Investing in Precious Metals: a Beginner’s Guide 

Investing in precious metals can be both a very interesting and intimidating hobby. The pastime itself carries the potential to benefit investors. And for experienced investors, especially, understanding the precious metal market isn’t difficult. For newcomers, however, it can be daunting. Even thinking about investing in precious metals is enough to turn an interested individual away. And chances are, you’re probably one of those individuals, too. You deliberately think it over. But every time you consider investing in precious metals, you shun the idea away. There doesn’t seem to be any point in actually trying when you have little to no knowledge about the market. 

If you’ve ever felt this way, don’t feel disdained from investing in precious metals. Every investor that started precious metals trading had to start somewhere. And that meant having to start with no knowledge whatsoever. Much like you right now, beginner investors have researched online for guides explaining how to buy and invest in precious metals. They had to start somewhere in order to get good at investing in precious metals. And today, you can start getting good at investing in precious metals, too, as you read through this guide.

William Youngerman is one of the most experienced industry professionals in the precious metals market. His experience in investing began as a young child when he developed a fascination with coins. With the value coins possess, especially coins fabricated from precious metals, William Youngerman knew his passion could benefit him financially. Which is why he eventually worked his way up to open his own coin store in 1967, William Youngerman Inc. Since his grand opening, William Youngerman has helped customers develop their interest in investing. And we’re not just talking about coins.

William Youngerman has a huge inventory of precious metal products. No matter if you’re interested in investing in gold coins or gold bullion, William Youngerman can help you.

When you’re ready to invest in precious metals, continue reading below. We’ve prepared the ultimate guide so that you can start investing right away!

Should I Invest in Precious Metals?

It’s the most important question you should ask yourself before you begin. And quite honestly, there’s really no right or wrong answer. We’re not going to tell you that investing is an absolute must. And this is because investing in precious metals isn’t for everybody. And when we say it isn’t for everybody, we’re not ruling out people who are less financially competent than most others. 

Investing is more than just a hobby, it’s a lifestyle that can bring one either great success or failure. Being an investor means you must be avidly aware of what’s taking place in the market. And for precious metals, especially, you have to be mindful of both the advantages and the risks that accompany such investments. 

There are accurate predictions that just about anyone can make in any market. And many of them turn out to be true. But like any market, no one is able to be 100% sure of what is to come. For this reason, you must be aware of the factors that can steer the precious metal market to success or failure.

Things To Consider

There are many factors you must be aware of when partaking in precious metals trading. There are so many, in fact, that we couldn’t possibly list them all here. However, some things you need to consider include what the bears and bulls say.

What Bulls Say (The Argument For Precious Metals)

It’s widely believed that precious metals will keep their intrinsic value. Such a belief is so popular that it’s very likely you don’t even know a single person who would tell you to not invest in precious metals. And the same enthusiasts that believe this will probably tell you that investing in precious metals, such as gold or silver, will help keep your portfolio balanced. And they’re very likely right.

Precious metals have a history of holding their value over the years. Individuals have been investing in gold, for instance, as a way to preserve (and potentially even increase) their wealth from one generation to the next for a long time. And this is due mostly to the fact that, since ancient times, people have valued this metal for its unique properties. Gold never corrodes, has a sheen appeal, and it’s easily malleable over a common flame, which is why gold coins and jewelry exist.

While precious metals are volatile, countless investors believe that investing in gold, silver, platinum, and palladium will prove to be an advantageous, long-term investment in protecting against inflation.

Despite the volatility in gold and silver prices, many investors believe that, long-term, precious metals trading will be effective in protecting against inflation. Ultimately, precious metals are recognized as a safe-haven investment in an uncertain environment.

What Bears Say (The Argument Against Precious Metals)

Though it’s widely-believed that precious metals are a safe investment, others have indicated that such an investment isn’t that useful. In fact, they’ve even stated that there’s virtually no point in investing in precious metals.

Bears have stated that economic collapse is very unlikely. More so, as history indicates, collapsed economies have reverted to bartering, not precious metals. So even if an economic collapse were to occur, survivors will probably be more interested in useful goods as opposed to ornamental metal.

Generally, while experts agree that there are plenty of advantages to precious metals trading, there are downsides, too.

The Verdict

There’s no certainty whatsoever indicating if investing in precious metals is advantageous or futile. Just like any investment you make, only time will tell if the decision you made will prove to be beneficial or not. When you’re investing, you’re going to take a risk no matter what. 

So if you don’t like the idea of investing without a financial safety net, we hate to say that there’s no reason you should continue reading. If, however, you feel that partaking in precious metals trading may prove to be worthwhile and you’re willing to take some risks, then continue reading below.

How Do I Begin Investing in Precious Metals?

First, it’s important that you recognize what your goals are before you begin investing. By doing so this helps you determine the investment options you can choose to help you achieve what you want. Determining what sort of investor you are is usually a good start in helping you recognize what goals you desire. If you are a value investor, for instance, then you believe that the value of precious metals is far greater than what the market deems it to be. 

There are many different types of investors. Quite a few, in fact, that it’d be a bit too much to mention here. For this reason, we encourage you to do your own research into different types of investors and see which one best matches your profile.

Next, you need to keep in mind that this is something you shouldn’t go all in for. If you have the mindset that you’ll make riches simply by investing in precious metals, you should stop reading this immediately. While the value of precious metals are known to retain their values and also carry the potential to increase drastically, this doesn’t guarantee anything. Precious metals, such as gold and silver, are most popularly collected as “emergency currency”.  Investing a large amount of your funds into precious metals could possibly prove to be a worthwhile investment. But it can also prove to be a dire one. For this reason, you should only purchase a few precious metals or just a small amount of one type of precious metals.

As a first time investor (even as a professional investor) you should always keep your portfolio diverse. It’s typically recommended that when you invest in precious metals, such an investment should only take up roughly 3% of your portfolio.

Where Do I Buy Precious Metals

Now that you’re ready to begin, there’s the important question that must be addressed:

Where Do I Buy Precious Metals?

You may have seen one as you’re watching TV: an infomercial pitching the sale of U.S. coins fabricated from precious metals. And so, if you’ve seen one lately, and remember the phone number they mentioned on screen, it wouldn’t be a bad start to investing in gold, silver, and other precious metals.

There are also numerous online resources for precious metals trading. For this reason, we highly implore you to do your research and see which of these sites work best for you. 

However, if you’re like most, you may find purchasing gold online or even through a toll-free number to be a little iffy. And that’s perfectly okay. For many people, if a product is offered in person, they’ll very likely purchase it right away to ensure a safe and guaranteed transaction.

For this reason, if you happen to have one nearby, we always encourage you to visit your local precious metals dealer. If you happen to live in the Broward County or nearby area, you’ll be happy to know that William Youngerman is located close by.

While William Youngerman is recognized primarily as a coin dealer, he has plenty of precious metals of different sorts for sale. When you contact him and his staff today, he’ll be more than happy to assist you and guide you through the process of precious metals trading.

What Sort of Precious Metals Should I Begin Investing In?

You’re ready to start your newfound precious metals investing hobby. But now you’re left stumped in wondering which of the precious metals you should purchase.

No worries, though! Below are some information on four of the most popular precious metals.

Investing in Gold

Let’s begin with the most notorious of them all: gold. Gold is highly prized due to its rust and corrosion proof qualities, malleability, and its ability to conduct electricity and heat. Gold’s properties are applied a lot in the function of electronics. But its most popular application is perhaps its use as a base for jewelry and as a form of currency.

Gold is constantly under surveillance in the market its value is assessed constantly. And its price is affected very lightly by the laws of supply and demand. This is simply because the mine supply is outweighed tremendously by the size of above-ground, hoarded gold. In simpler terms, what this means is that when investors decide to sell gold, its price drops. When acquisitors are seeking to purchase, a new supply is absorbed and the price of gold is soaring even higher.

Investing in gold is never a bad start for beginners. In fact, if you have the funds, this should probably be the first precious metal you should invest in. It possesses high value and is very popular in the precious metals market.

Investing in Silver

If you’re looking to start small due to a minimal budget, silver is a good go-to for beginning precious metals trading. However, you should be mindful of the fact that silver is a very volatile metal, meaning that its price fluctuates a lot.

Even though investing in silver is done for the same reason that individuals invest in gold (a hoarding investment) the laws of supply and demand actually do influence silver significantly more than gold. 

Silver’s value is factored by supply and demand due to new innovations. Some examples of innovations that boosted silver’s value in the past include:

  • It’s role in the photography industry silver-based photographic film which is no longer prevalent due to the digital camera.
  • It’s use in batteries, microcircuits, superconductors
  • It’s high demand for use in electrical appliances, medical products, and other miscellaneous items.

Developments in already existing applications, such as in some of the ones listed above, may or may not affect silver’s value. However, one fact remains: silver’s value is affected mostly by its innovative applications as opposed to just its use in fashion. If you suspect that silver may be relied on heavily within the next few years, investing in silver now would prove to be a very cost-effective and beneficial investment.

Investing in Platinum

Platinum is often not the best choice for beginners in precious metals trading, usually because of its high price. But if you happen to have the funds for it, it’s not necessarily a bad start. And this is due to quite a few reasons:

Much like gold and silver, investors often opt-in investing in platinum due to its ability to retain its value. And while the prices for platinum will always fluctuate, there’s still only a finite amount of it in the world, so you can expect its value to never drop drastically. It’s also much more valuable than gold due to its rarity; there’s much less platinum than gold in the world. But besides scarcity, platinum is also much more valuable than gold and silver due to its reliance and demand as an industrial metal. Namely, in the auto industry.

Platinum’s properties have been applied in the function of catalytic converters automotive components that are used to reduce the harmfulness of emissions. And based on auto sales and production numbers, the value of platinum could potentially rise substantially later in the future. But be wary, though, some American and Japanese auto companies have turned to recycled catalytic converters. Others have even turned to platinum’s reliable (and sometimes, less costly) sister group metal, palladium.

After the auto industry, platinum’s demand is also high in jewelry. In fact, jewelry accounts for the majority of platinum’s demand. Next to jewelry, petroleum and chemical refining catalysts and the computer industry take up the rest of platinum’s demand.

Other factors that contribute to platinum’s value is its heavily concentrated mining in South Africa and Russia. Due to the heavy mining in these two locations, this increases more potential for cartel-like action that would support or possibly even raise platinum prices.

Investing in Palladium

Palladium is the least popular precious metal compared to the other three listed above. Yet, ironically, it’s also the most valuable. You may be thinking “why is this so?” and “should I be investing in palladium?”

The simplest answer for the first question is that due to its high price many investors often ignore palladium because they find its investment potential too risky, even though its high value is contributed by a wide number of factors. As for the second question, it entirely depends on you.

What is perhaps palladium’s most interesting feature is its denseness. While it is malleable, it can become really strong once it’s cooled with room temperature. Due to this, in 1939, palladium was incorporated into jewelry the first time this has ever happened. In 1967, the Tonga government issued circulating palladium coins depicting the coronation of King Taufa Ahau Tupou IV. This is the first recorded instance of palladium being used in coinage.

Palladium is a very versatile metal. It’s utilized for various sorts of manufacturing processes, particularly for both electronics and industrial products. It’s most popular applications are in dentistry, medicine, chemical applications, jewelry, and groundwater treatment. You will also see sheets of it used a lot in the application of solar energy and fuel cells. However, it’s most popular usage is in catalytic converters as palladium helps to greatly speed up chemical reactions.

Investing in palladium will be costly. Because of its many uses, the value of this precious metal will likely always be kept higher than gold, silver, and platinum. But on the flipside of the coin, because of its many uses, it may not be a bad idea to purchase some palladium. 

Palladium has proven to be much more advantageous than platinum in the auto industry. And its versatility also proves that palladium has many benefits. It may even have more undiscovered benefits for later uses in various other industries in the future. Purchasing some palladium right now could probably prove to be the best precious metal investment ever!

Contact William Youngerman to Start Investing in Precious Metals Today!

If you happen to live in or near the Boca Raton area, and when you’re ready to begin investing in precious metals, don’t hesitate at all in contacting William Youngerman Inc. William Youngerman has been providing quality services to South Florida patrons for many years. And with most clients he’s helped, he has assisted them in developing their interest in precious metals trading to a whole new level. We feel more than certain that when you choose William Youngerman, you’ll benefit from his work tremendously. But more so, we also feel certain that you’ll also be added to his growing list of satisfied customers. For any inquiries regarding William Youngerman’s services and the precious metals he has in his inventory, you may call us at (561) 368-7707 or visit our contact page.

Why is Palladium More Valuable Than Gold?

For the longest time, gold has reigned supreme as the most valuable of all precious metals. But within the past few years, palladium has proven to be the most significant of investment potential. Last year, palladium started getting a rise in popularity as this metal’s value was surpassing that of gold’s, piquing many investors’ interests.  Since then, palladium has been dominating the market when it comes to precious metals. “But why?” you might ask.

If you wish to know more about why palladium’s value has been higher than gold’s since 2019, then continue reading below to see why and how this precious metal has been dominating the market.

What is Palladium?

Before even wondering why palladium is more valuable than gold, you might’ve asked yourself “what is palladium?”

In short, palladium is a lustrous white metal that belongs to the six platinum-group metals. Most of the palladium that’s found typically ends up in the exhaust systems of cars. This is because the precious metal helps turn toxic pollutants into less harmful carbon dioxide and water vapor. You will also see palladium used in electronics, dentistry, and especially jewelry.

Most of the world’s palladium comes from Russia and South Africa. It’s usually extracted as a byproduct during the mining of platinum and nickel.

Why is it More Valuable Than Gold?

In short, the reason why Palladium is more valuable than gold is that the former metal hasn’t responded to growing demand more than the latter. The usage of palladium is increasing since many governments are attempting to crack down on pollution from vehicles. In China, especially, automakers are forced to increase the amount of precious metals they use for catalytic converters.

Why is The Price Rising?

As mentioned above, the global demand for palladium hasn’t been met for quite some time. And experts agree that it won’t continue to meet global demand for a while.

Because it’s a secondary product of platinum and nickel extraction, miners are unable to increase its output in response to rising prices. And because of this, 2020 might be the 9th year in a row where palladium demand is unmet. This is determined due to South Africa – which produces around 40% of the world’s supply – likely being unable to increase output once again.

Also, because countries have been demanding more of palladium for cars, other parties have seen the potential in this metal’s value. This has resulted in thefts of vehicle’s catalytic converters (where the metal is stored). And due to this thievery, more and more of the precious metal has been demanded.

Want to Invest in Palladium? Contact William Youngerman

If you find the investment potential of palladium intriguing and wish to purchase or even sell it, call William Youngerman in Boca Raton today. William Youngerman is very passionate about the values of precious metals. In his business, you’ll find that he can assist you in the sales of gold, silver, platinum, and palladium bullion, coins, and jewelry. For any inquires, you may call William Youngerman at 1-800-327-5010 or visit our contact page.

What is Palladium & Why Should You Invest In It?

It’s a metal you’ve probably never heard of before and you might be thinking to yourself, “why would I want to invest in it?” The metal seems foreign to you and purchasing it might not seem like a great idea. That is, until, you see its value. Palladium, as it turns out, might be the absolute best investment you could make right now. Its price has been soaring for the past few years and experts seem to agree that buying palladium would be one of the most significant purchases you can make. Continue reading below to see what makes this metal so valuable and why you should buy it.

What is Palladium?

Palladium is a white material that is one of the four precious metals and also one of the six platinum-group metals. It’s most popular use is its appliance in automobile converters to reduce pollution. It’s also used in electronics, dentistry, and jewelry. What makes it underrated as an investment opportunity is that it’s tremendously unknown to many potential buyers. It’s usually shadowed by gold’s popularity despite it being much more valuable.

Why is it so Valuable?

The main reason why the metal is valuable is that it’s highly demanded by the automobile industry. As pollution regulations are getting tighter, many automobile companies are required to reduce the emissions of their products. China especially – being notorious for its pollution – has placed tighter restrictions on automobile companies, forcing businesses to utilize more of the precious metal. Supply, however, has not been able to keep up in demand for at least nine years and experts believe we’ll see palladium prices skyrocket again in 2020. Its dependency has become so common that it’s now more valuable than gold.

Why is Supply so Tight?

Because palladium is a byproduct to platinum or nickel, producers can’t respond quickly enough to price changes. Due to the supply of palladium not possibly being able to meet demand again this year, prices are projected to continue soaring. Also, because Russia and South Africa are the major sources of palladium mining, both countries have been facing supply disruptions. Palladium supplies are highly susceptible to mine production halts and political disruptions, hence why prices have been sharply increasing over the past few years.

Get Your Palladium From William Youngerman

Though rare, many businesses can offer consumers palladium items for purchase. One such business happens to be William Youngerman in Boca Raton, Florida. Since 1967, William Youngerman has been offering services in coin dealing for customers on both a national and international scale. If you wish to purchase or sell your palladium – or any precious metal, for that matter – from a trusted business, look no further than William Youngerman. To schedule for an appointment, call us at (561) 368-7707 or visit our contact page.