How Your SME Can Invest in Precious Metals

Nov 10

There are many good reasons for individuals and companies to invest in gold, silver and other precious metals. It provides less risk than investing in other commodities such as stocks and property, there are many safe ways to store it and with prices changing all the time making a profit can happen at any moment.

Investing in gold or silver requires less starting capital than many other opportunities, which makes is a good option for any small business with surplus profits. If enough has been put to one side and reinvested in your company then there are many ways to invest the rest in gold and other precious metals.

Physical Gold

Buying physical gold bullion or coins is the most popular way to invest in precious metals. There are many online services as well as traditional dealers that offer the opportunity to buy and sell easily. With a little bit of online research, you could find gold standard bank info and other similar services that trade in precious metals. Most of them have apps as well as online stores where gold and silver can be bought at the click of a button.

Having secure storage is a necessity, whether it is in a safe on your business’ premises or kept within the gold dealer’s vault. This is for security and insurance reasons, as it is unlikely your insurance will cover gold if it is stolen.

ETFs and Futures

Exchange traded funds (ETFs) track a commodity, in this case gold. They have a high liquidity and experience price changes throughout the day while requiring a much lower starting investment than buying gold outright. If this is to be a long-term investment, you can get an ETF savings plan (ETF Sparplan Vergleich) and keep it your funds safely stored in it away from your other investment funds.

Futures allows your company to speculate on the changing price of precious metals and make a profit from guessing changes in the market right. It is the agreement for the delivery of gold or silver in the future at a pre-agreed price, meaning if the value has increased you make a good saving. However, if it decreases you can end up losing money.

Silver

Silver is a lot cheaper than buying gold physically or otherwise. It can be invested in through futures and ETFs but for small companies buying directly is the safest choice that should lead to an increase in value later on.

Be sure to buy silver from somewhere that it can be stored securely in a vault, so there is no chance of losing such assets. What your company decides to invest in will depend on the finances available and how much risk you are prepared to place on the investments.