Wednesday, January 18, 2006

Precious Metal Investment tips

With the rise in Gold prices lately, I have noticed an increasing number of companies selling Gold, Silver and Platinum as an investment vehicle.

While some people may be attracted by the prospect of owning a relatively liquid physical asset like Gold, there are a few things to consider before you start buying bars of Gold.

Yes, Gold is a nice asset to hold, but only at the right price.

Consider the following:
Dealer Commissions
Financing Costs - Some dealers will provide financing for up to 80% of the value which can place you at risk if the price falls.
Storage Costs - Make sure you understand what your dealer is charging to store your metals if you do not take deliver.

Remember, these costs can reduce your ROI and generally make investments in metals unattractive for most.
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