By J.P. Dahdah, Founder & CEO of Vantage
Investing in precious metals is a great way to diversify your portfolio. It is also a great benefit of having a Self-Directed IRA account. However, investing in precious metals can take a lot of patience and thus you should have a plan when using your Self-Directed IRA.
1. Build a foundation. Before you try investing in physical precious metals, you should establish a foundation by investing in gold and silver. Because precious metals can be volatile at times, having a good working understanding will help you be prepared for any price fluctuations that can occur with precious metal investments.
2. All metals follow the trend. The first thing you need to understand before using your Self-Directed IRA account is that precious metals can fluctuate in value constantly. With platinum being more than 10 times more rare than gold, the market is smaller and the prices can sky rocket or drop nearly over night. By building your foundation in gold and silver you will be prepared to see even wilder price fluctuations with metal like palladium or platinum.
3. Set a target price and stay patient. The purpose of learning about precious metals is to understand that these can’t be categorized as impulsive investments. This means if one day they are low and one day they are high, there is no need to panic. Devise a plan that requires you to hold on to the metals for at least two years before considering selling. Be a savvy investor and set a target price to ensure you stay patient and avoid missing out on a better opportunity when liquation time arrives.
Using these strategies you will soon be on your way to becoming a precious metals investment guru.
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or ClientService@VantageIRAs.com.