Four Questions to Ask Today before Investing in Precious Metals
The Coronavirus Recovery Period . . .
There’s no doubt that the coronavirus crisis has changed everything. It has changed the way we connect with other people, shop, work, enjoy our free time, and much more.
So it only stands to reason that the crisis has changed the way we invest, and profit from, precious metals. But the funny thing is, not everything has changed. Gold scrap, silver scrap, platinum scrap and certain other investments were smart investments before the pandemic struck – and they are still good investments today. But how can you determine which forms of those scrap investments will yield the biggest return today? How can you make the smartest picks among all the precious metal investments that are available right now?
One key is to ask these smart questions before you invest your money.
Can I Buy this Investment at a Low Price Right Now?
Certain investments, including coins and bullion, are selling today for comparatively high prices, because their value is tied to current trading prices. But other investments, including precious metal supplies that were being used by companies that experienced difficulties (or went out of business) during the pandemic, can be bought at depressed prices. That is why platinum wire, gold wire, welding supplies and certain other precious metal sources are worth looking for today.
How Much Is Your Investment Likely to Appreciate?
If you can acquire quantities of gold, platinum and silver at below-market prices, you can make more money. Yet buying for a low price will profit you more if you are certain that the value of your investment is rising. The good news is that every sign indicates that the value of gold and platinum, especially, will remain strong, or appreciate as the economy recovers. Why? Because demand will increase as industries like aerospace, electronics manufacturing, jewelry, recover and resume operations. Silver will appreciate too, but bear in mind that it is trading at somewhat reduced prices right now.
How Will Worsening Relations with Other Countries Affect Your Investments?
You kind of need a crystal ball to predict how tariffs, trade restrictions and other factors could impact on the prices of precious metals in the months and years to come. One example is that China is currently producing about 60% of the solar panels that are being sold around the world – and solar panels contain silver. Currently, China is supplying a lot of the silver it needs for solar panels, but is also importing silver from Mexico, Canada, and the United States.
So again, it is difficult to predict how trends in international trade could affect the value of your precious metal investments. Bear in mind, however, that if it becomes more difficult to sell your metals, the value of what you own could become depressed.
How Difficult Will It Be to Liquidate this Investment?
This is an important question to consider, because the real value of any investment is not found “on paper,” but the amount of money it yields when you sell it.
Let’s say, for example, that you own a coin contains gold that is worth $1,000 at current trading prices. But because you need to raise cash to buy a home (or meet another financial need), you accept an offer of $750 for it. So the real value of that coin to you, no matter what the value is said to be on paper, is $750. Too bad, right?
But here is some good news. Most precious metal investments are quite liquid. Whether you own silver scrap, platinum thermocouple wire, or gold plating supplies, you can liquidate them, in most cases, quickly, by calling Specialty Metals Smelters and Refiners at 800-426-2344. And you can liquidate them and receive payment at current trading prices.
Questions, Questions . . .
What is the earning potential for your precious metal investments? Which metals should you be considering now? Those are important questions to be asking as the recovery begins. And we have answers. Please call us at 800-426-2344 to discuss your investment strategies today.
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