What asset type should I choose?

Everyone will have their favourite. Below, we outline the options. Transaction timing is important since the increase in value against fiat currencies, such as the pound sterling, tends to be wavy (up and down) and progresses in jumps and starts.

Investing in Mining Shares

a miner is looking at a piece of gold rock

Mining companies can be divided into majors, which own many projects and have relatively high capital value, and juniors. Investing in junior miners is often considered speculative and particularly risky, but a successful choice can lead to staggering returns. There are mines in safe jurisdictions, such as Canada or the USA, that might interest you. You could also invest in a company that mines other metals as well.

Please consider UK service providers and platforms listed on the website quiteamazing.directory, as well as UK-listed mining companies.

Investing in funds

Investing in funds and Exchange-Traded funds (ETFs) that focus on precious metals or the broader metals sector can be an effective way to diversify your portfolio. These investment vehicles provide exposure to the performance of metal prices and related industries without the need to directly own physical metals. Funds and ETFs can target a specific metal, like gold or silver, or encompass a range of metals, sometimes including base metals (industrial metals) like copper and zinc.

 

When considering investing in these funds or ETFs, it's crucial to evaluate their track record. Historical performance can offer insights into how well the fund has managed market fluctuations and achieved its investment objectives. Equally important is understanding the background and reputation of the fund managers. Their expertise, experience, and standing can significantly influence the fund's performance and stability.

celebrating at a business meeting

Additionally, investors should be aware of the specific strategies and holdings of the funds or ETFs they are interested in. Some may focus on companies involved in metal mining and production, while others might invest in futures contracts or physical metals. Understanding these nuances can help investors make informed decisions that align with their financial goals and risk tolerance.

Please consider UK service providers listed on the website

Investing in Coins & Bars

Due to their crafted shapes and designs, investing in gold and silver coins often comes with a premium over the metal's spot price. Additionally, certain coins, such as those from the Royal Mint, offer special tax advantages, making them particularly valuable to UK taxpayers compared to similar coins.
On the other hand, "retail bullion bars" are typically priced closer to the metal's spot price. However, there is still a slight premium due to the manufacturing process and retail markup. (Two further types of bullion bar investment are mentioned below.)
 
It's also worth noting that some precious metal coins derive additional value from historical or numismatic qualities, especially if they are ancient or rare.

Investing in Jewellery

Investing in jewellery can be a sophisticated way to diversify your portfolio, offering both intrinsic and aesthetic value. The base value of a jewellery piece typically comes from its melt-down weight, calculated by the weight and current market price of the metal, such as gold, silver, or platinum. Additionally, precious stones set in the jewellery—like diamonds, sapphires, or rubies—add further value, considering their carat, clarity, color, and cut.

Beyond the base value, the true allure of jewellery investment lies in its beauty and craftsmanship. High-quality design, skilled artistry, and the reputation of renowned brands and designers can significantly elevate a piece's worth. Historical significance and unique cultural heritage also contribute to a jewellery piece standing out in the market.

For those interested in exploring specific jewellery investments, we recommend checking out the UK Producers listings on the website

Investing into Allocated LBMA Member Vaulted Bullion Bars

The bars will be of gold, silver, palladium, and platinum, with the gold ones weighing approximately 10.9 to 13.4 kilograms.
 

Each bar is identified and can be fractionally divided on a computer system. Deals take place online involving the buying and selling of these bars or fractions.

 

You can invest a small amount into a particular bar in a specific location. Collectively with other investors in that bar, you will own the bar. You can, of course, scale up and own whole bars if you choose.

Investing in Unallocated Precious Metals with an LBMA member

You can invest in unallocated precious metals, which include gold, silver, and platinum (such as through the Royal Mint’s DigiGold service), as well as palladium through other providers. With unallocated investments, specific bars are not individually identified. Instead, you hold a contractual claim to a share of a larger pool of these metals, with legal ownership retained by the dealer.

This approach offers potential cost savings related to inventory management and the movement of metals, both within storage and when they are taken out of storage

However, it's important to be aware of the additional risks: since your rights are based on a contractual claim rather than direct ownership of the physical metal, you may face greater exposure in the event of the dealer  having financial issues.

Crawl Walk Run into Precious Metals

Your pace may surprise you!

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