Precious Metals Investing Strategies Create Proven Long Term Growth

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Investors recognize the tangible assets of gold, palladium, platinum and silver as important hedges against volatile markets and other trading instruments. Precious metals investing strategies are used by investors because the specific commodities market tends not to respond the same as others, including stocks and bonds.

When investors first consider precious metals for diversification, they tend to turn to gold bullion bars and coins. However, palladium, platinum and silver also serve as highly effective diversification options that bring with them proven substantial benefits. Financial advisors often recommend that the investor allocate portfolio dollars evenly across all four precious metals that include gold, palladium, platinum and silver.

Precious Metals Investing Strategies
Proper investment strategies that involve precious metals are most effective when they are used as short, medium and long-term growth potentials. This distribution strategy maximizes investment dollar performance and tends to be the most profitable tactic used in the long term. It provides the investor the opportunity to secure their financial future while enhancing the overall performance of their portfolio.

The short-term strategy base for growth potential is a conservative investment tool that can produce significantly quick returns. This type of precious metals investing strategy holds gold, palladium, platinum and silver bullion bars and coins for up to three years. Timing purchases using the strategy is critical to ensure that all precious metals bought are made at the appropriate price.

Financial advisors are indicating that the value of gold, palladium, platinum and silver is expected to rise significantly in the next 24 to 36 months. This fits in well with a short-term strategy that will enhance the growth potential of a diversified portfolio. If the investor is managing up to 15% of their total value of the portfolio, then 30% to 40% of that amount should be allocated to short-term precious metals investing.

A medium-term growth potential strategy can produce high returns. This type of precious metals investing holds gold, palladium, platinum or silver bullion bars and coins from between two to five years. This type of strategy involves allocating up to 20% of the total value that is invested in precious metals as a medium-term solution for diversifying a portfolio. Additionally, investors can purchase rare coins and precious metal currency coins also.

A more aggressive approach can be taken using a long-term precious metals investing strategy to increase a high rate of returns. This type of strategy involves holding bullion bars and coins of gold, palladium, platinum and silver for at least five years. By allocating up to 40% of all of the tangible assets in the portfolio, the investor can reap the highest returns by holding onto these precious metals for a decade or longer.

The historical numbers on long-term investing in precious metals indicates that it produces the highest rate of returns per year. Because of the current restricted supply of gold, palladium, platinum and silver, along with the increased demand, prices are expected to catapult for at least the next decade.

As a Hedge
While any type of investment has its risks, precious metal investing strategies are effective at hedging against inflation and the declining US dollar. Historically, investing in gold, palladium, platinum and silver in the long-term has proven significant gains with little pain.

The price of all four top precious metals has risen significantly over the last seven decades. The demand for gold, palladium, platinum and silver has never been higher worldwide, especially now that automakers are utilizing the precious metals in their manufacturing. Even the electronics world is using these four precious metals because of their anti-corrosion and high conductivity properties.

The future has never been brighter for precious metals investing.