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  1. Investing in precious metals is one option that you can consider, especially during an economic crisis like the one we go into, and there are several metals to choose from. Gold and silver are the most traditional options that investors initially look at. However, platinum and palladium are also increasing in popularity with investors. All are possible options that you can consider adding to your portfolio for different reasons. Why Invest in Precious Metals Before investing in precious metals, you should learn more about why investors choose to add this to their portfolios. Most precious metals are an excellent hedge against inflation, and this means that when investors usually sell their riskier stocks, they often turn to precious metals. As one investment vehicle decreases in value, the other increases in value in many cases. Precious metals are also a popular investment option to consider besides economic uncertain times, during times of war and political strife. When the demand for precious metals increases, the cost can skyrocket in a very short period of time. Many people also like investing in precious metals because of the incredible volatility. As well as the fact that the metals trade almost 24-hours per day, every day. This presents considerable opportunities to investors who are in the short game, as well as those who consider taking a long-term hold with their positions in commodities. However, this type of investment should be reviewed periodically even if you plan to hold it for a long period of time. This is because the price can fluctuate substantially at times. If you hang onto the asset for too long, you risk losing a substantial amount of money. You may also risk being forced to keep the asset until the prices rise at some point in the future. What Precious Metals to Invest in Gold is the most common and popular precious metal to invest in, but there are other options to consider as well. 1. Gold Gold has been traded for centuries, and it has commonly been used in coins as well as jewellery and more. It has minimal uses in industry, however. Because of this, its price is largely determined by consumer sentiment. Investors often turn to this to stabilize a portfolio in rough economic times. 2. Silver Silver has a more affordable price than gold. More than that, it has many more practical uses in various industries. This means that the value of silver is less dictated by sentiment. There are several silver funds that you can invest in if you do not want to purchase the raw commodity. 3. Platinum Platinum is another option to consider. Because it is a relatively new commodity for investors to focus on, the price is considerably lower than gold. This means that there is ample room for upward movement of the price. As is the case with silver, this precious metal has many applications in industry. How Much Are Precious Metals Worth There are different ways to invest in precious metals, and the cost of the investment varies substantially. The cost of the metals varies regularly throughout the day based on various factors, and there may also be exchange or brokerage fees. For example, if you invest in a mutual fund that contains precious metals, you may pay expensive fund fees. There may be trade order fees if you buy and sell stocks in mining companies. You can also invest in coins or bullion for some precious metals. The value of these items varies based on rarity, age, weight and several other factors. These types of investments are only suitable for those who have a safe and secure place to store them. Are Precious Metals a Good Investment? Before you spend your hard-earned money investing in precious metals, you may want to learn more about the pros and cons associated with this investment option. Each type of precious metal has its own benefits and drawbacks, but there are some common pros and cons for all of the precious metals for you to review as well. Pros The price of precious metals may be largely under the influence of sentiment. Some metals, such as gold, much more heavily relate to emotion or sentiment than others, such as palladium. Precious metals have a true, physical value, and there is no credit risk associated with investing in pure commodities. If you invest in precious metals through a mining company or another type of company, however, there is a greater risk. Adding precious metals to your portfolio may be a great way to balance risk and moderate your portfolio if it is otherwise heavy in stocks and bonds. Cons Even though there is no credit risk associated with investing in pure precious metal commodities, there is still a risk that prices will decrease and that you will lose money overall. While the return on precious metals varies substantially, keep in mind that the rate of return may be lower than with real estate or stock investments. Investors should spend time regularly reviewing their portfolios to determine the best times to buy and sell precious metals. This is not a good commodity type to simply sit on because its value can fluctuate dramatically within a short period of time. How to Invest in Precious Metals If you are thinking about investing in precious metals, you should understand the many options available for doing so. Stocks, ETFs and mutual funds that trade the commodities or that focus on businesses that work with precious metals are a few options to consider. Another option to invest in gold is through a gold IRA. You can rollover your 401k or IRA account into a gold IRA account and take advantage of the safety and reliability of gold There is a wide range of focused businesses, such as mining companies, as well as indirect businesses, such as automotive manufacturers, that you can consider investing in. The risk, price, and return on investment vary dramatically from stock to stock. Another idea is to trade with the commodities themselves, such as with futures or options. You may also purchase and hold coins or bullion for some of the precious metals. A final option available to you if you want to invest in precious metals is to buy certificates. Certificates essentially give you a document showing physical ownership of the metals, but you do not have physical possession of the metals. This means that you do not have to worry about storing or caring for the metals. Conclusion Investing in precious metals may be relatively new to you. Additionally, you may not be certain how to complete this process or what you need to know to profit significantly from it. As with any type of investment, it is best to buy low and sell high when investing in precious metals. You should spend time learning more about the commodities markets before jumping in. Just as you can lose money with other types of investments, you can also lose money when investing in metals.
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  2. Investing is one of the surest ways of building up passive income. But many beginners falter for lack of sound knowledge about investing principles. Whether you are an employee of a corporation, self-employed or a businessman, you can earn great amounts of passive income by becoming an investor. Many people try their luck at investing but come up short. The major reason for this is lack of prior knowledge about investing. It is of paramount importance to learn the basic investing principles before diving into the practical world of investing. In this article thirteen basic principles will be discussed briefly for newbies. Principle 1: Diversify The first and foremost principle is to diversify. Even if you are starting out with a small amount, it is always better to buy more than one stock. In this way even if a couple of stocks underperform, the other stocks making up your diverse portfolio can take the brunt. Diversification is the golden principle of investing. At no cost should you ever ignore this rule. Principle 2: Start investing at an early age I am sure you all have heard about the power of the compound effect. Well as the old saying goes, compounding can be your best friend. What it means is that the longer period for which you have your money invested; the more you stand to gain. The longer your money will work for you. Those who start out at a young age, definitely have an advantage over their peers. But don’t worry, because even if you didn’t you are always early as compared to those who never decide to start investing. Principle 3: Invest in what you know This implies two things. First is that you should try and buy stocks of a company, whose business you know about. Even if a little. Rather than jumping into a company about whose business operations you know nothing about. Second, is not to get ahead of yourself in the investing business. What I mean to say is that keep the invest amount directly proportional to your learning curve. And not go into complex trading options prematurely. By all means go for it, but only and only once you have mastered the core concepts. Principle 4: Don’t let temporary market slumps alter your long term investment plan Don’t make the rookie mistake of getting on the band wagon. More often than not, people tend to buy when others start buying and sell when others start to sell. This sets off a chain reaction and doesn’t necessarily reflect the true picture of the market. Don’t alter your complete investment plan and your portfolio based on a temporary market slump. Often there are spectacular gains to be made by sticking it out. Principle 5: Don’t doubt your trades Once you have made a decision based on sound analysis to sell a stock, never look back. Don’t be like those who say, what if I had held on a little longer? What if I hadn’t sold the stock just yet? Never second guess your own decisions. If you do this, then you can never become a successful investor. Principle 6: Dollar averaging What this means is that regardless of the market condition, you keep on investing the same amount of money monthly into your portfolio. Believe me it really works. Although, there are not many such schemes or options out there nowadays. But if you look hard enough, you will find them. Principle 7: Never Panic An investor needs nerves of steel. You can’t let your emotions get the better of you. Often there have been occasions in the history of markets, where people have jumped the boat too quickly. An investor needs a level head. This is not saying that you not take risk into account. A ll I am saying is that keep your emotions out of it. Only keep your wits about you. And you will start to see things for what they really are. For e.g. sometimes a news breaks which has an adverse effect on a certain industry. As a result people start getting out of its’ stock. But this shouldn’t mean that panic should set in and other industries which are doing just fine also start to feel the heat of selling. But this is exactly what happens in the majority if the cases. But the winners are those who keep their cool. For soon enough the market corrects itself and those who sold tend to be the losers. Principle 8: Pay attention Always remain alert and pay close attention to what is going on with your portfolio. Even if you are dead sure about certain great stocks, you should never stop monitoring them. It only takes a moment sometimes for the surest of stocks to tank. Principle 9: Bet on your winners and vice versa Always stick with your winners and try to get rid of the losers as quickly as possible. Don’t wait for the things to turn for the better. Rather, minimise your losses. And stay with winners. Discard the losers in an intelligent and timely manner. Principle 10: Go for a stop loss This means that you should always set a limit at which your stock is automatically sold if it suffers a loss. It is the surest way of reducing your losses. And it is especially helpful for the newcomers to the world of investing. And the opposite holds good for your profits. Don’t be extra eager to sell if your stocks start to rise in prices. In other words, you can afford to be slow in taking profits but not always fast with your losses. Principle 11: Stick to your original plan In investing as with any other thing in life, it is crucial to stick with your plan. Don’t change the direction of your sails with every little change that happens in the market. If you have started your portfolio with well thought out stocks, stocks that you know about, then stick to them. Principle 12: Don’t spend the principal amount Always buy your stuff or pay your expenses from the dividends from your stocks or the interests on your savings. Never ever reduce the principal amount. Rather on the contrary, always make it grow by re-investing a margin of the profits and earnings. Also make sure you don't invest money you can't afford to lose like house mortgage payments, money for groceries etc. If you don’t grow your asset column regularly, you will be left behind in the world of investing. Always follow the rule of paying yourself first. If you follow this principle, then in no time you would have grown your portfolio. Principle 13: Face your fear You can’t be right with your moves all the time. And it is not important to be. You will make some mistakes. And that is all right. As long as you are making few good ones, you are on the right track. You are going to turn a profit in the end. Many people tend to lose out on the deals of a lifetime because of the sole reason of fear. Conclusion If you follow the principles given above, then you are on your way to becoming an investor. You must always remember that money doesn’t always makes money. Money is an idea and nothing more. Ideas make money. And that is why it is important to know the basic investing principles, before you decide to test the waters. In the world of investing, always use your mind. Author’s Bio: This article is written by Jacob Arch, He is a famous article writer and a teacher at Assignment Service. He completed her Bachelor in Literature from University of London, UK. You like to write about Investments, Online Trading, Finance, Business, Digital Marketing or Crypto-currencies? Check our Write for us page. We'd love to share your knowledge with our audience.
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  3. A credit card can be a great tool for your personal finance, but only if it used responsibly. When deciding to get your first credit card, you need to make sure you are financially responsible enough to get a credit card. Getting a credit card and using it irresponsibly will actually hurt you more than not having a card at all. One of the main benefits of getting your first credit card is the ability it has to boost your credit score, or even develop a credit score for you if you do not have one yet. Without a credit score, you will not be able to get a mortgage, or a car loan–your credit score can affect you more than you think. If you are getting your first credit card, chances are you do not have a credit score yet. Here are some things you should consider before you get your first credit card: Pay Attention to the Interest Rate When looking for your first credit card it is important to know what things you should consider and what to look out for. One of the most important things you need to consider when comparing offers is the interest rate you will be charged. It is important to shop around and find the lowest interest rate. Ideally, you will pay off the credit card balance in full every month, but if you have to carry a balance from one month to the next, you will be grateful you found the best possible interest rate. Are There Rewards? Some credit cards also offer other rewards and incentives–some lenders may offer cash back rewards, or a small percentage of each purchase that you will get back and be able to apply to your statement balance. This is a great way to save money while building your credit score. If you use a traditional debit card, or cash, you will not get any cash back. So, even if it is only a percent or two you will be saving money by using your card. Emergency Uses Some people are skeptical when it comes to getting a credit card–and that’s totally understandable. You may fear racking up your credit card bills and falling into debt or going bankrupt but having a credit card can be useful if you’re in an emergency situation. For example, if you’re hurt on the job, it’s likely you will be eligible for workers compensation. Workers compensation will benefit you in many ways–but it might also land you in court. If you need to hire a workers compensation lawyer, this is when your credit card will come into play. What are Secured Credit Cards? If you are a new borrower with limited, or no credit at all, you may have a hard time qualifying for a credit card. The alternative option is to get a secured credit card. With a secured card, you will put a down payment on your card, then your spending limit is up to that down payment amount. The difference between a secured card and a debit card is the fact that when you make payments on your secured card they will be reported to credit bureaus. By reporting your payments to credit bureaus this will build your credit history. Then, you can try to apply for a more traditional credit card after building your credit for a while. If you do not make payments on time though, that will also still be reported and will hurt your credit history. What Are the Fees? You should be aware of any fees associated with a credit card before you commit to an offer. There are many different fees you could be charged, and all lenders impose their own unique fees. Some of the most common fees include late fees, foreign transaction fees , or an annual fee if your annual spending is not over a certain amount set by your particular lender. Things like the foreign transaction fee should be taken into careful consideration. If you decide to use your card in a foreign location, the fees could add up quickly. You may even be charged a foreign transaction fee if you make purchases from a business that has its primary location in a foreign country. Every card has different foreign transaction fees, and some do not have any foreign transaction fees at all. If you are planning to travel, or there is any chance you would travel and need to use your card, it is important to find a card with minimal or even no foreign transaction fees. Use Your Card Wisely Getting your first credit card can be a rewarding process, and it can provide many financial benefits, both short and long-term. Before getting your first card, you must carefully assess if you are ready for a credit card–you don’t want to spend half of your life rebuilding your credit score. You have to be financially responsible by–making your payments every month and not overcharging what you can afford to spend. If used correctly, your first credit card can provide you value for the rest of your life. If you make payments on time and are responsible with your credit card, your lender will most likely increase your available line of credit over time. What was once your first card with a small credit limit could become a great asset for you financially as your credit begins to build. Getting your first credit card is a big step toward financial independence and is a great idea if you are ready. Just make sure you do not jump into an offer too quick, and find the one best for you.
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