Official sources in many countries are assuring the public that their economies are recovering well, although many investors react with some skepticism. Quantitative easing and other emergency policies are still in place, even though the U.S. government assures people that the economy is showing promise. If this were the case, would QE still be needed?
Becoming Money Wise
Smart money is still on precious metals investments in 2014, particularly in gold. The gains of gold tapered off in the last quarter of 2013, so gold still has room to rise again, because the economic conditions that created the rise haven’t changed.
Perceptive investors do expect QE to end in the near future, which will also remove inflated bond prices. The end of QE also means that the short-term relief felt by many industries is over, as are assistance programs that ran on credit from inflated U.S. currency.
Investors understand that gold will serve them well, as a crutch for hard times and as a hedge against speculative investments. They fully expect gold to return to a growth stock that will once again be a valuable part of precious metals investments for a good portfolio.
Investing in Gold with Exchange Traded Funds
Exchange traded funds, or ETFs, give investors a chance to immediately diversify their portfolios, while still having liquidity like stocks do. ETFs combine the most advantageous characteristics of stocks and mutual funds.
ETFs can be traded like stocks and are sometimes used as short-term investments, even as they are used for long-term investments. Some ETFs hold gold in underwritings only, and other ETFs include precious metals investments, like silver, copper and platinum.
ETFs have holdings that generally consist of companies associated with precious metals, rather than holdings in the physical metals. There are ETFs that are based on bullion, too. If you wish to invest directly in metals, buying bullion may work better for you.
Gold bullion can be held through certified proxies, since individuals in many countries cannot legally hold bullion in their residences. This strategy has advantages, as well as disadvantages. If the current economy experiences a double-dip recession or complete correction, bullion will gain more value than other precious metals investments.
If you wish to hold bullion, contact a reputable proxy will keep you apprised of any government plans for bullion. Proxies have communication with the government and they can let you know about movements the government might make. If you are uncomfortable with the politics of investing directly in bullion, you may want to look into investing in collectibles.
Collectible items made from the highest quality gold are direct precious metals investments that will hold their value and build it, as well. Their value will increase as the precious metals become more expensive. Well-informed collectors will choose a collectible market that is very liquid, in case they decide to sell. Some collectible items can also be used in everyday life, like Rolex watches. They are excellent precious metals investments and can also be worn daily.
Coins are also collectible investments. Regardless of the activity of the market, collectors of gold coins may buy your coins if you need to sell them. The problem for you as a seller in this situation is that collectors usually get very good deals, and you may not get as much money as you would like for your coins.
Regardless of the way you invest in gold, understand that many experts feel that gold will be a good method of precious metals investments for 2014. If you are smart enough to buy ahead of the curve, the main issue is how you can cement gains without having to work to obtain them.