Buying gold and silver can be one of the most stable, and effective ways to protect your wealth from fluctuations in fiat currency values.
However, no investment can be made without understanding the risks involved first. That holds true for gold and silver, too.
So keep reading to learn more about the top metal investment mistakes to avoid. It will only take a mere fraction of your time, and not a single dollar will be lost – we promise.
1. Not Performing Research & Due Diligence
It is normal to want to ask family and friends about what they know with any new investment you are trying to understand. It is likely that you have tried to do some superficial research on the web, too.
These types of information sources are not the most reliable when it comes to precious metal investing, though. Often family, friends, and news websites are heavily opinionated and lead to metal investment mistakes.
In order to understand metal investment strategy, you need time to do deep research. Seek out investor groups on LinkedIn and Facebook and start making connections.
Don’t forget to verify sources when reading financial and market news.
2. Falling For Irreputable Dealer Scare Tactics
Unreputable precious metal sellers are easy to spot nowadays, especially with internet user ratings and reviews. Always check a dealer’s website, address, contact information, and online reviews. They will often give you more than enough information about their business practices.
Don’t ever fall for claims of government confiscation of physical metals, either. Gold and silver are and have remained real money for centuries. If the federal government is about to confiscate the physical gold and silver of the public, it will not go unnoticed.
3. Harboring Unrealistic Expectations
Buying gold and silver requires patience. The historical return on investment is positive, but gains happen over time – not overnight.
If you are looking for short-term earnings on your investments, it may be better to look elsewhere. If you understand the historical value that gold and silver have during times of fiat currency crisis – then you are already thinking ahead.
4. Over-Diversifying Your Portfolio in Metals
When you first invest precious metals into your portfolio, it might feel right to over-diversify. Why is this? Mainly because gold and silver are historically positive stores of value for your money.
However, as you learn more and more about the time frame to see returns on precious metals, you will better understand why they shouldn’t dominate your portfolio.
If you need cash flow in the short term, then you want your portfolio diversified in various stocks, bonds, ETFs, and mutual funds. Remember, buying gold and silver is for the long-term investor.
5. Attempting to Time the Market & Chase the Price
As a newcomer to buying gold and silver, you want to avoid metal mistakes, but you also want to see a positive return on investment. Don’t trust the strategies of dodgy market players who believe they have uncovered the next big move in the gold or silver markets.
Perform your own due diligence and devise a strategy that works best for your own trading temperament. When you put a strategy in place, step back and monitor the results. A precious metals strategy is not measured in days, weeks, or even months.
Take Your Time And Avoid Metal Investment Mistakes
With these metal investment mistakes on your radar, you can avoid the most common pitfalls for any new precious metal investor. Again, you must be able to verify your market research sources and always seek out the help of a professional financial advisor when appropriate.
Don’t forget to take a deeper look at other great news and information from the financial section of our blog – see you there.