Most of the information you read about investing in precious metals will assume that you have a decent amount of money to start with. In fact, quite a bit of the information you’ll read will assume that you have at least a few thousand dollars to invest. For some investors, a few thousand dollars really isn’t much. For other investors, it may take years to save up that much money. If you’re of the latter type, and you’re interested in investing in precious metals, you’ll want to make certain that you do it in a way that is actually affordable to you and that doesn’t put you at such a high degree of risk that you might end up losing far too much.
If you want to start investing in precious metals in a way that doesn’t actually constitute gambling with what little money you have, you need to take a look at which metals will be affordable for people who don’t have a few thousand dollars, or even $1000, to invest. This means that you’re going to be looking at palladium and silver, in all likelihood. Metals are easily divisible, so you can always purchase a smaller quantity of a more expensive metal, as well. For example, you can buy gold and platinum in quarter ounce masses, which makes them more affordable.
One strategy you can use to get started is simply to start with the least expensive metal possible and to purchase a little bit when you can afford it. For example, you might decide to start purchasing silver and, to make it affordable, save up $25 or $50 from each of your paychecks and then make an order of silver when you have $100 or $200 to spend. This strategy allows you to get your hands on the metal without taking too much risk.
One of the ways that this form of investing in precious metals does help to minimize risk is simply because you’re not putting a lot of money up front. You’re doing it in small increments, so if you decide that it’s not for you, it’s a lot easier to just go cash out your metal and get out of it.
If you don’t have a lot of money, one of the things you’ll find about investing in precious metals in this way is that it’s relatively painless. In fact, after you’ve purchased enough metal that you feel that you’re sufficiently invested in the market – and don’t feel odd if being sufficiently invested in the market for you only means $500 or $1000 – you can just forget that you even have the metal in think of it as something of a savings account. You can put it in a safe, put it in a safe deposit box or put it in any other secure location and just hang onto it.
Precious metals tend to accumulate value over the long haul. If you don’t have a lot of money, you may want to consider investing in metals as a way of growing your wealth gradually, rather than cashing in on the very impressive performance metals have had in recent years.