Monday, January 3, 2011

Investment on precious metals - Pool accounts

Investment on precious metals is an effective and reliable way to multiply your wealth. Even returns (ROI) of 100% in a year is possible through this and with less risk compared to other mode of investments including real estate, stocks. Pool Accounts, or unallocated accounts, are precious metal account deposits in which the investor does not have the title to specific bars or coins. However, Pool account holders own a part of a pool of precious metals shared with others. Thus, Pool account is an excellent way of investing in precious metals without a need to 'physically' buy and sell thereby avoiding or sharing the cost of shipping, fabrication, storage, security etc. So, Pool account is a smart way of riding your investments exploiting the craziness of the world on precious metals and also on the industrial demand. Also, Pool account holders have a choice of converting their holding to physical metal by redeeming finally by paying the charges of shipping, fabrication etc. If you are able invest in USD, CAD, Euro or pounds sterling, www.kitco.com is a very good site which provides this pool account service.

Specifically, I am more impressed on the investment on silver than other precious metals (even over gold) and even any other investment vehicles for that matter. This is a link (http://www.moneycontrol.com/sensex_timeline/investing_tool_2010.php) which shows you that in 2010, silver had the highest ROI of more than 80% over other investment modes in Indian market. The following is a nice article on the potential of silver http://www.i-newswire.com/is-silver-the-new-gold/81916. So, try to have a significant portion of investment made in this on any dips and thus diversifying your portfolio in a healthy way. However, since this is all speculative and based on historical data and future predictions, use caution in determining your risk level and the appropriate fund allocation.

This is based on few investment methods that I have explored over the past couple of years and just a thought to share the experience for the benefit of others.

A strong and consciuos effort on investment is very important to any individual to multiply the personal wealth and in fact, this is more crucial than even promotion, salary hike etc in your professional career as they surely cannot drastically multiply your wealth to fight the inflation and become rich.

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