Should You Store Your Precious Metal Profits in Unproven Investments and Currencies?

Precious Metal InvestmentRecycle Precious MetalsRecycling and Refining
Written By Barry Lenson

Are you making money from your precious metal investments? Should you invest the money you are making in “alternative” investments like bitcoin?

We don’t think so. We believe you should stick with “traditional” investments. In this post, we will explain why.

A Little Historical Perspective

Back on November 17, 2017, investment analyst Steve St. Angelo wrote a post for MoneyMetals.com that he titled, “A Few Unwise Investors Are Investing ALL Their Precious Metals to Buy Bitcoin.” Although 2017 was some years ago, we think that his point is still valid today. He wrote:

“There is a new trend by individuals in the alternative media community who are now selling out of precious metals and buying into Bitcoin and cryptocurrencies. While this may seem like a good idea, especially when Bitcoin and the cryptocurrencies reach new all-time highs, it is likely a big mistake. Now, I am not saying that individuals shouldn’t invest in cryptocurrencies. Rather, it’s a lousy idea to sell all of one’s precious metals holdings and put it all into Bitcoin and cryptocurrencies.”

If anything, those words are more valid today than they were when Mr. St. Angelo wrote them back in 2017. Here are some of the reasons we can point to:

  • Bitcoin investments are not insured by the FDIC. Granted, some investors who are putting money into bitcoin are making big returns. But is earning a big return on an uninsured investment a good idea, given the risk of loss? Of course, it is up to you to decide. But after you have invested a lot of time and money in acquiring precious metals, do you really want to put all of your earnings at risk?

  • When you invest wisely in precious metal scrap, you are already making a good return, so why put that at risk? When it comes to making money in precious metals, we are firmly of the opinion that you can invest wisely and make a big return when you recycle scrap and unlock the value it contains. You sometimes can, for example, invest $1,000 to buy a lot of industrial scrap and sell it for five, 10 or more times that amount. So you are already making a good return on your investment. Do you really need to put the money you have made at risk in a chancy investment?

The same is true for other risky investments such as junk bonds, penny stocks, IPOs from unknown startup companies, and some stock options and futures. Why live with excessive risk?

Invest in Scrap, Recycle It for Top Value . . . and Invest Your Earnings Somewhere Safe

That is the investment strategy we recommend. And bear in mind, it is not an unproven approach to making money from your cash. Our clients are doing it every day – they call us, send us their scrap to be processed, and we send them a check. They can then invest that money wherever they want. Hopefully, they make safe investments.

Want to learn more about recycling your precious metal scrap profitably? Our precious metal consultants are here to answer your questions. Why not speak to them by calling 800-426-2344.

Barry Lenson
Previous

Will the New Infrastructure Bill Cause Precious Metal Prices to Soar?
Next

Don’t Let Your Precious Metals Get Swept Away in a Hurricane