Tax season has begun, which means you may be anticipating a tax refund. Tax refunds can be significant windfalls waiting to be spent or invested. If you’ve already received yours, consider investing it in gold and silver from a trusted gold buyer. Here’s what you need to know when investing and diversifying in precious metals.

Why Diversify in Gold & Silver

Diversification is a strategy that emphasizes the need for variety in investments. Allocating a portion to commodities, like gold and silver, minimizes your portfolio’s exposure to inherent risks and volatile external conditions. Precious metals are considered to be fairly stable investments, especially gold.

For centuries, gold has been a highly sought-after commodity that grows in value, particularly during economic slumps and global instabilities. Its significant gains balance out losses incurred from trading stocks and currencies when the economy is on a downturn. Gold doesn’t deliver as exceptional returns as equities do, but it does offer unparalleled insulation for your basket of assets.  

How to Invest in Precious Metals

While it’s tempting to allocate most of your investments in precious metals, a savvy investor diversifies. While you can invest some of your tax refund in purchasing bullion, coins, and jewelry from a gold buyer, you should also look at other methods that are more easily traded. When buying gold to diversify your portfolio, you have two more options that complement purchasing from a gold buyer.

ETF

An exchange-traded fund or ETF is similar to stocks that can be traded on an exchange. Unlike stocks, however, it is a pool of various assets, such as commodities and bonds, that make it similar to mutual funds. Investors can start small with a single share and only pay low brokerage fees for management and transaction costs.

Gold Stocks 

Some mining companies are listed on the market, allowing investors to purchase stocks. One downside to investing in stocks is their direct exposure to gold. When mining companies don’t perform well, share prices tend to go down—even if underlying metal prices are on an upswing.

Think about investing your tax refund in gold and silver instead of spending it. For quality precious metals, drop by R & S Rare Coins in Cabool, MO. As a long-standing gold buyer in and around Texas County, they offer a variety of jewelry, coins, and bullion to diversify your portfolio. Call (417) 962-5213 today or inquire about their services via their website.