Even as the stock market continues to rise following the onset of the COVID-19 pandemic, experts warn of an impending recession. During these slow economic times, many investors turn to precious metals as an affordable buy that can pay dividends in the future. But what if you’re stuck at home due to quarantine?
Fear not. The ability to buy precious metals is available, even if you aren’t physically holding them. So, whether you’re looking at silver, gold, or platinum, you have resources to purchase them without ever leaving the house.
Silver is perhaps the most intriguing buy during a perceived recession or quarantine. Typically, silver drops dramatically during a recession, making it an excellent investment compared to stocks and options.
More interestingly, silver has a dramatically wide array of purchase methods and a relatively low price to other precious metals, allowing investors with all types of budgets to purchase. As a rule of thumb, look for silver to hit a gold-to-silver ratio of 80:1. When gold hits this ratio to silver, silver becomes a certain buy.
Coins, rounds, bars, and bullets are readily available over the internet. Plus, you can buy silver bullion online using systems such as wire transfers. We at London Coin Galleries of Newport Beach have helped many new and existing investors purchase what they need electronically and arrange for a pick up.
Gold has more volatility during a recession and possibly during quarantine. In addition, its higher value may only attract investors with a higher budget and willingness for risk. But those prepared to take the risk can often make more money once gold prices return to normal.
During quarantine, buying gold is a simple venture. Contact us to purchase physical gold with either a wire transfer or credit card. Remember that investment-grade gold needs to be at least 99.5% purity.
In addition, investors can purchase gold options and futures as a way of speculating on the market value.
Platinum is another precious metal with both industrial and investment applications. Yet because platinum is rarer and often comes in purer forms, it often garners more value than most gold investments. Like gold and silver, platinum is easily purchased via wire transfer or credit card via the internet.
Because of the industrial applications of platinum, the metal is often in far less supply. Thus, the prices can incur a certain degree of volatility. Still, the upside during a quarantine is present, giving investors the opportunity to make profits following the pandemic.
Precious Metal ETFs
Investors that are apprehensive of holding physical metals or purchasing them online may want to look at precious metal ETFs. Also known as precious metal exchange traded funds, these ETFs allow investors to purchase precious metals without ever physically handling them. Silver, gold, and platinum all have their own ETFs, and may come in both managed and unmanaged variants.
Precious Metal ETFs work by tracking the price of a metal on an index. Despite never handling the metal, investors gain exposure to price fluctuations, and can make a profit by buying and selling the ETFs over time. Typically, investors can fund these accounts through a bank transfer, wire transfer, and sometimes, credit card.
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While precious metals aren’t impervious to value fluctuation, they can offer a tremendous profit and upside in times of uncertainty. As with any other investment, risk is always an issue. Make sure to conduct proper research before purchasing them. But if you have the right mix of precious metals and the ability to trade them, you might find that this investment will pay dividends well into the future.
At London Coin Galleries we help everyone buy, sell or trade coins, bullion, scrap metal and many more rare antiquities. Our schedule has changed during this time but we are always available by appointment. Whether you want to sell or buy, contact us to book an appointment so we can provide you with the time required to handle your transaction.