All types of investing involve risk, including precious metals. This chart shows some of the major choices you have for investing in precious metals based on risk:
| Type | Relative risk level | Most common direct type of risk |
|---|---|---|
| Bullion coins and bars | Low | Market, physical |
| Numismatic and collectible | Medium | Fraud, physical |
| Major mining companies | Low-medium | Market, political |
| Midsize mining companies | Medium-high | Market, political |
| Junior mining companies | High | Market, political |
| Mutual funds | Low | Market, political |
| Exchange traded funds | Low-medium | Market, political |
| Futures | Highest | Market, exchange |
| Options: covered call writing | Low | Market |
| Options: buying calls and puts | High | Market |