Having a retirement plan is more essential now than ever. Gone are the days when working hard throughout our lives meant a secure future with a pension and other facilities. Today, we have to secure our own future by planning ahead. Plus, the global pandemic has hit industries, leading to rapid job losses. So, it’s time to plan – and investing in metal as a retirement plan is an excellent option.
Investing in metal is an excellent way to diversify your retirement portfolio. It can be used to fight against inflation, currency erosion, and recession. In the recent past, the price of paper money has decreased, affected by the same event that led to an increase in the prices of gold and silver. You can now invest in such precious metals through two options: bullions and ETFs.
To take a step towards individual retirement accounts backed by precious metals comparison, you can invest in either physical forms of gold, like coins and bars, i.e., bullions, or in Electronically Traded Funds. Physical bullions are not new; it’s a traditional sign of wealth. ETFs are relatively new, vehicles of investment. With these, you can hold and trade papers that reflect the metal price.
But, gold and silver are not the only metals that you can invest in. There are many other precious metals in which you can invest for a secure future.
Investing in Metal as a Retirement Plan
Let’s check out the different metals in which you can invest as a retirement plan.
Gold is the most popular metal for investment purposes due to its stable price. You can directly invest in physical bullions like coins and bars, but very few retirement plans under 401 (k) allow the choice of direct investment physical gold. So it can’t be a part of the retirement portfolio. In order to enjoy access to gold, you can always choose to go for mutual funds or ETFs, which are easy to trade.
The price of silver fluctuates very often. This rate depends on the role of the metal as the value store or industrial metal. As a result, it is a much more volatile metal to invest in. It is also much more affordable and is, therefore, a popular investment. Silver has a high investment demand, but remember that its price is dictated by the equation of demand and supply, resulting in fluctuations.
Platinum, too, is traded throughout the day and night in the commodity markets of the world. The price. When the market and the political scenario are stable, platinum can be pricier than gold as platinum is rarer. But its price depends on demand and supply. Small amounts are extracted from the ground every year. Interestingly, its demand in the automobile industry largely affects its price.
Copper has become one of the most popular metals in the commodity market in recent years. The price of this metal, too, depends on the fundamentals of demand and supply. It is popularly used in housing and construction. This industrial metal’s price, thus, gets affected by its demand in that industry. Another reason behind its popularity is the bullish tendency associated with ETF launches.
You can also invest in the following metals:
- Lead: Price led by demands in the electronics and automobile industry for batteries
- Aluminum: Price dictated by stable demands in the automobile industry
- Nickel: Prices likely to rise because of the demands in the steel industry
- Zinc: Prices to remain stable based on the demands in the automobile industry
- Steel: Prices to stay steady in the face of demands in energy efficiency measures market
Investments of all kinds are subject to market risks that go hand in hand with security. An interesting feature of metal is that during economic stability, the prices of metals may drop. But the upside is that the prices of metals run in the opposite direction of paper money, i.e., during the time of poor economy and drop in the value of paper money, metals will rise in value.
You’ll find a niche market of buyers during economic crises, but that’s enough to add to your wealth. Besides, the price rise is usually quite drastic. In general, too, the price remains more or less stable as the over-supply of metals is not really possible. So, study the market carefully and start investing in various metals in the form of IRAs and bullions.
Interesting related article: “What is Gold?“