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Whenever the economy hits a rough patch, spokespeople hawking the opportunity to invest in precious metals like silver, gold and platinum come out in full force. The message put across is that investing in precious metals is a surefire way to make money quickly and easily, with little to no risk involved. And while the prices of gold, silver and other precious metals may continue to skyrocket, that doesn’t mean that investing in precious metals is right for everyone.
Like with any other type of investing, it’s important to research and become familiar with the market prior to making that first investment; otherwise you run the risk of being taken advantage of or not getting the most out of your investment.
Here are just a few things you should know prior to investing in gold, silver and other precious metals:
In it for the Long Haul
When investing in gold and precious metals, your best bet is to focus on long-term growth. If you’re looking for a get rich quick scheme, you should probably look elsewhere. Keep in mind that short-term gains are not guaranteed, and even when they seem impressive, they pale in comparison to long-term gains.
Like with any other form of investing, diversity is key. The number one rule of investing is to maintain a diverse portfolio and not put all of your proverbial eggs in the same basket. This rule applies to precious metal investment as well.
Don’t buy the Hype
Remember that pitchmen selling you on the idea of investing in gold are paid to do so; exaggerations and half-truths are not uncommon, so buyer beware.