What Time Frame Should You Pick for Your Precious Metal Investments?

There are times when people need to liquidate investments quickly. Sometimes they need cash to make a down payment on a house, make another major purchase or pay for a son or daughter’s tuition.

When is the right time to liquidate your precious metal holdings? Call Specialty Metals and we'll help you figure it out. Credit: cybrain/iStock.

Far more often, investors have the luxury of buying and holding investments for longer periods of time. When that is the case, investors have the luxury of taking a “long view” instead of fixating on daily price fluctuations of what they own. And when investors are able to adopt that kind of long-term planning, they are apt to feel more relaxed about where they put their money. They often invest more wisely too and make more money in the long run.

So What Is the Best Time Frame for Your Metal Holdings?

In planning how long to hold your precious metals, it’s helpful to check out the time lines that have been laid out by the Financial Industry Regulatory Authority (FINRA), which explains:

“It's important to know the `when’ of your financial goals, because investing for short-term goals differs from investing for long-term goals: Your investment strategy will vary depending on how long you can keep your money invested. Most goals fit into one of the three categories . . . short-term, medium-term and long-term.”

According to FINRA, short-term investments (less than three years) should focus on safety and liquidity; mid-term investments (between three and 10 years) can be in investment vehicles that offer stable longer-term growth; and long-term investments (10+) years can actually be a bit riskier.

Where Do Your Precious Metal Holdings Fit into You Overall Investing Plan?

We don’t have a crystal ball that lets us see what precious metals you now own – either in bullion, in materials that you haven’t yet recycled or elsewhere - but we’re willing to guess that most of your metals investments fall into the mid-term category that FINRA defines: you’re going to have them for between three and 10 years, so they should be investments that offer stable long-term growth.

And do you know what? Precious metals – be they gold, silver, platinum, palladium, or others – fit that bill perfectly. You’re holding and watching them for a period of a few years and are largely immune to short-term fluctuations.

When should you recycle your holdings? When should you liquidate them? Our consultants will be happy to discuss strategies with you and explain our Specialty Metals Smelters and Refiners Pool Account, which lets you refine and recycle your precious metals now and sell when values increase later on.

Give us a call at 800-426-2344 to learn more.

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