Investing in gold, silver, platinum, and palladium offer a great way to diversify your investment portfolio. Unlike the volatile stock market, precious metals typically hold their value pretty consistently. They are also in limited supply on Earth, which makes them more rare and highly sought-after.

Precious metals are commonly associated with jewelry, but the reality is that they are used in a variety of different ways which keeps them in high demand. This includes uses related to technological advancements, which will only continue to increase over the coming years.

Investing some of your money in gold, silver, platinum, or palladium will allow you to diversify your portfolio. This is highly advisable to protect you against a sudden downturn in the stock market. If all of your assets are held in the stock market and the stock market crashes right around the time you plan to retire, you could face a lot of financial stress. However, if some of your assets are held in precious metals, you will be less adversely affected.

Precious metals are also very easy to liquidate when you are ready to sell them. Since they are in such high demand, you should have no trouble finding a buyer. This is not the case with real estate or some other investment alternatives.

It goes without saying that you want to purchase gold when it is at the lowest price possible. While this isn't always easy, there are a few signs that can help you know if it is a good time to invest in good. Typically, the price of gold rises as the stock market drops. If you can purchase gold before the stock market is expected to take a big drop, it is probably a good idea.

Learning how to check on the stock market futures could help you predict when you should purchase gold. Hearing that a reserve bank is going to begin printing more currency is also often an indication that the price of gold is about to increase since the value of gold goes up as the value of the national currency goes down.

A gold IRA is one type of Self-Directed IRA, or Individual Retirement Account. Gold IRAs allow individuals to invest in gold, silver, platinum, or palladium in their retirement account, rather than the stocks and bonds with a traditional IRA. Gold IRAs offer the same tax advantages of other types of retirement accounts, but may be subject to higher fees.

The benefit of choosing to set up a Gold IRA is that you'll be able to diversify your portfolio by holding some precious metals instead of all stocks and bonds. Many times, you can even roll over an existing IRA into a Gold IRA.

The right percentage of a portfolio to dedicate to gold investments will vary by person. Consider your comfort level with different types of investments as well as your current age. If you are close to retiring, experts advise against making riskier investments. However, if you are years away from retirement, you may feel more comfortable taking a bigger risk and investing more money in gold.

You could also modify the percentage of your portfolio held in gold by closely following the price of gold and the stock market. This is riskier though, since if you don't move quickly enough you could lose a lot of money.

Gold is available in coin shops or from bullion dealers. You may be able to find a local bullion dealer or coin shop in your area if you are interested in purchasing in person. Before visiting a dealer, you will want to read up on their reputation and business practices to make sure you choose someone reputable. It is also a good idea to determine the current price of gold and bring it with you to make sure you don't get scammed.

In addition to purchasing gold in person, there are a number of online gold investment companies. They offer a large selection of gold coins and bars as well as other precious metals that you could purchase for a personal investment or for starting a self-directed IRA. You should also check the reviews and ratings for a gold investment company before giving them your business.

No, all of your money should not be invested in gold. Gold should be used to diversify your portfolio to protect against sudden losses in the stock market. If all of your money was invested in gold, you could face similar problems to having all of your money invested in the stock market.

If the price of gold happens to decrease, your entire portfolio would decrease in value. If just a portion of your portfolio is invested in gold and the price of gold decreases, you won't take as big of a financial hit.