HOW & WHERE PRECIOUS METALS ARE TRADED

In times of economic uncertainty, with the fear of a recession looming, precious metals provide peace of mind. They have been used as a method of exchange between traders as well as a storehouse of wealth, most commonly with gold. If you’ve decided to invest in gold, silver, or other precious metals, you may be wondering how to trade them should the need ever arise. A few tips will help you determine the best course for how to trade precious metals. 

HOW TO TRADE PRECIOUS METALS SUCCESSFULLY:

DO YOUR RESEARCH. 

No matter what your venture may be, the most important thing to do is always research, research, research. Once you’ve determined that you’d like to invest in precious metals, you need to know which form of investment is your best bet. You can invest in precious metals mutual funds, shares in mining companies, or even just buy units of gold or silver like the kind we offer at Nationwide. In addition to gold and silver, platinum and palladium are two other types of precious metals that might interest you.   

CONSIDER THE FINANCIAL ASPECT.

By that we mean the fees associated with your method of investment. If you decide to go the route of a managed mutual fund, you’ll discover that management fees can be quite significant. Working with brokerage accounts may be more costly than you desire. You can also engage in an exchange-traded fund, in which the fund’s equity is traded on the stock exchange. The most activity in this market takes place in New York and London. 

Lastly, if physical assets are important to you, you may need to invest in storage, such as a unit or even a safe at home. 

OWN YOUR PRECIOUS METALS. 

Speaking of physical assets, if you own a great deal of precious metals, you may need to invest in the use of a special vault with unique custody arrangements. The last thing you want is to put your precious metals in a location that can’t be trusted. Insurance is also an important factor to consider here. 

WHERE ARE THE MARKETS:

The markets will differ based on location. In the United States, the four most significant precious metal organizations and associations are the Commodity Future Trading Commission, the United States Mint (of course), the American Numismatic Association, and the World Gold Council. 

In London, precious metals markets don’t have a central exchange to coordinate trade. All trading is done on a private basis. But in other parts of the world, this is not the case. The Shanghai Gold Exchange, for example, offers a centralized market where you can trade gold and silver bars.

Technology is another factor in the modern age. An emerging technology that’s relevant to how precious metals are traded is the use of blockchain technology to promote the efficient transfer of goods. 

INVEST IN GOLD BARS OR COINS. 

One of the most valuable tips for how to trade precious metals is to consider the easiest way to assess this market overall. That way is through gold bars. Throughout the world, you’ll find gold bars in numerous sizes at differing values. At Nationwide, you can purchase 1-ounce gold bars, also known as one troy ounce. 

It’s not just gold bars. If you’re looking for a more direct investment, you can also purchase gold and silver coins. Depending on when the coins are minted, some can attain astronomical heights of value. Both bars and coins can be traded and invested in private markets as well as certain agencies that specifically deal with precious metals. 

Whether or not the economy is headed for trouble, a diversified portfolio is of the utmost importance to spread out the value of your assets in case of an emergency. How to trade precious metals is a valuable tool in your arsenal of economic knowledge. If you’re interested in adding precious metals to your portfolio, browse our selection of gold bullion. If you have any questions, our experts are always on standby to help you find the best precious metals for your needs.