Long before human beings were trading Bitcoin and holding mutual funds, even before paper currency or minted coins were commonplace, we used precious metals as both a signifier of wealth and as a method of exchange. These days, metals are a viable option for both investing and day trading.
Within the metal market, gold and silver dominate the conversation but they aren’t the only options available for investing. There are a variety of commodities we pull from the earth, and many of them are traded on exchanges or physically owned by individuals.
Though precious metals like gold might not hold the same mainstream favour they once did, metals are still a valuable method of investing and potentially gaining wealth, and are widely used in investment portfolios today.
How do you trade metals?
If you’re looking to invest in metals, there are a few different avenues you can go down. When it boils down to the basics though, trading commodities like metals is really trading ownership of an actual amount of that metal, usually measured in troy ounces. Whether or not you have that metal in your physical possession is a different story.
With precious metals like gold and silver, you can buy and own actual pieces of these metals. These might come in the forms of bullions, bars or coins. Through institutions like banks, you can purchase different forms of precious metals. You can either keep those metals yourself or you can purchase the physical products without them ever being delivered to you.