Choosing to Buy Paper or Physical Precious Metals

When most people think of purchasing precious metals, visions of gold and silver
coins leap to mind
What a lot of people don’t know is you can play the precious metals market for a
short or long-term investment without taking possession of any physical metal
The following are physical and “paper” methods of investing in precious metals:
o ETFs - Precious metal ETFs (Exchange Traded Funds) usually
focus on gold, silver, and/or platinum
o Mutual Funds, IRAs and Stocks - If you want to invest in precious metals as an
industry move, rather than taking physical possession of your investment, consider
common stocks, IRAs, and mutual funds
o Futures and Options - Futures and options are extremely risky for the beginning
investor. Unless you have extensive knowledge of trading stocks, futures, options,
and commodities, you should steer clear of this type of precious metals investment.
o Bullion and Coins - These are the physical forms precious metals take. Some gold
coins become extremely rare overtime, and supply and demand drives their prices
up because of the gold content in the coin, as well as the rarity of the coin itself.
The most common physical form of precious metals is bullion. An industry definition
of bullion is "a refined and stamped weight of precious metal." Bullion is generally
offered in bars or ingots, and sometimes in a round form that resembles a coin.