Precious Metals Investing Vs Stock Market Investing

In terms of investing, many people take their money to the stock market. Investing in the Stock Market is a popular choice, but there is an investment alternative in Precious Metals. The fluidity of metal values and their supply around the world helps solidify investor confidence. It is nevertheless important to understand the differences between stock market investing vs. Precious Metals investing so you can be better informed of the decisions at hand. 

There are important differences for an investor to understand in order to make a sound purchasing decision. Here are a few areas where the Precious Metals market differs from the stock market:

  • Equities vs. commodities
    Stocks found on the stock market are equities. In other words, stockholders own a small or large portion of the company the stocks are in. Conversely, Precious Metals are commodities. This ensures the investor holds a physical metal product. Investors in Precious Metals make money when the demand for the metal increases and the spot prices go up. 
  • Both markets are not tied to each other
    Both are wholly separate entities that do not affect one another in terms of performance or value. Historically, Precious Metals markets move in the opposite direction as the stock market, giving investors a viable option in case the stock market is weak. 
  • Variety differs because there are flexible options
    There are four primary Precious Metals to invest in: Gold, Silver, Platinum and Palladium. Even among the different Precious Metals, there are secondary market metals that can act as a buffer in case the Gold, Silver or Platinum price dips below performance standards. These secondary market products tend to carry lower premiums and thus carry less risk than new metals items. There are no secondary stocks in which to invest. The variety of Precious Metals helps your valuable money in a product that has historically rebounded quickly. 
  • Precious Metals are not tied into a company or entity
    There has long been a history of investing in Precious Metals, even before the stock market existed. Performance in Precious Metals is based solely on social and political factors, and the supply and demand of the metals, not on how the company or entity performs.

The intrinsic value of the Precious Metals market is something to behold because there is no other physical or non-physical entity that has as long of a track record of investing.

APMEX recommends discussing the pros and cons of investing with a financial advisor or professional.

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