With the prices of gold and silver at record highs, investors will need to be especially safe and strategic in their approach to the metals now.
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If you haven't yet invested in gold or silver in recent years, you may want to reconsider.
Prices of both assets have surged in recent years, with both surpassing new records just in the past few weeks. That offers new investors a rare opportunity to buy and sell the metals for a quick profit. But it also underlines the importance of taking action now. Waiting too long could cause even experienced investors to get priced out, perhaps permanently.
Still, gold and silver don't perform the same way traditional assets do. So taking a conventional approach in today's climate not only may be a mistake but it could prove to be a costly one, too. Fortunately, there are still ways in which investors can safely invest in both metals now, allowing them to benefit from these recent price surges while still protecting their wider portfolio. Below, we'll detail three ways to safely invest in gold and silver now.
Start exploring your top gold and silver investing options here.
How to safely invest in gold and silver now
Don't rush into a precious metal investment in today's economy before first knowing the safeguards. Here are three ways to securely get started now:
Understand which types are riskier
There are multiple gold and silver investment types to consider. These include IRAs, ETFs, stocks, bullion (in the form of bars and coins) and more. Each has its own pros and cons and safety risks to account for. For example, gold mining stocks or futures generally require more knowledge of the asset than a simple gold IRA does.
Accordingly, take the time to understand which of these types are riskier and which can more safely accomplish your investing goals. With prices on gold and silver higher than ever, it's more important than ever to choose the right types to invest in.
Compare your current gold and silver investment types now to learn more.
Consider splitting your investment dollars
Gold is exponentially more expensive than silver is now. So it may be tempting to skip the former for the latter entirely. But there are still affordable ways to get invested in gold, from fractional gold to dollar-cost averaging and more. Ideally, you'll want to be invested in both then.
Consider splitting your investment dollars equally to get both added to your portfolio. This will wind up getting you more silver than gold, but it will also have you invested in both so that you're best positioned to benefit from the next price rise either metal experiences. In other words, you'll be limited with each but still be invested enough to see material benefits, hopefully in the short term.
Keep it limited to 10% of your overall portfolio
Don't forget the conventional precious metal advice, even now: Keep it limited to a maximum of 10% of your overall portfolio. And that doesn't mean 10% in gold and 10% in silver. It means 10% total. At the same time, it may not mean 5% of each, either, as each investor profile and individual goals are different.
Just don't overinvest in either metal at the same time. You'll still want stocks and bonds to perform as intended, and that will be harder to do if you have too many precious metals in your portfolio. Remember that precious metals act more effectively as portfolio diversifiers versus portfolio boosters, even now during the current gold and silver price craze.
The bottom line
Gold and silver are worth more than ever, and the potential investment opportunities are more profitable than ever, too. To realize this potential, however, prospective investors shouldn't disregard the conventional safety measures, either. That means taking the time to understand which investment types are specifically riskier than others, splitting investment dollars to get started with both and maintaining an overall limit of 10% of your overall portfolio. By taking this measured approach, investors can potentially benefit from both gold and silver during this record price run and, hopefully, for many months and years still to come.
Edited by Angelica Leicht
