Describe the advantages and disadvantages of investing in precious metals and co

Question

Describe the advantages and disadvantages of investing in precious metals and collectibles. What are some reasons precious metals have done well in the past year or so?
Describe the advantages and disadvantages of investing in precious metals and collectibles. What are some reasons precious metals have done well in the past year or so?
Describe the advantages and disadvantages of investing in precious metals and collectibles. What are some reasons precious metals have done well in the past year or so?

Explanation / Answer

Investing is precious metals and collectibles has both advantages and disadvantages. As advantages are concerned, the first advantage of investment in precious metals and collectibles is that there price is less volatile and there are low fluctuations in rates as compared to many other investments. This is main advantage of investing in metals as compared to investment in stock market. Other advantage is there is universal acceptability of these metals and can be liquidate easily as and when required. Trends show that there prices go upward in the long term so low risk involved in long term investment in gold.
As disadvantages are concerned main disadvantage is there is always a risk of theft, storage problem in case of large investment is associated with investment in precious metals. Hidden charges taken by dealers at the time of purchasing are another problem. Then is it a good investment option only for long term so for investors with short term approach this is not a good investment option.   

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