Precious Metals - How much Should I Invest?

This by far is one of the most frequented questions regarding investing in precious metals. The second most frequented question is what should I invest in? gold, platinum, silver or all three. I obviously do not know every single persons financial situation and each one of us is different but there are a few things that we can touch on that may help make these decisions easier.

1. The very first thing we need to do is get out of the mindset that we are "buying". I like to think more like we are converting paper assets into solid physical assets. We are not spending money on a product but we are merely transferring into something safer with the hopes we beat out inflation.

2. Come up with a single dollar amount that you can afford. Again, each individual's financial situation is different so take some time to figure out your finances. Remember you can always start out small and work your way up. So set aside a dollar amount that you are completely comfortable with and stick to it.

3. Now that you have money to spend, your next question is going to be what type of metal do I invest in? Since we are going for safety and diversity were are going to focus on bullion.

-Platinum (Per oz this metal is the most expensive)

-Gold (Per oz this metal is comes in 2nd place, slightly less expensive)

-Silver (Per oz this metal comes in third and is significantly cheaper)

Personally I believe you should invest in all three. 60% in gold, 30% percent in silver and the rest in platinum. If you are starting out small, you can invest in fractional amounts of gold/platinum (by the gram). Silver is very inexpensive and can be easily invested in higher quantities (oz, pounds) If you have a significant amount of currency set aside, investing in platinum/gold (by the oz or higher)is an option as well. The prices change often, so do your homework.

Again some individuals financial plans may very, this is just the formula that works for me. Be sure you always do your research before purchasing because investments always carry some risk. Hopefully this article will help some of those potential investors that are confused.

-Blogging4Bullion

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