Precious Metals - Are They Worth Investing In?

In the economic climate of today, with the middle class slowly fizzling out, more and more people are searching for any means possible to ensure a financially secure future for themselves and their family. For some, this means taking on a second job or going back to school to earn a degree in a field that will provide them with a more high paying career. For others, this means coming up with alternative methods to make sure that their family will have a safety net of cash to fall on should they fall into a difficult financial emergency, like so many others have in the past several years.

One of these alternative methods is investing in precious metals. In this article we will discuss whether or not investing in precious metals is worth the initial cost, as well as tips in precious metals investment, and the best precious metals to invest in to ensure the most successful possible monetary outcome for you and your family.

• Is investing in precious metals worth it?

In short, yes. While there are some arguments against investing in precious metals, none come close to refuting all of the reasons for making the investment. As economists watch world economies begin to lose their stamina and lose value across the globe, interest in investing in precious metals has become more and more popular. One day, paper money may very well be worth no more than the paper it's printed on - but gold will always be gold. Buying precious metals now is a safe haven against a potential collapse in the economy, in a worst case scenario. And while a total collapse may be unlikely, precious metals still provide padding to your portfolio in the event of the value of the dollar decreasing at all, something which has proven to be unavoidable in the past.

• Tips in precious metals investment.

The best advice is not to over invest. In a manner of speaking, like with any aspect of your life, you don't want to put all of your eggs into one basket. While precious metals are a sound investment, they should not be your only investment. Top financial advisers and gurus suggest investing 3-8% of your total portfolio in precious metals.

In addition to not investing too much, it's imperative to understand exactly why people choose to invest in precious metals. It offers no annual payback, no cash in the bank. Investing in precious metals is an investment in the future, a preparation for problems in the economy. Expecting immediate returns from precious metals will only lead to disappointment. Of course, this should not deter you. While there is no immediate financial gain from purchasing precious metals, the safety net created for you and your family is nearly invaluable.

Lastly, make sure to research different ways of investing in precious metals and decide which works best for you. The top three ways suggested by financial advisers and gurus are: stocks and mutual funds holding shares in mining companies, exchange traded funds that hold bullion (precious metal bars valued by weight), or coins - both antique and newly minted - that are made from gold, silver, platinum, or palladium.

• Best precious metals to invest in.

Of course, when most people think of investing in precious metals - or when they think about precious metals at all - the one that comes to mind is gold. And with good reason, as gold has long been a symbol of wealth, dating all the way back to ancient times, and is unlikely to ever lose value. But it isn't the only precious metal that's worth investing in. The other three precious metals that analysts suggest investing in are silver, platinum, and palladium.

In particular, platinum and palladium are growing in popularity wildly with investors in recent years. Platinum, because it is ten times more rare than gold, and palladium, because it is one of the more obscure precious metals.

Ultimately, the decision lies with you. Do as much research as you can, and remember that an investment in precious metals is an investment not in today, but in tomorrow.  

How Liquid Are Your Assets?

When it comes to financial asset management understanding the ability to turn assets into cash is important. When an emergency comes up or an opportunity to make a substantial investment presents itself it is imperative to have access to the money needed without long wait times.

What Is Liquidity

Liquidity refers to the ability to take assets and turn them around into spendable or investable cash. Cash is, itself, the most liquid asset since it is easily spendable as it is. Other types of investments vary in liquidity - which means how easy are they to convert to cash. To have a firm idea of the financial state of someone attempting to make a major purchase or investment, they would be asked "how liquid are you?" Since some assets are not easily convertible they are still valid investments but don't aid in liquidity in the event a person needs a quick influx of spendable cash.

Ranking Liquidity of Assets

If concerned about having substantial liquid assets, one should consider having a diverse portfolio of investments and assets. Here is a ranking of liquidity that can serve as a guide.

• Savings Bonds - After cash, these are the most liquid because they can easily be sold to a bank and offer immediate cash in hand.
• Stocks, bonds, options & commodities - These can be sold fairly easily and quickly, but may take a loss in doing so.
• Certificates of deposit - These are not too difficult to convert but there is a penalty.
• Collectibles - This includes art, coins and more. If taken to a dealer they may be convertible to cash fairly quickly but not likely at the fairest rate. For some collectibles it may be more difficult and time-consuming to find a dealer or pawn shop willing to take them. The best bet for the investment made is to send them to auction or other sale, but that can take a good deal of time to arrange.
• Preferred or restricted shares - These have restrictions on when and how they can be sold so are less liquid and may not be accessible at all under the circumstances in which the cash is needed.
• Retirement funds - These may allow the owner to take a loan or to close them under certain conditions but it can take several days to a few weeks and comes with hefty penalties or interest on the loan.
• Real estate - Obviously one of the least liquid assets though also one of the most significant assets to own, real estate can take a significant amount of time to sell and even longer if you want to obtain the most money possible for the investment made.

Obtaining Substantial Liquid Assets

Having a diverse portfolio with a mix of several different types of assets makes it easier to liquidate assets when needed without destroying the portfolio. For proper financial asset management it is a good rule of thumb to maintain some assets in several different categories. Some assets should be easily available to convert to cash. Others that are less easy to convert often also have a higher return on the investment when they are sold or converted thoughtfully and taking the market into account. Retaining some assets that are difficult to liquidate may be a great way to ensure continued investment income. Balancing all of these needs is indispensable to financial health, but it is also valuable to ensure substantial liquid assets that can serve unexpected needs.
Every investor should ask themselves "how liquid are you?" and have a reasonable answer at any given time of how much cash they could convert their investments into including how long it would take to do so. Financial asset management includes the skill of being able to access those assets as needed.

The Global Economy

The economy is composed of internal and external factors. When economists discuss supply and demand, they are referring to the external economy. Internal economy refers to the economic decisions that directly impact a person. When someone speaks of net worth, they are referring to their internal economy. In recent years, drastic changes have occurred in the state of the economy. Fortunately, there are ways to ensure people continue to prosper in the local and global economy.

Learn New Skills

Someone who is waiting for the government to solve their problems will be waiting a long time. People need to depend on the person in the mirror for economic security. Anyone who has been reading the news knows economies around the world are moving like a roller coaster. Sometimes they are up, and sometimes they are down. Regardless of the market, everyone needs to improve their internal economy. People should always be searching for new business and investment opportunities. Setting aside money for an emergency is also important.

Produce More Consume Less

Most people consume more than they produce. Consumerism is great for companies, but it is bad for the internal economy. Wasting money on needless things means there is less money available for important things. In an emergency, most people quickly find out the miscellaneous items they purchased are worth only a fraction of the original price tag. Instead of spending money on useless junk, everyone should designate a percentage for fun money and the rest for savings. People can produce more by learning basic sewing and gardening skills. Very few people live completely independent of corporations, but being less dependent on outside forces can still strengthen the internal economy.

Take Advantage of Opportunities

Focus on a problem and find a solution. When people are creating economic prosperity, they are providing a valuable service. Entrepreneurs should learn what talents and skills other people are seeking. When the information is clear, leaders should take advantage of online and offline opportunities for growth and expansion. Anyone can become rich by simply having the right skills to solve a problem. It has never been easier to start a business, so all people should take advantage of every opportunity available.

Integrity in Business

Corporations are known for being scandalous, and the general public does not trust large companies. In the current state of the economy, integrity is always an asset. When customers know they are patronizing someone whose values align with their own, they will return when they need future services. They might even refer other people to the business. Leaders should always perform as if they are in front of an audience. A potential customer could be standing nearby with their eyes and ears open for a sales pitch.

Global Expansion

Expanding globally to other countries often results in a larger customer base. Before branching out internationally, research on emerging markets and world economy news is critical to success. Digital products are sought after by many people in other countries. Since the products are digital, shipping fees are eliminated. There are possibly millions of people around the world interested, and the Internet is a bridge to them. If a business requires exporting, entrepreneurs should be reading world economy news to take advantage of lower prices in emerging markets.

Economic prosperity is the key to financial security, and combining talent and skill creates a successful product or service. Combining these factors with integrity will impress customers. Taking advantage of international opportunities will provide a global audience. All entrepreneurs should improve their internal economy on their journey to financial freedom. 

Is Your Money Safe?

What happens when one begins to find outside sources to invest their money in safely? There are hundreds of opportunities including individual retirement accounts (IRAs) in traditional or Roth format, 401(k), employer plans, real estate, Forex, stocks and bonds, business franchises and other lucrative paths for financial stability.

Today's investors are amp to read each word, statistic and forecast of an investment before making a leap. This is obvious if you are an informed consumer, but the ability to choose safe investments is non-existent. You can find ways to invest your money safely, but the safety you seek Is in the mindset of the investor.

Consider these principles as you begin:

- What kind of investor am I?
- How can I use this investment to better my life?
- Should I trust this company with my money?
- What do I expect in return?
- Are there guarantees?

Create the proper expectation for your choices. Investors whom assume the whole responsibility of an investment tend to find themselves overwhelmed by a lack of control. You have to keep your mind set on an absolute principle of what you want to accomplish as an investor. The safety of your money is in the security you have in your decisions to invest.

Before you can choose an investment, you have to research options.

Research Investment Options

Safe investments are available in different forms, but each is designed differently based on an investor's level of risk tolerance. Until now, investors depended on the information a broker provided to make the right moves. Investors have access to online trading markets with in-depth information related to a company's performance, forecasts and investor meetings.

Research an investment's platform by answering these questions:

- Is the platform easy to access?
- What are the minimum deposits and account maintenance fees?
- How can the platform help investors reach their goals?
- Is this vehicle a tax shelter to avoid costly fees for profits?

Questions help demystify an opportunity to invest your money. Smart, savvy investors take time to compare investment platforms before jumping into the first one offered. Intelligent designations of funds is smart, safe and secure - an involved investor tends to acknowledge faults of each program, but proceed with caution.

Determine Investor Risks

Many ways to keep your money safe while investing in different things. Learn the risks involved in the platforms you choose; is there a fluctuating market for your investments?

Can you trust your judgments?

Do you have to risk losing money if you do not earn a profit? A risk level relevant to one's expectations can ease the stresses of monitoring an investment portfolio. You can learn how to invest your money safely by analyzing your risk tolerance early as you research an opportunity.

Risks are a part of making money in one's investments. We are all faced with the dilemma of how to invest your money safely, but risks outweigh any discussion an informed investor makes and assumes as they seek opportunities.

Gain Confidence in Your Investments

With a little insight and confidence, companies can and will help you find ways to keep your money safe. Investment platforms with statistical data and outlooks on company developments ensures investors are comfortable with their decisions and open to new methods of growing their wealth.

Are you confident in your decisions? Do you feel that your wealth is in good hands? Keep your money safe by developing confidence in your investments and allowing them to take course as they see fit. You always have an option to withdraw your funds from an account as long as it does not conflict with the company's policies.

It's all a chance. With the larger risks, you have an opportunity to gain excellent profits but you have to know what you want in the end.