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Published:
February 5, 2008

Precious Metals Investing For Dummies

Overview

In recent years, metals have been among the safest and most lucrative investments around, but they are not entirely risk free. Before you begin investing or trading in metals, you need authoritative information and proven investment strategies. You need Precious Metal Investing For Dummies.

This straightforward guide eases you into the precious metals market with sound advice on trading and owning these profitable investments, including gold, silver, platinum, and uranium, as well as high-demand base metals such as zinc and copper. You’ll learn how to research their market performance and choose among an array of proven trading plans and strategies. Plus, you’ll get savvy advice on how to choose a broker, buy stocks and futures that involve metals, maximize your investment return, and minimize your risk. Discover

how to:

  • Evaluate the different metals
  • Add metals to your portfolio
  • Decide whether you’re an investor or a trader
  • Identify your metal-investment goals
  • Weigh the risks and benefits of metals investing
  • Buy physical metals
  • Use technical analysis to evaluate opportunities
  • Make long-term investments in precious metals
  • Diversify your metals investments
  • Analyze base-metals companies
  • Purchase numismatic coins
  • Add metals to your mutual fund or ETF portfolio
  • Understand how politics effects metals prices

Metals can be an important and valuable addition to any investment portfolio or retirement plan. Make the most out of your investment with Precious Metal Investing For Dummies.

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About The Author

Paul Mladjenovic is the owner of Prosperity Network and www.Super MoneyLinks.com. He is also the author of Stock Investing For Dummies, 2nd Edition.

Sample Chapters

precious metals investing for dummies

CHEAT SHEET

Before you invest in precious metals, ask yourself some questions to understand what kind of trading style you have and define your trading objectives. Use proven investment strategies to manage your risk and understand the types of investing you can do in precious metals based on risk. Also ask your potential investment broker some key questions during an interview.

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Articles from
the book

Before you start investing or trading in precious metals, you need to understand the concepts of saving, investing, trading, and speculating; otherwise, the financial pitfalls could be very great. The differences aren't just in where your money is but also why and in what manner.Right now, millions of people live with no savings and lots of debt, which means that they are speculating with their budgets; retirees are day-trading their portfolios; and financial advisors are telling people to move their money from savings accounts to stocks without looking at the appropriateness of what they're doing.
Unless a family or close friend refers someone you can trust to do your investing, you’re going to have to research some investment brokers. Ask these questions which merit some answers: How many years of experience do you have working futures? You would like three or more years (but not 87). Do you have an area of futures that you specialize in?
Risk is necessary for investment success and knowing how to manage risk when investing precious metals is something that you can profit from. Try these proven strategies when investing: Buy the dips. If you bought what you think is a great stock and its price drops, if possible buy some more. If your research and logic tell you it’s still a solid investment, buy some more.
Say you want to get involved in the stock market and you open a stock brokerage account. Say your initial investment is $20,000; what will you do? Many investors will probably invest all or most of it immediately. You sure don't want to miss that gravy train leaving the station for "fabulous-profits-ville" do you?
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, phys
Long before government-issued currency existed, people relied on bartering to obtain the things they needed (unless you were a barbarian and preferred plundering). Civilized merchants and consumers traded goods and services, but trade did get cumbersome. For example, what if the food merchant didn't really want your 47 pounds of lint in exchange for a head of lettuce?
Before you invest in precious metals, ask yourself some questions to understand what kind of trading style you have and define your trading objectives. Use proven investment strategies to manage your risk and understand the types of investing you can do in precious metals based on risk. Also ask your potential investment broker some key questions during an interview.
Some investing questions can only be answered by your own preferences and trading objectives, not by research or professional guidance. Before you begin trading in precious metals to meet your financial goals, address the following issues: How much “risk” capital will you be “playing the trading game” with? What is your outlook on the asset in question (bullish, bearish or neutral)?
In the summer of 2006, precious metals, energy, and other commodities experienced a correction, or a temporary pull-back in their prices. Gee, why say correction? It sure as heck doesn't feel correct (it feels pretty incorrect, actually). A correction is a temporary, normal, and healthy part of a bull market. Sure, it might make you flinch when you see your investment go down 10 percent or 20 percent.
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Frequently Asked Questions

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