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Precious metals have significant economic value. They are rare metals with different uses that make them great for investments. There are 12 types of precious metals and 4 of which are considered to be the most valuable. The precious metals that are are most in demand include gold, silver, and platinum.

Invest in Gold or silver?

The average precious metal investor prefers to invest in gold rather than silver. Gold is used for hoarding and adornment. Many people use it to hedge against the dollar.

While both gold and silver have industrial uses, demand for silver in industries is more than demand for gold. Many central banks around the world use gold. Approximately $3 trillion in gold is owned by central banks. In the first six months of 2019, central banks purchased over $15 billion worth of gold. Central banks now hold 34,000 tonnes of gold.

As an investment, gold is free of VAT. In contrast, silver and other precious metals are not free of value added tax. If the metal is in an accredited vault in an allocated account, one may avoid paying VAT.

2. What Is the Best Way to Invest in Precious Metals?

There are different ways to invest in precious metals. The different methods of precious metal investment expose investors to different measures of risk. Investors are encouraged to take great lengths to consider the benefits and potential disadvantage ages of using the different mediums of precious metal investment.

3. What about buying through eBay?

When it comes to making purchases online, platforms like eBay can present challenges in terms of trust. It isn’t always easy to know who you are really dealing with at the other end of the screen.

Providing you can trust a seller, eBay can provide options to purchase collectible coins as well as other types of precious metal items. You may have to make considerable effort to ensure that the product being sold is genuine.

4. How Do You Store and Insure Your Precious Metals?

Investors may have to spend extra money to store and insure their physical precious metals. For $700 – $1,000 , a safe can be installed in your home to store your precious metals. It is best to purchase safes that have been given good ratings. Such safes may cost more than other safes.

Precious metals may be added to the contents policy. This can cost additional premium. Proof of purchase will be required to make a claim for the precious metals.

5. Bullion Coins or Bullion Bars?

In many cases, bullion bars prove to be easier to buy and sell than bullion bars. Half a stash of bullion coins can be sold more easily than half a gold bar. Coins are divisible, allowing for easier transfer of value.

It is also important to consider the weight and fabrication costs of bars. Larger gold are usually priced lower due to smaller fabrication costs associated with them. Gold bars usually cost less than smaller weight gold coins.

6. What are the Differences Between Bullion Coins?

Bullion coins come in different varieties. Types of bullion coins include the Isle of Man Angels, Chinese Pandas, and Canadian Maple Leafs. Bullion coins may be available in silver and platinum , which many governments have a penchant for.

7. What are the Different Types of Precious Metals?

There are different types of precious metals that exist, providing new use cases for individuals and groups in different sectors. Gold is the most popular precious metal, followed by silver.

Gold attracts the most attention from investors. It is used for different purposes in industries. Central banks around the world use gold as part of their policy objectives.

Silver is a hybrid metal, providing benefits that different metals present. It is a byproduct of lead, zinc, copper, and other metals. While it is not as sought after as gold, it proves to be useful for industrial purposes.

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8. Are Stocks Better than Precious Metals?

Stocks provide advantages which precious metals do not provide. Unlike precious metals, dividends can be made from stocks, allowing for extra income without selling the asset.

Conversely, the income from precious metals is typically gained after making selling the asset. While this may seem like a significant disadvantage of owning precious metals, investors should be reminded of the fact that there are risks associated with owning stocks which owners of precious metals are not exposed to.

9. What are the Tax Implications of Investing in Precious Metals?

Active precious metal investors may be treated as businesses with their profits being taxed as income. Precious metals may be subject to maximum 28% capital gains tax.

It is important to consult with a tax professional in order to gain deep understanding of the nuances of tax laws in relation to precious metal investments. There are different ways to reduce tax obligations which a tax professional can shed light on.

10. Who Should You Buy Precious Metal From?

Precious metals can be obscure in appearance at times with different processes having to be executed to ensure authenticity of the seller and the item. Trusted organizations like Lear Capital make the process of purchasing and selling precious metals seamless, with expert customer service representatives ready to add value to your investment decisions.

To learn more about the quality service provided by Lear Capital for precious metal investors, you may read the reviews of the organization which has handled $3 billion in precious metals investments.

You’ve done your research. You have picked the stocks and markets in which you want to place your money. You’ve even brushed up on the stock market lingo, but you don’t have thousands of dollars to drop. Good news, you don’t have to have thousands to invest.

Making your first investment is an exciting and terrifying task. However, many people are under the impression that, in order to invest, you need to have a lot of money. That is just not the case. In fact, many successful investors have started small and worked their way up. Here are a few ways to start your investing journey small:

Get a plan through your employer

Placing money into a mutual fund or 401(k) through your employer is a no-brainer. There is no minimum required investment for many of these plans. You will simply have it automatically placed into the 401(k) from your paycheck. Many employers also offer a matching contribution as well. Usually you have to stay with the company a certain number of years or have put a certain amount in the 401(k) to have the company match your contribution, however, it is definitely worth it. If you put $1,000 in, the company will put $1,000 in as well, giving you $2,000. Some companies offer a percentage match or up to a dollar amount as well (capping at $5,000, for instance).

Schwab Index Funds

Investing firm Charles Schwab offers five conventional stock-index mutual funds and three bond-index funds. Each of these has a $100 minimum. It has U.S. stock market fund options, international-index fund and bond-market funds. Any or all of the three would make for great portfolio holdings and none of them require a huge amount of money to get started.

Actively managed fund

Some investing firms will waive their regular minimum if you agree to making a recurring deposit. For instance, if you don’t have a lot of money to invest now (only $100), you would agree to have $50 withdrawn from your account monthly for a specific period of time.

Online Brokerages

Online brokerages have made it easy for many people to start investing. With as little as $500, you can open an account. Some online brokerages don’t require any minimum deposit. With these brokerage accounts, there are ways to pay no commission and buy/sell investments for very little money (about $10 is standard).

Acorns Investing

If you have never tried it, Acorns is an app through Intuit. It allows you to create a portfolio based on your investment goals. You can set up recurring deposits or you can start with a small amount (as little as $5). Acorns also allows for a “Round Up” investment. This means that every time you swipe your credit or debit card, the app rounds up and places the change in your investments account.

Any account with only $100 or $1,000 won’t do you much good. If you want to gather a decent amount of cash, you will have to save as much money as you can. When you have extra money, place it towards your investments.

Do you have any additional funds or investments that don’t require a high minimum? Let us know! We’d love to hear from you.

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Amanda Blankenship

Amanda Blankenship is the Director of Social Media for District Media. In addition to her duties handling everything social media, she frequently writes for a handful of blogs and loves to share her own personal finance story with others. When she isn’t typing away at her desk, she enjoys spending time with her daughter, husband, and dog. During her free time, you’re likely to find her with her nose in a book, hiking, or playing RPG video games.