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How to Invest in Precious Metals

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From Quick Guide: Guide to Precious Metals

Summary: Investing in precious metals is best done by purchasing an exchange traded fund or mutual fund that specializes in a variety of precious metals, as a fund manager can help make financial decisions for the account. Lower the risk of investing in precious metals with investing advice from a certified financial planner in this free video on personal finance.

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By Melissa Hammel
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Melissa Hammel, a certified financial planner (CFP) and nationally certified counselor (NCC), serves as the managing memberer and principal financial planner at Hammel Financial...read more

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Video Transcript

"Precious metals -- gold, silver, copper -- all bring money into the table. How do you get a benefit from that? One of the easiest ways to do it, and least complicated, is to make a decision to purchase an exchange traded fund or a mutual fund that specializes in precious metals and/or mining. One of the reasons to consider a fund rather than trying to go and purchase these items directly is that it will save you the hassle of trying to figure out, "Hm, is this a good deal? Are the prices legitimate? How do I know if it's real?" The fund managers help you by specializing in this area. Most mutual fund managers or exchange traded fund managers specialize in an area. One example that you might want to look at would be the Vanguard funds, precious metals and mining fund. This particular fund not only diversifies the type of holdings across all kinds of precious metals, but it also looks at the industries that work in this area. For example, mining and exploration. This gives you added diversification that you may miss if you're just purchasing the individual piece of gold or other type of precious metal. One thing that will benefit you as well is that the fund managers are responsible for making sure the rules and regulations are followed in the way the commodities are traded and exchanged."

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