There are low-risk investments you can make in precious metals and precious metal scrap. For example, you walk into an antiques mall and buy a pair of old cufflinks for $50.00. You’re not sure whether they are made of 14K gold, 18K gold, or are just gold-plated. But you put your money on the counter and plan to learn more about the cufflinks later. After all, they cost you just a small amount of money. And if you turn out to double or triple your investment, then you’ll be happy. 

Which precious metals make the best short-term investments? And which are best if you are investing in metals and metal scrap you plan to hold for years before liquidating them?

Those are two interesting questions. And here’s an interesting fact to consider. Some metals are excellent investments whether sold quickly or held long-term.

Precious Metals that Make Profitable Short-Term Investments

Over the last few years, people have become skeptical about importing and exporting just about anything.

Due to high tariffs on goods imported into the U.S., doing so has become less attractive and more difficult for American companies. Plus, simply transporting foreign goods into the U.S. has become more difficult. Off the coast of California, ships carrying all kinds of goods from Asia, including semiconductors, electronic devices and even automobiles, are waiting to dock. Although that delivery holdup is lessening, the slowdown that was caused by the coronavirus pandemic is still exerting a negative effect on U.S. manufacturing and commerce.

You can’t hit a homerun or score a touchdown if you are sitting on the sidelines. You have to get in the game.

The same can be said for making money by investing in precious metals. You will never make money as an investor if you never stand up and get started. Also, you will never make a sizable return on your investment if you only make small investments that never take you a little bit outside your comfort level.

So at the risk of asking you a personal question in today’s blog post, may we ask . . .

It won’t be long until we get a new president. Will the change cause the trading prices of gold scrap, silver scrap, platinum scrap and other precious metals to rise or fall? Will those metal refineries, “we buy gold” stores near you and pawnshops be paying more for that old piece of jewelry you want to sell, or paying you less?

There are many ways to enjoy financial advantages from the precious metals you own. You can have Specialty Metals Smelters and Refiners process your gold scrap, silver scrap and platinum scrap, and have us send you a check for the value of the metal they contain. But there are other ways. You can fund your IRA or other investment accounts with precious metals, donate them to your preferred charity – and the list goes on and on.

Due to the upcoming increase in the number of cars that use batteries, lithium is poised to increase in value over the next half century.

Just to review . . .

When demand increases for a material that is in limited supply, the value of that material increases. The more the demand increases and the more limited the supply, the more the value increases. It’s the old law of supply and demand.

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?

Let’s say that you own precious metals and that you would like to borrow against their value. If that is your situation, don’t be apologetic about it. In the current economic climate, many people need to raise cash. Some of those people are business owners who would like to be able to pay their employees until business picks up. Other people are in a crunch and need to liquidate assets so they can pay their mortgages, their children’s college tuition, or meet other financial obligations.

Okay, everybody is worried right now about the state of our economy. And one thing you have to say about the current situation, bad as it is, is that those fears are based in reality. Small businesses are hurting. Some are closing, possibly for good. Individual investors have seen the value of their assets plummet – at least on paper. Kids who are graduating from college right now are having a terribly difficult time finding jobs. Plus, many of our institutions, ranging from universities to museums to theater companies, are wondering if they will ever bounce back.

We are about to enter one of the most uncertain economic periods in modern history – one that many analysts fear could rival the Great Depression.

We don’t like to write about the negatives, we really don’t. But if we want to formulate a strategy for retaining our investments’ value, we need to consider some of the bad things that could just happen in the wake of the current virus crisis:

Are you a little down in the dumps right about now? Well, we don’t blame you, but we would like to offer you a little bit of advice that applies to investing in precious metals . . .

Snap out of it and keep moving forward!

Okay, you’re stuck at home during the current Coronavirus shelter-in-place period. Maybe you can’t take part in all your usual activities as someone who invests in silver scrap, gold scrap, platinum scrap and your other favorite investments. Go to an estate sale to look for jewelry, tableware and other items? Forget it, nobody is holding estate sales right now. Go to an antique mall to poke around? Forget it, the doors are locked.

What’s going on with gold prices? Here are two headlines we have seen in just the last week . . .

“Gold Prices Tumbling to Cover Margin Calls”

“Gold Prices to Surge as Coronavirus Crisis Boosts Stimulus Hopes”

But perhaps this headline is the most accurate of all . . .

Let’s say you walk into a pawnshop to check out whether there are any gold, silver or platinum items there for sale – items that you can buy for low prices. Or you walk into a coin dealer to see what’s on display.

Let’s also say that you find what seems to be a good deal. It’s a South African Kruggerand that contains 1 Troy Ounce of gold. When you ask the dealer the price, he replies, “$1,505.00, because we sell at current trading prices.” So you go online, check trading prices, and decide that you will be getting a fair deal if you buy that Kruggerand for the asking price. So you go back to the pawnshop or coin dealer, pay asking price, and assume that everything has gone well.

Did you know that gambling casinos typically generate a profit of about 2% on all the money that is bet in their facilities? So if $10 million is wagered in a casino in one day, they make $200,000! That explains why casino hotels are likely to offer you a cheap room to stay in, or even a free one. The more people they get through their doors, the more money they make.

Let’s start today’s post by asking two questions . . .

• First, a pleasant question. You own precious metals, and that is good. But do you know exactly what you own, how much they weigh, and where they are located?

• Second, an unpleasant question. If you were to die today (unpleasant!) or contract some illness that would incapacitate you for a period of time, would your heirs know exactly where to find the precious metals you own, or would they be at a loss? Or could they fail to find some of the precious metals you own?

As 2018 is now in the past, we are sensing a lot of uncertainty about investing in precious metals. Some of that uneasiness is due to recent events, such as our country’s imposition of higher tariffs on imported goods. Another new development is that AMPEX, a major dealer in bullion, is now allowing investors to pay for their purchases with Bitcoin. We don’t actually know whether that will produce big changes in the trading prices of gold, silver, platinum and palladium – after all, every time you buy any precious metal you are paying for it with some kind of currency, right? But paying for precious metals with Bitcoin is making the news, and causing traditional traders in precious metals to ask, “What does it mean?”

“A bucking bronco” is the best way to describe what has been happening on the stock market in year 2018. On any given day, the Dow Jones can plummet 300-500 points. Then the next day it comes galloping back. And just when jittery investors start to think, “Thank heavens that is over, whatever it was,” the Dow takes a plunge again.

If you do some searching online for “best places to hide precious metals,” you will find dozens of articles that offer advice on the smartest places to hide precious metals in your residence.