Investing in high value materials like gold is a popular way for savvy individuals to evade market volatility. Value losses are lower and, on the whole, such materials tend to see less price variation than other investments. The problem with investing in conventional materials like gold, though, is that it makes for a rather limited portfolio and investors need diverse portfolios to really thrive.
For those ready to look beyond conventional gold investments, there are a number of exciting possibilities, and each has its own advantages. Consider these 4 potential outlets for expanding your portfolio in ways that complement that your existing investment style.
Think About Stocks
Buying actual gold may seem like a secure strategy, but one of the advantages of this material’s overall stability is that it also insulates gold-related stocks. With that in mind, it’s worth considering stocks like Eldorado Gold Corp. (NYSE:EGO) or Barrick Gold Corp. (NYSE:ABX). Major gold companies have seen a rise in bullish investors, even in the face of environmental concerns and geopolitical tensions because gold mining companies have consistently high demand.
Explore The Gem Market
Much like gold, gems offer an opportunity to invest in a stable material that’s unlikely to lose much value over the long term. In recent years, though, the gem market itself has diversified significantly. Looking at the Tucson Gem, Mineral, and Fossil Showcase, the country’s preeminent gemstone collecting event, for example, visitors will find a range of wholesale and retail vendors, commercial collectors, and even industry tools. Do your homework before you go and know what different materials are worth. You’ll find great wholesale deals, but if something seems too good to be true, steer clear and invest elsewhere.
Did you know that private individuals can collect fossils? Not just the sort you might dig up in your backyard, but large, valuable fossils. In fact, collecting dinosaur bones has become a trend among celebrities and the super wealthy. Much like gems and minerals, though, you can’t take on the fossil market without proper research and guidance.
In addition to being knowledgeable, you’ll get the best deals on fossils and other rare materials by working with an investment advisor, because they have insider connections and know what specimens are most likely to gain value over time. According to Peter Lovisek, CEO of Fossil Realm and investment advisor, a skilled advisor will also help you select specimens that reflect your personal taste and add beauty to your home. These pieces aren’t just investments, but they’re also art.
The Rare Earth Revival
Examining this list, what all of these diversification options have in common is their connection to the mining industry – and one of the most profitable areas of the mining industry right now is rare earth metals excavation. Rare earth metals are used in electronics and much of the mining takes place in China. Concerned that US reliance on Chinese mining could be weaponized against us, though, the US has recently looked into efforts to increase our rare earth mining. Look for companies engaged in these rare earth mining efforts and hang on to them; it may take a moment for them to reach velocity, but it should see major gains in the next several years.
There are so many beautiful materials that make for great investments, as well as an assortment of stable and emerging stocks and EFTs. Equipped with this knowledge, investors should move to diversify their portfolios – and they can do so without straying too far from more conventional investment products like gold.
Disclosure: No positions in any of the stocks.