How to Discuss Precious Metals with Your Financial Advisor

Since investing is a cyclical endeavor, it is important discuss precious metals with your financial advisor.  Good financial advisors know that a client’s portfolio needs to be diversified to protect them against losses.  It is also important to know what questions to ask.

What Portion of My Portfolio Should I Invest in Precious Metals?

There are several different types of precious metal investment, including bars, minted coins, and certificates.  Most financial advisors recommend that the average person invests between 5% and 33% of their total assets in precious metals.  A good financial advisor, however, should take into consideration their client’s age, financial position, amount of liquid assets and risk factors before determining the right percentage of investment.

What Types of Precious Metals are Available and Which Should I Buy?

Gold, silver, platinum and palladium are the most popular forms of precious metals that investors purchase. Which type you choose to invest in is solely a personal choice and should be based on your portfolio needs.

Where Do I Buy Physical Precious Metals?

The best option is to ask your financial planner where to purchase bars, coins and other tangible precious metal assets.  If they don’t have a recommendation, an online search will yield many different precious metal dealers.  There are some questions you need to ask before using one of these brokers, however:

• How long have they been in business – ten or more years of experience is ideal when choosing precious metal advisors.
• Do they buy as well as sell – a reputable dealer should always buy as well as sell.  If they are sellers only, they are not legitimate and should be avoided.
• Check references – ask for and check references to be sure the broker has a good reputation and is not a fly-by-night agency

How Do I Pay For Precious Metals?

As with any investment, precious metals are paid for with cash or check.  Your financial advisor may handle the transaction for you, or you may do it yourself.  Bank wires are another method for paying for precious metals, and usually make the transaction go much more quickly.

How Do I Get the Precious Metals?

Precious metals can be shipped to the investor using a low profile shipper, such as registered United States mail or FedEx, or they can be shipped to a special precious metals depository.  They are often shipped “FOB”, or “Freight on Board,” and this often means the seller pays for shipping.

How Do I Store Precious Metals?

Precious metals valued at less than $10,000 can be stored in a home safe or bank safe deposit box.  Those valued over $10,000 should be stored in a depository.

Precious metals are tangible assets that protect investors from the volatility of the stock market.  Buy asking good questions of your financial advisor about metal, you can be assured that you make the right choice for your financial needs.  For more information about precious metal investing, visit www.dillongage.com.