is a kind of risky game to get a very real profit. A distinctive feature is the ability to earn both on an increase in quotes and a decrease in the rate, and using the leverage tool, you can trade significant volumes.
