For anyone thinking about their financial future, you might be looking at the current stock market and the inflation trends happening not just in the United States but globally and getting worried.  It feels like we have very few options nowadays, and the declining state of the economy from years of mismanagement and little done about it isn’t exactly comforting.

You might turn your attention to alternative styles of investment, if that sounds like you.  What might those be?  Well, there are a few, of course.  One of the primary ones are commodities, which you can learn more about on this page.  While we might worry that these types of investments aren’t eligible to be placed in a retirement account, there are ways out there that allow us to!

Commodity Classes

There are several different kinds, so I’d like to cover a few of them today.  Perhaps the one that I think of first is real estate.  Many of us only consider house flipping in this category, but it also includes renting out land to tenants.  So, having an extra bedroom in your home and turning it into a suite for a tenant could benefit you in the long run!

Of course, there are also certain commercial goods that fall under this.  Agricultural products are a big one.  Crops that are edible like wheat or corn are quite popular, but non-edibles like cotton are also a large product.  Starting to invest in them can be a bit difficult, though.

The energy market is also ripe for investing.  This might be things like crude oil or coal, but lately, many savvy folks who enjoy economics are turning their attention to renewable energy sources.  This might be solar, water, or wind energy, as some examples.  Research the market before you make a firm decision on it, of course.

Finally, there are precious metals, which is the bulk of what I will cover today.  These are gold, silver, platinum, and palladium, at least as the main ones that people decide to purchase.  I’ll discuss them in more detail later, but you can look at Regal Assets reviews for a brief overview of the market if you want to know more.  

Why Precious Metals?

There is a lot of conflicting data out there on this topic.  Some people worry that the coverage on it is biased, for example, or that there is little credibility.  However, I think looking at the facts should be a comfort.  I’ll go over three of the metals now and explain why they are worthwhile.

Platinum

I’ll start with one of the rarest ones out there.  Platinum is a beautiful white-silver color and shines with significant luster, making it a popular choice for high end jewelers.  That’s far from the only application for it, though.

Interestingly enough, when the Spaniards made their way into South America, they often tossed out any platinum they found as they thought it wasn’t as valuable as gold.  Little did they know it would become one of the most popular materials in the world for making high-quality items!

As far as its chemical makeup goes, it’s considered a transition metal on the periodic table of elements.  It resists tarnish and corrosion, which is part of why it is used in the manufacturing of cars and electronics.  You can read a bit more about it here: https://www.livescience.com/39144-platinum.html.

Silver

It’s iconic, it’s everywhere, and it’s valuable – it’s silver!  This metal might often come in second versus gold, but that doesn’t mean we should ignore it.  Rather, the unique properties it brings to the table are invaluable.

Perhaps the most interesting quality about it is that it has high levels of conductivity.  This is for heat and electricity, making it useful in many electronics like our cell phones and computers.  While sterling silver is more common in collectibles like silverware, it is still over ninety percent pure – just mixed in with about seven percent of copper.

Naturally, it’s also quite popular in jewelry.  Many rings, necklaces, and earrings are fitted with it, giving us a glamorous sparkle when we wear them.  

Gold

Of course, this is the big one.  When I say “precious metals” in a room of investors, most of them think of this metal.  Regarding the element, it’s considered the most malleable metal on the entire periodic table at resting temperature.  

That’s part of what makes it so valuable to us.  The variety of shapes it can be formed in means we can use it in many different ways.  Most investors opt for bullion, or the physical bars, since they can be stored with a custodian and kept safe.  

If you’re planning on opening a self-directed IRA that focuses on precious metals, just keep in mind that only certain forms of collectibles are allowed.  Generally, this is restricted to coins that have a high content of pure gold.  Some examples of these are the American Golden Eagle coins, or some Australian kangaroo coins.

It’s also used in manufacturing, though, mostly of electronics.  Once again, a lot of our cell phones have some in their circuitry.  That’s because it’s also a good conductor for electricity.  

It’s not the rarest metal out there, but silver is more abundant for sure.  This is largely due to how long it takes to form and how much pressure from the sun’s rays is needed.  

So – is Investing Worth it?

If you’re looking for a hedge against the rising inflation rates, you may want to consider it for your investment portfolio.  Many of us know that we should diversify but don’t know where to start.  Gold or silver bullion are two options that you may want to investigate.

Our financial well-being in the long term should be something we think about often.  It can be all too easy to get swept up in the present in terms of spending but stick to a budget and don’t let yourself fall into those traps.  Good luck with your investing!

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